If you look at the statistics displayed on the this website, you will see that the number of non-fatal and work-related illnesses has been increasing significantly in the last few years. Whether you are involved in an auto accident or injured at work, most of these cases are usually settled through negotiations with the insurance companies while a few reach the court as shown here. When you win your case or reach a settlement agreement, you get payments that come as structured payment as indicated on this page. You will discover more about structured settlements in the following article.
First you have to know what structured settlement is, which is where you are offered a series of small payments by an insurance company which you can know more about if you click here. Since the people who win personal injury cases often face different financial difficulties, this type of payment comes with a great deal of flexibility; the entire amount can be paid on your terms provided it is not the entire amount is not disbursed upfront.
If you are negotiating a structured settlement, you can always sit down with a professional to help you find the payment option that best suits your needs because there are plenty. If you are wondering whether a structured settlement is the best option for you, the answer to the questions depends on more than one factor. For instance, this type of payment is suitable to a person who has lost his or her job due to a work-related injury because it can replace the salary for years.
You should consider tax implications when you are trying to figure out the payment method to use when you have won a personal injury case and ready to be compensated; because a big lump of settlement of punitive damages can cost you a lot in taxes, you get a pass on compensatory damages. As you can see, choosing structured settlement means you will enjoy financial security so as long as the settlement period continues. You never know what may happen or change in the future but the structured settlement agreement will not be changed.
For someone with a structured settlement looking to get a substantial amount of liquid capital quick, selling the original agreement is always an option. With the information on this guide you have the answers to all your questions and you see why structured settlements are preferred by most. Discussed above is everything you need to know about structured settlement and when it may be a good idea for you.