Learn In Simple Words What Is A Structured Settlement?

Learn In Simple Words What Is A Structured Settlement?

What is a structured settlement? Structured settlement it's a type of payment, used by an insurance company to pay for the settlement of a personal injury, medical malpractice or a wrongful death claim. The full amount of the annuity settlement isn't handed over right away. Instead, it's made in payments that can vary in amount duration and frequency. They can be ones a month, ones a quarter-yearly or a mix and every payment structured is different.

The old saying if something seems too good to be true. Probably, is that's not always the case. Right now you're considering annuity settlement and wondering, what to do with it, what if there was someplace you could put your money that was both saved and offered a good return? Usually, if you have one you can't have the other. But Congress passed laws (Periodic Payment Settlement Act) in the 1980s to help individuals, who have been injured and families. Who have lost loved ones? They made it possible for you to receive a structured settlement. 

Learn In Simple Words What Is A Structured Settlement?
What Is A Structured Settlement?

Almost $6 billion in new structured settlement issued annually, according to NSSTA (National Structured Settlement Trade Association) 

How Do Structured Settlements Work?

Most annuity structured settlements happen as a result of an injury. For example, if you've been injured in a car accident, hurt on the job or as a result of negligence or malpractice. Next, a lawsuit or insurance claim is filed for personal injury, medical malpractice, negligence or wrongful death.

   Ø  Personal injury

A personal injury case is a civil case where a lawsuit seeking money from the person believed to be responsible for the harm is filed by someone who has been harmed. Structured settlement money helps recipients pay for medical or other expenses.

   Ø Medical Malpractice

A doctor or other health care professional has to make a mistake. They have to do something wrong or they have to fail to take action. When they should have, the mistake has to cause serious harm to the patient. If there's just a mistake but the error doesn't seriously harm, the patient there was no case. Both the medical error and the resulting harm have to be there in order for there to be a sound legal claim.

   Ø Negligence

Wherever there is a duty on someone to exercise a standard of care, towards someone else and when a person is injured because that standard of care is not met. Then there is a situation in which the law calls negligence.

   Ø Wrongful death

Damages for wrongful death may be available for the deceased's wife, husband, parent, and child. Damages are available for the estate of the deceased as well. The claim against the driver and/or car owner who caused the accident can be made. If the other driver and/or owner of the car did not have insurance, an Uninsured Motorist Claim can be filed if this coverage exists. Family members of the decedent can sue for the loss of companionship, loss of services, loss of income, and other losses.

The injured party may be awarded monetary compensation for medical injury, loss, and damages. As part of the legal settlement, the defendant's insurer buys an annuity and names the injured person as the owner. Each structured settlement is different but, typically, the annuity provides periodic payments usually, monthly or annually for a defined period of time. The lifetime of the annuity owner, structured annuity settlement are given favorable tax treatment by the IRS, the income is tax-free.

Structured Settlement Payout Options

Are you receiving settlement payments, you may have an annuity structured settlement if you are receiving ongoing payments over a period of time. Structured settlements are paid by insurance companies to resolve a lawsuit or claim. You may not have had an option to receive a lump sum at the time of annuity settlement. These payments may take from 20 years up to a lifetime for you to receive all of the money in the settlement.

Your Option to convert your structured settlement annuity payments into a lump sum payout, either partially or in full even if you've been led to believe. Otherwise, it is your option to have access to your money right now. It is your option to use your money for the things you and your family need today.

The benefit of Structured Settlement

A structured settlement annuity provides you with a steady guaranteed tax-free income for many years. Because your payments are guaranteed it can help you manage your money over the long term. And answer questions like, will I have enough income to support myself and my family over the years. Will I have to pay taxes on my payments.

I will be able to choose when I receive my payments. The benefit of a structured settlement annuity includes guaranteed income that lasts for a specific time period. Including the option of income for life, the ability to offset inflation and all payments are tax-free. Additionally Pacific Life will send payments to you on the dates you select there are also many ways to structure the payments to meet your needs. You may include your spouse and dependents. You can cover medical expenses and arrange future payments for college. Talk to your attorney or structured settlement consultant today, about the benefit of a structured settlement annuity.

Where you receive all your money in one single check, a structured settlement lets you create a plan that works best for you. You can take the cash you need right away and set up future payments. When you want them with interest, and without tax fees for investment expenses. What's really important to you? Have enough income each month a college education or a secure retirement. Maybe it's just having money in the future when you need it. Whatever it is experts agree that if, it's really important it's worth guaranteeing. That's what a structured settlement does it guarantees your future.

Sell Structured Settlement Payments

These payments were intended to be helpful, but they might not always align with the current needs of the person getting them. Think about this, you receive an annual payment. But you have monthly rent to pay, or you need to make a down payment on a house, but you're stuck with monthly payments. Even you've got larger payments coming 10 years down the line. But you can actually sell your future some or all structured settlement payments buyer, and get money for the things you need now. If you're considering doing that it's important to pick the right company to work with.

Structured settlement sale must be approving by the judge or your local county courthouse. The majority of structured settlements transfer requests are approved. If approved, you should be sent your money within ten 10 days of receiving a court order approving the transfer by the funding company you choose.

Selling a structured settlement may seem like a quick way for some people to get the cash they want. But realizing that a structured settlement offers security and clear benefits is important, and selling a settlement should not be done lightly.

Why Do I Need a Structured Settlement?

You want a financially secure future which means making the right decisions about money today. So before your personal injury case is settled think carefully about an important decision you have to make. Should you take your settlement money all at once as a series of payments or a combination of the two the answer could have a big impact on your future electing a series of payments is known as a structured settlement annuity.

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