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Because it is tailor-made for individual cases, the structure may also include some immediate payment to cover special damages. The payment is usually made through purchase of an annuity from a Life Insurance Company. Subcontractor A trade...
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Structured Settlements Offer Advantages over Lump-Sum Payments
A structured settlement, which offers injury victims cash payments through a long-term annuity as compensation for their damages and medical expenses, offer a number of possible advantages over payment in a lump sum. While the lump sum payment is the traditional way for responsible parties to pay accident claims, the structured settlement offers payments over the span of an agreed-upon period of time. This length of time may span from several years up to the remainder of the life of the injured party, depending on the severity of the accident, the amount of money involved, and the agreement reached between the two parties.
Depending on the specific circumstances of the case, structured settlements can have numerous advantages over a lump-sum payment:
They are tax free. Thanks to a 1982 change in the Federal tax code, payments on a structured settlement are free of state and Federal taxes. The paying party funds the settlement through the purchase of an annuity which earns the interest to fund the continued payments. This is not the case with a lump-sum payment, which the injured party must invest themselves. Any interest earned on those investments are taxable.
They are potentially safer. Most people who come into a large sum of money suddenly find that they are quite popular with long-lost relatives, unscrupulous purveyors of investment schemes, and good,
old-fashioned thieves. By receiving payments in substantially smaller amounts, the beneficiaries of a structured settlement have far fewer worries about having others take advantage of them, which could leave them both poor and without adequate medical care.
They are simply less trouble. It’s difficult enough to adjust to changes in your life if you are seriously injured without having to also take the new responsibility of investing and managing a large sum of money. Not only must you invest the money, but you must invest it wisely, knowing that it must continue to fund your living and/or health care expenses. The regular payments of a structured settlement, along with their tax-free status, simplify day to day living considerably.
While they are not ideal for everyone, particularly those who are experienced investors or those who need a large sum of money at once for immediate medical expenses or the purchase of a home, structured settlements can offer a simpler, safer payment solution for many people who are victims of an accident or injury.
About the Author
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.StructuredSettlementHelp.com/ and http://www.HomeEquityHelp.net/
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National Structured Settlements Trade Association (NSSTA) |
Provides structured settlements using periodic payments to resolve claims. |
www.nssta.com |
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Structured Settlements |
Setting up structured settlements for personal injury claims. |
ilf.hartfordlife.com |
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Structured Settlements, Structured Annuity, Structured Settlement ... |
Full-service plaintiff structured settlement firm since 1986, providing services and strategies for personal injury lawyers and clients during the ... |
www.structuredsettlements.org |
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Structured Settlements | Annuity Purchasers |
Structured Settlement Buyers. Purchasers specializing in structured settlements and lottery winnings. Site contains attorney, broker and investor ... |
www.ppicash.com |
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Structured Settlement Cash for Structured Settlement Annuity ... |
Annuity Transfers Homepage - Buyer of Structured Settlements · Home | Sell Your Payments | Brokers | Investors | Testimonials ... |
www.annuitytransfers.com |
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EPS Structured Settlements Group: A Structured Settlements Company ... |
EPS Settlements Group is located in Denver, Colorado and is a founder of the structured settlements industry. |
www.epssettlements.com |
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Mckellar :: Structured Settlements |
News. ... Skip Intro Always >> |
www.mckellar.com |
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The Structured Settlement - What You Need To Know |
About two thirds of states have enacted laws which restict the sale of structured settlements, and tax-free structured settlements are also subject to ... |
www.expertlaw.com |
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Settlement Capital Corporation - sell structured settlements,sell ... |
Direct purchaser of structured settlements and other annuities. |
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John Hancock Insurance and Financial Services :: Explore Our ... |
A structured settlements annuity provides injury victims or the victim's ... John Hancock Structured Settlements and Attorney Fee Annuities are just two ... |
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Structured Settlements - Prudential Financial |
Your company may become liable to pay a settlement as the result of a legal proceeding. A Structured Settlement Annuity provides ongoing periodic payments ... |
www.prudential.com |
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Finance - Structured-Settlements Ezine Articles |
EzineArticles.com allows ezine or email list publishers to upload or download free expert content that can be used within email newsletters or websites. |
ezinearticles.com |
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Understanding Structured Settlements: A Novice's Guide to the ... |
Learn what a Structured Settlement is in plain English. Find Structured Settlements company, payments, broker, annuity and loan info. |
www.noendpress.com |
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structured settlements, personal injury, annuity, disability, accident |
Structured Settlements allow income to be spread over time, which is safer ... Structured settlements are often ideal under the following circumstances: ... |
www.structuredsettlementhelp.com |
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Structured settlement - Wikipedia, the free encyclopedia |
Structured settlements were first utilized in Canada and the United States ... Structured settlements are now part of the statutory tort law of several ... |
en.wikipedia.org |
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Structured Settlement vs. Lump sum - What to do? |
More and more claimants are choosing structured settlements. ... Most structured settlements come in the form of an annuity, which is sold by a third party, ... |
injury.freeadvice.com |
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Welcome to The Halpern Group, experts in structured settlements ... |
Offers structured settlements, consulting and negotiation services to attorneys representing injured clients. |
www.halperngroup.com |
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Structured Settlements Leader J.G. Wentworth, JG Wentworth ... |
Structured Settlements Leader JG Wentworth, JG Wentworth Settlement Funding - More than 25000 individuals have come to JG Wentworth to finance their dreams ... |
www.jgwfunding.com |
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DOG BITE LAW - Structured Settlements |
For those reasons, changes were made to the Internal Revenue Code that enable knowledgeable attorneys to create "structured settlements." ... |
www.dogbitelaw.com |
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Structured Settlements Law – Lawyers, Attorneys & Free Legal ... |
I am confused by the number of internet sites that plug offers of structured settlements, sale of structured settlement annuities, and attorneys who offer ... |
injury-law.freeadvice.com |
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