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Structured Settlement
Annuities | Annuity Purchases | SellAnnuities | Structuredsettlement
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Take
A Structured Settlement Annuity
Or One-Time Lump Sum Payment?
By: Greg Smith
If you are involved with a legal decision, financial claim or
insurance arrangement, the financing process to settle and resolve the
claim can often take two forms. Either a one-time lump sum payment, or
a long-term periodic series of deferred structured settlement
payments. But which is best for your situation?
A structured settlement involves a financial or insurance
arrangement which includes a periodic stream of payments, that a
claimant or plaintiff accepts in order to resolve a personal injury
claim or other legal case. They were first utilized in Canada and the
United States during the 1970s as an alternative to lump sum payments
and are now part of the statutory tort law of several common law
countries. |
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A
structured settlement is a deferred payment method for
compensating injury victims, and is a voluntary agreement between the
injury victim ( plaintiff ) and the defendant. The plaintiff will
receive the monetary payout over the course of a number of years
through this deferred payment agreement. |
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Under a structured settlement, an
injury victim does not receive compensation for their injuries in one
lump sum, but rather, they will receive a stream of tax free payments
designed to meet future expenses and living needs. This type of
compensation method is becoming more popular in a wide variety of
legal cases.
The benefits of a structured settlement over a lump-sum payment
include the security of a guaranteed long-term income with deferred
payments that are exempt from income taxes. The federal government
encourages the use of structured settlements in personal injury cases.
Structured settlements also attract support from plaintiff attorneys,
state attorneys general, legislators, consumer and disability
advocates.
Structured settlements can be ideally suited for cases with:
• Persons with disabilities
• Guardianship cases that may involve minors
• Workers compensation cases
• Wrongful death cases
• Severe injury case
Want to Sell Your
Structured Settlement?
Not everyone benefits from a
long-term payment situation and some may want or need a lump sum
instead. The owner of a structured settlement, such as
lottery winners, medical, insurance, accident and lawsuit settlement
owners, can often sell their rights to the deferred payment stream, in
exchange for a one time lump sum payment from a variety of financial
institutions. All situations are different, and as with any financial
or legal issue, you should always consult your accountant and
attorney. |
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Structured Settlement
Annuities | Annuity Purchases | SellAnnuities | Structuredsettlement
|