Did you know that statistically speaking, every car user will have a collision every 18 years? While many of these are simple fender benders, others are more serious, with victims requiring months or years of medical treatment.
If you are waiting to receive a financial settlement following an accident of any kind, what do you need to know? Should you take a lump sum or consider structured settlements as a solution?
You may not be aware of all the benefits of structured settlements. Why not read on to find out more?
How It All Works
If you agree to take a structured settlement, instead of receiving a single lump sum, you will receive smaller payments over a longer period of time. While this might sound less fun than a huge initial payout, it could mean that you will receive payments each week or month for decades.
The key is to work with professional legal representatives, such as JG Wentworth, to design a settlement plan that works for you.
But what kind of advantages could a structured settlement plan have for you?
Initial Lump Payment
If you have been in an accident, you may not have worked for some time, and you may be increasingly aware of the number of medical bills you have. So what should you do if you can’t afford to wait a long time for aid?
Simply include in the agreement that you would like a large lump sum in the beginning, but that you want to receive the remainder of the settlement in smaller amounts in the months and years to follow.
These agreements are flexible and can provide short term and long term financial support.
Cover for Extraordinary Expenses
You may agree to a settlement plan today, but also be aware that anything can happen in the years to come. How can you plan ahead for the unexpected? By including annual lump sums in your structured settlement plan.
You can use this annual payout to cover unexpected medical expenses, college tuition, or as a downpayment on a car.
Be aware that a structured settlement has significant tax benefits. However, this may be affected by any lump sums that you receive.
Payments on Delay
Do you have enough money to get by right now, but worry about the future? In these sorts of cases, some people choose to delay any payments until an agreed date in the future. This could be after graduation or their date of retirement.
This ensures that they have a steady income when they need it the most.
Everything You Need to Know About Structured Settlements and More
If you are in line for a settlement of some kind, you will need to think carefully about how you will receive it. Structured settlements are a great solution to ensure that you always have the income you need at the time you need it.
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