A Guide to Structured Settlements

Author: Steven Ross

Article:
Although a common occurrence, most people have no idea what structured settlements are. That's our focus in this article, to go over the definition of structured settlements, who they can benefit, and how to make them work for you.

There are all kinds of reasons why people may be awarded settlements. Sometimes the insurance company awards them, or they win a court case, due to negligence, discrimination or some other factor. Whatever it may be, you can receive the sum of your claim in a variety of different ways.

Commonly, people think your sum is awarded in one large payment. This is often a smart way to take your settlement, if it is small, like $10,000 or less. But for much larger sums, there are many different alternatives you should at least consider.

Oftentimes it is not wise to take a large chunk of money all at once. Taxes on large sums of money may drive you crazy. But more importantly, most people will mismanage large chunks of money if they've never had them before.

These are just two of many reasons why you should consider an alternative to taking your settlement all in one sum. A structured settlement is an alternative to that.

With a structured settlement, your offer the option of being paid your settlement in installments, over a certain length of time. You can even create the payments to cover you the rest of your life, if your damage will affect you for the rest of your life. This way you know you will have a guaranteed source of income every month.

Dividing your payments into equal installments is not the only option, regarding structured settlements. Another option is to receive a large sum up front, with the balance being paid in equal installments. This is a great option for people who need to pay off a large debt, and still want to enjoy the benefits of still receiving a stable monthly payment.

Inflation is taken a consideration when structured settlements are set up. This way if you're receiving payments in 10 years, they will have the same buying power as they do currently.

To sum it up, these are your options that are involved when being awarded a large sum and setting up a structured settlement. Compare this to receiving your money all at once. It might just be more wise for you to set up a structured settlement.

About the author:
Author Steven Ross is a long-time Structured Settlement fan and can help you with all your Structured Settlement needs. For advice visit his new site at Structured-Settlement-Report.

Article Created: 2010-09-25
Article Updated: Not yet updated.