Myths About Structured Settlements Debunked

Structured settlement brokers

Many people may not know the various financial products out there on the market today — there are quite a few, to be sure. But one financial product out there that has been picking up steam lately is a structured settlement.

What is a structured settlement? When a plaintiff settles a court case, they are awarded a large sum of money which is often in the form of a structured settlement lump sum. The plaintiff may decide that they don’t want this lump sum, and instead will opt for the settlement to be paid over time.

Structured settlements are mostly used in product liability or injury cases, but are not uncommon for those who win the lottery and want to receive payments in increments. More than a third of all personal injury claimants are offered a structured settlement, which can offer plenty of advantages for both parties involved. For the claimant, they receive structured settlement cash immediately after the case is settled. For the defendant and their liability insurers, they can save between 10 and 30% by choosing this option.

Advantages: The structured settlement cash that you receive is tax-free when it is properly set up. Structured settlement funding companies will help you set up what type of insurance package you want — whether it be a lump sum or an annuity structured settlement. You will always be guaranteed a source of income in order to help you pay your medical bills or for whatever other payments you need to make.

Disadvantages: Those who have a structured settlement are subject to receiving periodic payments for the rest of their lives. What happens if they need to put down a second mortgage? What happens if they need to send their child to college? Or they need to make a costly home renovation? Under these circumstances, people will choose to sell their structured settlement.

Myths about selling your structured settlement:

  • You actually don’t need to sell your entire insurance package for structured settlement cash. Your insurance company and lawyer will be able to determine how much immediate cash you need so you don’t have to sell the whole thing.
  • Who says you can’t invest any of the structured settlement cash? Investing in your home is an option, so is paying off your debts or funding a child’s education. No, you may not be able to invest it in the stock market, but there are other creative opportunities.
  • It doesn’t cost a lot to change your settlement into a lump sum. Instead, it costs far more to take out a loan with a high interest rate. When you decide to sell your structured settlement for a lump sum, there will be plenty of financial advisers on hand that will help you keep your costs down.

In the future, if you ever find yourself injured on the job or in a product liability case, opt for a structured settlement because you can always easily liquidate your assets.
Find more on this here: www.sellmyannuity.net

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