Structured Settlements

2007-04-27 07:29:02

( Financial )



Obviously, getting involved in an accident will burn a hole in your pocket. The most economical way out for some people is to have structured settlements. Structured settlements will actually protect not only the victim or victims involved in an accident but also the person who caused the injury.

Structured settlements are cash settlements made via a system of annuity. This is agreed upon by the defendant and the injured party to ensure life settlements especially if the injury will be felt over a lifetime.

Aside from the obvious benefit the injured person can derive from structured settlements, what will be the benefit of such a settlement to the defendant? Since the defendant will not be required to pay out a lump sum to settle the case, the defendant will have the chance to even out the payment and settle it over an extended timetable.

However, structured settlements can only be agreed upon depending on the severity of the injury caused by the defendant. Some of the cases where structured settlements can be expected are the following:
1. The injured will have to undergo several medical procedures over a long period of time thereby incurring rising medical expenses.
2. The injured will have to be incapacitated for a long period of time thereby depriving him or her the benefit of an income.
3. The death of the injured which consequently is creating a loss of a permanent source of income for the surviving family.

For the defendant, structured settlements are often less tedious ways to undertake rather than court settlements. Structured settlements are also exempt from state taxes.

For the injured, having structured settlements assure a steady future. Aside from getting a regular allowance for a long period of time, they do not have to worry about how to procure money or how to invest money since they will be receiving money anyway.


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