Structured Insurance Settlement

April 14th, 2012 Leave a comment Go to comments

Benefits of a Structured Insurance Settlement

When faced with the decision about accepting a structured settlement, or selling the settlement to receive a large lump sum payment, there are a few things to remember. For many reasons, it’s found to be a better decision to accept the structured settlement.

Here are the benefits of choosing the structured settlement option:

1. The money received from a structured insurance settlement is not taxed by the IRS.

2. When you receive money over a period of time, instead of in one large lump sum, you usually have less problems with family and close friends constantly trying to borrow money.

3. Recipients of structured settlements don’t usually have the problem of where to invest large sums of money. The money is used for their day-to-day living expenses.

4. Very often, when a structured insurance settlement is offered, there isn’t a worry about having to go to court. It’s usually settled out of court, and the person who is being offered the structured settlement saves court costs.

For many people there is a lure of receiving a big lump sum of money. This lure makes people really consider selling their structured settlement for cash. In many cases, the structured settlement can really be the better of the two choices.

Often times, when people have a big sum of money they forget that the money isn’t going to last forever. They begin going on a spending spree and the money is gone before they know it. With a structured settlement, you are sure to have money for the future and there isn’t the worry about spending it all at once.

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FAQ – Frequently asked questions about structured settlements.

1. Can structured settlements be considered as collateral for a loan?

It is not considered a direct form of collateral, but many banks will accept it as a form

of income which will be helpful when making large purchases such as a new home.

2. Wht is a structured insurance settlement?

A structured insurance settlement pays the person who has won the lawsuit settlement over a period of time, instead of just paying the person in one large lump sum.

3. Will I receive interest on money I get from a structured settlement?

The interest that you get from your financial settlement includes any interest that you

would get from the settlement, and that is considered by the IRS tax-free.

If you are involved in a wrongful injury case and will receive a structured settlement,

sit down and ask your attorney informed questions. Make sure that you understand the

answers and are completely satisfied with the choices that are presented to you.

 

Tips for Insurance Settlements

The primary reason a person carries insurance is to protect themselves from financial loss in case of an accident. Many unforeseen accidents can occur, which could be catastrophic in nature. Your best situation in case this occurs would be to educate yourself about how Insurance Settlements work. Insurance Settlements are structured to account for your loss of wages, future loss of wages while taking in consideration for you future medical needs in relation to the accident.

Remember that the negotiation of insurance settlements should also be done with reputable legal council specializing in settlements.

  1. GanStan
    June 14th, 2010 at 06:39 | #1

    I have a friend that is in the middle of a wrongful injury case. He fell off of a scaffold at a refinery in south Louisiana. He is seriously injured and he needs to plan for his long term financial future. Who knows what is future medical bills will be. How can he be sure to protect himself? Will his attorney look worry about anything more the trying to settle quickly for an immediate settlement? Please let me know how to make sure every one is protected.

  2. JaniiK
    June 15th, 2010 at 06:24 | #2

    I father was an attorney that always took care of his clients. He cared very much for every client that he represented. He always defended the injured and made sure that he broguht in a structure insurance settlement attorney to represent his clients best interest because he very well knew that the party that caused the accident had there team trying to get the best deal for there clients. Always have an attorney on your team that specializes in structured settlements. He will be able to calculate your long term medical needs as well as income to replace your work income.

  3. GanStan
    June 16th, 2010 at 08:11 | #3

    I was involved in a life altering accident 25 years ago and I had no way of referring to any internet for information. I only new what I was told by the so called financial experts that focused specifically on personal injury settlements. The fact remains that back in my day there were only lump sum claims and nothing structured at all. I personally lost all of my money over the years from lack of money management knowledge.

    Let this serve as advice to be work with someone experience and someone you trust when it comes to your future.

  4. June 21st, 2010 at 11:25 | #4

    Is this info really reliable? Because i have the opportunity to invest in Structured Settlements!

  5. JacyKat
    June 22nd, 2010 at 22:18 | #5

    Sorry that you were in an accident 25 years ago. Managing money can be very difficult when your getting advice from every relative you have. Who do you trust when a settlement comes around. You need to make sure you deal with a large reputable company. In my opinion small money management companies are to risky these days.

    I you look at all of the pyramid schemes that have pretended to manage your money, it’s a horrible situation out there. Deal only with highly reputable companies and even that can be risky.

    One reason structured insurance settlements look so attractive is because they take a lot of the risk out of possibly loosing your lump sum settlement money in a scam or bad investment advice or other unforeseen things that can allow you to loose all of you money.

    Always make an error on the side on caution when it comes to your financial future.

  6. AttorneySeeker
    June 29th, 2010 at 10:13 | #6

    Thanks for the good info. I will consult my attorney and start asking better questions.

  7. Kayla
    June 30th, 2010 at 18:35 | #7

    The information is very helpful. Many people get confused when dealing with attorneys and personal injury cases.

  8. kaylaLee
    July 12th, 2010 at 08:15 | #8

    Thank you for posting the latest info. It’s going to really help me on my case. Thanks.

  9. July 24th, 2010 at 07:47 | #9

    Nice design, what is the name of template ?

  10. August 3rd, 2010 at 15:12 | #10

    You post informative articles, bookmarked for future referrence !

  11. August 3rd, 2010 at 17:04 | #11

    A reliable, certified buyer of structured settlement payments can offer you best price for your annuity. Taking many variables into consideration, he or she will offer a fair value for your settlement, frequently called a “note”. By then you can come to a decision which of various alternatives is most effective for your financial condition.

  12. February 15th, 2011 at 02:10 | #12

    Tell us more about the insurance settlement?

  13. CCLee
    February 21st, 2011 at 21:48 | #13

    I talked with my attorney the other day and he was assuring me that many insurance settlements are a result of really laying out the long term cost of health care and lost wages for the defendant.

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