Every advantage you have in life can affect your life tremendously. Just as there are many advantages to selecting a structured settlement over a lump sum award.
One definite advantage is that a structured settlement will provide for the future needs of the injured party. A majority of the time, a structured settlement will provide the injured party’s personal and medical needs throughout their life.
In comparison, lump sum awards often end up misused in bad investments, overuse, and the ups and downs of the stock and investment market. Structured settlements can be the best and safest means of making sure an injured person, who awarded through the court, is provided for throughout their lifetime.
A second advantage of structured settlements is that they are a tax break. Annuity payments in general are untaxed, leaving more money in your pocket. On the other side, lump sum payments can incur a sizable tax burden.
Flexibility is another advantage of structured settlements. There are no two structured settlements that are the same. Present and future needs of the injured party are taken into account in each structured settlement. They are also constructed to provide more funds for the claimant later in life or if the injured party’s medical condition worsens. Structured settlements provide a realm of possibilities since it is a private agreement between the claimant and the defendant.
Additional advantages are that your money cannot be lowered as a result of a divorce. And a lot of people rely upon social security toward their retirement, which cannot also be lowered.
In conclusion, a structured settlement can result to increasing the net amount of award money for lots of people. There are many unique advantages to structured settlements that assist in determining that amount. The most significant advantage considered by many who have constructed a structured settlement, is that it is guaranteed to provide for your future needs. In today’s economic downfall, that is a huge advantage.
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