When you are in the middle of a personal injury lawsuit, your mind is constantly racing with questions about all the possible outcomes of your case. Although you may have an experienced personal injury attorney on your side fighting for your rights to compensation, it can be difficult to put your mind at ease until the case is fully resolved.
Many people are worried about their settlements and wonder how they will get paid in the end. Questions like “Will I get all my money at once?” and “Can my compensation be awarded as a structured payment?” are common concerns in most personal injury claims.
Structured Settlements
A structured settlement is an agreed-upon periodic payment plan in which the beneficiary receives a fixed amount of money over a specified period of time; and are a common result of a personal injury settlement. There are advantages and disadvantages to structured payments, depending on your particular perspective.
The number one benefit of a structured settlement is that you generally receive more money overall. In a lump sum payment, the amount is usually negotiated lower. Another important benefit is personal financial management. When you pay a large sum of money overtime, it’s usually easier to manage your finances, pay bills, save money, and maintain a positive financial portfolio. It can also be especially beneficial in terms of tax obligations.
Additional benefits:
- Simple tax planning
- Possible advantages of income tax
- Additional Annual Income
- Broader Grant Opportunities
- protection budget
One of the common flaws of the salary structure is limitation. For those who consider themselves financially savvy, not receiving their full compensation can be a huge constraint as they are unable to use the money to make lucrative investments. In other cases, a personal injury victim has already paid all of her hospital bills, medical bills, and other related expenses out of pocket. They have also already incurred lost wages on the job; therefore, not receiving a full payment can be frustrating, as victims in this type of situation are simply trying to return the money to where it was before the accident.
The result of a structured settlement
If you win your claim and an insurance company agrees to provide you with a structured settlement, you will not receive a paycheck right away. Instead, you will be paid a fixed amount over a set period of time. The terms of structured settlement agreements vary from case to case, and payment amounts and schedules can be set up in many different ways. These payments generally start as soon as all the paperwork is processed; however, this time frame can vary and can sometimes take up to a year to start receiving payments.
