A structured settlement is when you are owed an amount of money, which is paid to you in monthly installments. Structured settlements or “periodic payments” are usually a result of court rulings that order companies or insurance providers to pay you an amount in a timely pattern. The money you receive is designed to assist you financially.
Choose your payment schedule for your structured settlements carefully, as for most part, the structured settlement payments can range from every day up to once or twice every two years or more. If you have a structured settlement benefit from having a structured payment deal, you can choose to be compensated in one lump sum because of the tax policy.
You must, however, be aware of the tax guidelines in your country as it relates to receiving structured payment settlements. Structured settlements are a part of the tort law of several countries, including Australia, Canada, England and the United States.
If you are considering purchasing structured settlements as investments, assess the reputation of the broker that you are dealing with. It is also recommended that you consult with an attorney prior to entering these transactions.
Structured Settlement Loans
Structured settlement loans are very encouraging to victims of car accidents and road disasters. You may be strapped for cash and have no way of obtaining any, while your case is being tried in court. These structured settlement loans are granted to those who are expecting a certain amount of money in the form of settlement. Your structured settlement loan can be easily be applied by certain creditors who would take the settlement claim as a form of collateral.
A disadvantage of structured settlement loan is you will not receive the full amount of your actual settlement. The lenders will take fees and also a percentage of the original loan, as it becomes a profitability gain for them.
You can imagine the complication that is involved with your structured payments. It is important to pay careful attention to the terms and provisions of your structured settlement agreement. Therefore, it would probably be in your best interest to consult with a qualified and experienced structured settlement advisor. If you need the money now you can sell your settlement to a financial service firm that purchases structured settlements and annuities from individuals like J.G. Wentworth.
A structured settlement payment can be beneficial to young children, as the settlement can be used to pay for their college education and other related expenses. If you are a person with ongoing medical needs or disability with long term special needs your payments can come in handy.