When you are in the middle of a personal injury lawsuit, your mind is constantly on the move 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 usually negotiates lower. Another important benefit is personal financial management. When a large sum of money is paid overtime, it is generally 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 liabilities.
Additional benefits:
- Simple tax planning
- Potential Income Tax Advantages
- Additional Annual Income
- Expanded Grant Opportunities
- protection budget
One of the common flaws of the salary structure is capping. For those who consider themselves financially savvy, not receiving their full compensation can be a major constraint, since they cannot use the money for 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 her own pocket. They have also already incurred lost wages at work; therefore, not receiving a full payment can be frustrating, as victims in this type of situation are simply trying to get the money back to where it was before the accident.
The result of a structured settlement
If you win your claim and an insurance company agrees to give you a structured settlement, you won’t get a paycheck right away. Instead, you will be paid a set 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 in many different ways. These payments generally start as soon as all the paperwork is processed; however, this time period can vary, and it can sometimes take up to a year to start receiving payments.
