More and more people are choosing structured settlements these days. Most common are those who have been injured in a road accident and need money from his/her settlement immediately to pay for medical bills, and prefer to have it now than wait for a large sum of money that may come later.
You should carefully weigh the advantages and disadvantages before opting for a structured settlement. If you need money because you have recurring medical expenses on account of your injury or require prolonged physical therapy in order to recuperate, then a structured settlement might be appropriate.
The payment of a structured settlement usually comes from interest accruing on a purchased annuity. Although the terms of the settlement are quite loose, it is a binding one. Once you have signed the agreement, no more changes will be allowed at this point. Should you feel the need later to revise or make changes to the agreement because of some unforeseen expenses, you will need an attorney to change the terms of your agreement. You cannot use your structured settlement to obtain a new loan either.
Some companies will purchase the rights to your structured settlement for a lump sum of cash, and they will usually do it for the investment potential. What they will pay will be the current day value of your settlement amount, but but not including the invested sum. Rules do vary in different states regarding structured settlements. The amount received from structured settlements is taxable in some states.
If you are consulting an attorney to help you with your structured settlement, be sure you fully assess your situation and requirements carefully. Some things to consider before making a decision are:
What are the advantages and disadvantages of the program? Does the lawyer have a track record in negotiating structured settlements? Which is best for your own situation, a structured settlement or a lump sum of money? Will there be any tax benefit if you opt for a structured settlement? Will you get adequate money on time to cover all your expenses? How is it going to be in case of future contingencies, and if your requirement for money increases? Is it possible to change the terms of the structured settlement later? Can you decide later to change the program and opt for a lump sum payment?
It is wise to have a list of questions ready before you speak to a lawyer. The questions should be specific and relevant to your situation. Once you meet the lawyer, you can already gauge whether he/she is a good choice in handling your structured settlement. You should be certain that your lawyer has your best interest at heart, and if you are not sure, get a second opinion or consult with your own financial planner.
With all your questions completely answered, you are now ready to make an informed decision. Remember that this is a very critical decision to make, as it will affect your future and the future of your family. So be sure to enter into an agreement only if you are completely certain that you have made the right decision.
Interested in structured settlements? Check out www.allaboutstructuredsettlements.com and learn more about the advantages of structured settlements and other related subjects
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