Benefiting from a Structured Settlement | Penny Seeds

Structured settlements are designed to provide a steady stream of income over
a long set period of time, varying from a few years to as long as a lifetime. This
financial vehicle is provided to a plaintiff during a personal injury tort claim in
replacement for the lump sum settlement.

Once the structured settlement agreement is official, it cannot be changed into
a lump sum or any other type of agreement. This is because usually when a
structured settlement is created, an inflation increase is built in to provide a
better payment in your future years. The agreements are structured so that the
recipient can benefit from their structured settlement.

A benefit to receiving a structured settlement over a lump sum is that a steady
income stream is divided up for the recipient during the structured annuities
scheduled time period. In comparison, if bad investments were made with a
lump sum settlement, it would be likely that in the years ahead there would be no
profitable investment. A lot of money in an account looks better in appearance
now than it will after medical expenses and daily living expenses take its toll
through the years.

A structured settlement also benefits because it is a tax-free during its payout
periods on the federal and state level. Furthermore, you can use a structured
settlement in determining your income. A structure annuity can be used to
calculate your income when applying for a loan for a house or a car.

Another benefit of a structured settlement is that it takes pressure off of needy
family and friends consistently asking for your money. Many individuals prey on
people who have been awarded a lump sum of cash. Unfortunately, a lump sum
settlement can sometimes be dangerous if precautions are not taken to protect
a loved one who has just came into a lump sum of cash. Whereas, having a
structured settlement as a fixed income would provide a worry free environment

for the individual receiving the periodic payments.

Another benefit of a structured settlement is the expense that it will provide for
the defendant. In fact, many defendants will choose to settle out of court to
avoid the large attorney fees that is usually created by an ongoing court battle.
Although it may be true that the defendant could possibly win the case, the
defendant could also come out much farther behind if the choice was made to
settle out of court with a structured annuity.

Sometimes referred to as an insurance settlement, a structured settlement
annuity is a contract that is issued by an insurance company to fund the payment
of damages for personal injury over time. It can also benefit the annuitant in
the event of death, it guarantee?s the beneficiary a tax free payment or series of
payments over a set period of time.

There are numerous benefits to agreeing to a structured settlement. If it is an
option that you are currently seeking, find out if a structured settlement in your
future can benefit you.

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