By Ursula Huber on September 19 2018 11:35:10
Structured settlements first started to gain popularity in 1982 when Congress passed the Periodic Payment Settlement Act. This was introduced to allow settlements to be paid out over time in order to benefit both the party paying the claim as well as the victim. Those people who have had a personal injury due to an accident or who have had a worker`s compensation claim can benefit greatly by having the money from the settlement arrive in regularly scheduled amounts across a long period of time. A structured settlement is a good idea in most cases.
Structured settlements can be sold when there is a monetary emergency. There is an option of selling the settlement in parts, instead of opting to sell the whole settlement for a lump sum. The whole settlement needs to be sold only in case of dire emergency when the cash has to be raised immediately. Structured settlements can be sold as portions when money is required in smaller quantities and does not require the lump sum that would be available if the whole of the structured settlement is sold.
Structured settlement funding is the funding over a structured settlement, a settlement in which the reward is paid to the plaintiff over a course of time. The period of time will vary according to the merit of the settlement, often from two years to the remaining life time. Unlike pre settlement funding, structured settlement funding does not depend upon the assumed strength of the settlement, as the settlement value is already determined. More over, an annuity or government bond generally guarantees structured settlements.
In some cases where the structured settlement on periodic basis is no longer required, such as in cases of worker`s compensation where the medical bills no longer need to be paid after the individual is discharged from the hospital, selling off the remaining portion of the structured settlement can produce a tidy lump sum that could be used for other necessities.