By Yvonne Winkel on September 19 2018 11:51:59
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.
There are many long term benefits to having a structured settlement. First, the person who was injured and awarded the settlement is likely suffering from a debilitating injury that will forever affect their life and livelihood. This could be anything from a condition that makes life uncomfortable to a serious crippling injury that forever changes the person. Regardless of the severity of the injury the victim has to become used to living their life in a different manner. Adding to this the stress of dealing with a large sum of money they are not used to can make the transition even more difficult.
In the simplest of terms, a structured settlement is a payment to the injured party made in regular installments over a period of time. This is different than getting a cash award in a lump sum up front. For example, if a person was in an accident and it was ruled that the other party was at fault, the other party may have to pay damages. If the amount was one million dollars, instead of a check being cut for one million dollars, it would be paid out in monthly installments over a period of a few years. For instance, a one million dollar settlement paid out monthly over ten years would mean a check paid to the inured party in an amount a little over eight thousand dollars per month. A structured settlement can vary as to how it is paid out. Some forms of structured settlement are paid out monthly and others annually.
A structured settlement is not the answer for everyone. Some victims will prefer and benefit from a lump sum payment. However, there are very specific cases where a structured settlement is ideal for the victim. This generally occurs when the victim is in need of long term or permanent care. When an accident occurs that leaves a person unable to work and earn money for themselves over a long period of time, they will need the funds to care for themselves and whatever medical care is necessary. Whether it is an injury that will take a very long time from which to recover or a permanent disability that will prevent the victim from working for the duration of his life, a structured settlement is ideal in these situations.