By Lisa Werner on September 17 2018 14:16:55
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.
Another reason is because professionals were hired to advise and administer the money appropriately. Without some knowledge of financial endeavors, the victim may have hired someone incompetent or unreliable. The money would not be invested wisely and gone before they knew it. Another common reason is the victim relies on assistance from family members thinking they would have his best interests at heart. Unfortunately, this is often not the case and greed gets the better of the family member. A structured settlement reduces the risk of these issues substantially.
For anyone who has any type of guardianship, a structured settlement is also a perfect solution. For example, if someone dies as a result of an accident through no fault of his own, a settlement may be awarded. However, the settlement is going to the victim`s family as opposed to the victim. The money may be used for funeral expenses and for the care of the surviving family, especially if the victim was the provider of the family`s income. Spouses and children are generally the beneficiaries of a structured settlement. Minor children can especially take advantage of the benefits of a structured settlement. Their housing, food and other every day expenses will be ensured. Plus, very often their education and college expenses will also be taken care of so they can lead a productive life even without the assistance of their loved one.
With regard to the funding agency, structured settlement funding has many advantages over other modes of settlement funding in terms of managing larger amounts of cash, tax exemption, flexibility, and stability. It is also possible for the person selling his settlement to be taxed for the amount he receives through the sale, although he might have been tax free prior to transfer. It is better to consult a lawyer before signing a contract with a structured settlement funding company as he can provide the required legal assistance. A structured settlement funding company which buys a settlement does that only for profit and the profit comes from the payments that otherwise the holder of the policy would have received. Major disadvantages of structured settlement funding are the high commissions on the purchases by the companies and in equal payments; inflation causes reduction in real value of payments.