By Vanessa Richter on September 19 2018 11:40:52
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 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.
Structured settlements ensure periodic payments of a lump sum, and the lump sum can be released by selling a part or whole of the structured settlement. However, when a structured settlement is sold for a lump sum, the amount received is usually considerable less than the market value or lower than what would be received in monthly installments, but they do provide the option for sale in case of financial necessity.
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.