Free Personal Finance & Budgetting Articles

Professional Authors - Professional Articles



Personal Finance Resources - Understanding What a Structured Settlement Is!


The process of the structured settlement has been around for decades and have basically become the actual choice in most legal cases. Probably the most common kind of structured settlements result from many different workers' compensation cases or very severe job related health injuries or issues.

If managed carefully structured settlements can be a really good options for the claimant but in some cases it isn't the best option. If you understand the background as well as the purpose of these settlements may help a claimant to make the best choice about this kind of a settlement.

First off, these kinds of settlements were designed to pay out funds periodically and over a certain amount of time instead of handing out the settlement all at the same time. There are two reasons for paying the settlements this way. One being the person or party that has to pay the settlement has the choice to provide payments over time instead of all at once and the claimant can be assured on ongoing payments that will arrived at a scheduled time. Even in some cases the settlement can be passed onto an heir if the claimant dies before all of the payments have been paid.

These types of settlements first came about and were used in the United States back in the 70's. Up until then, people would receive their settlements all at once. Originally these kinds of settlements were only offered in cases where the claimant was owed a very large sum of money after some sort of major injury. Over the past 30 or so years, these types of settlements have become the normal way of handling settlements instead of being the exception to the rule.

There are two different kinds of structured settlements. The first one is a basic financial arrangement. This is where the party who has to pay the settlement will give periodic payments to the claimant. Whatever the terms are of the settlement will indicate how often they have to pay the claimant.

The other variety comes in the form of insurance annuity payments. The money from the settlement is used to buy life insurance annuities that an insurance company will hand out to the claimant over a certain amount of time.

In some cases the amount of time to get the settlement paid will have a certain year in which the payments will stop coming. Other situations the claimant can request that they get payments every few years. For example the claimant will receive a certain amount of money every 5 years instead of perhaps on a monthly basis.

These types of settlements have both pros and cons just like anything. Probably the biggest pro would be that the payments are subject to very little taxation and sometimes they don't even get taxed at all. These kinds of payments also help the claimant have a more secure financial life instead of letting them have it all in one large sum.

The biggest con is that the claimant sometimes feels that this kind of settlement is a bit unfair and keeps them locked int payments when they might rather have all of the money up front so they can do what they want with it, like investing the money in property or other types of money making investments.



Comments
jak usunąć ciążę w domu commented on 15-Feb-2017 01:20 PM
I’m a member of a gym [url="http://www.moriborvidek.com/index.php/bormustra/7-aktualishirek/160-csokakoi-borverseny-eredmenyek-2013#considerate" rel="nofollow"]buy viagra online medication[/url] The United States has been putting pressure on Afghanistan to finalize a bilateral security agreement (BSA), which will mandate how many, and where, U.S. soldiers will remain once the NATO mission ends.

Anonymous commented on 02-Jun-2017 09:56 AM
This is a really good tip especially to those fresh to the blogosphere. Short but very precise info Thanks for sharing this one. A must read post!

strony online commented on 02-Jun-2017 10:15 AM
I’m sure many people would like to see and hear Mr. Trump be more decent according to their personal definition of decency. (The same holds true for other politicians known for their even worse off-camera indecency.) Unfortunately, the building is on fire and we need someone who can lead us out of it. The more decent candidates have failed. Mr. Trump has stepped forward not to take us on a date, but to lead us out of fiscal & constitutional indecency and greater foreign-relations & economic disasters. The pretty options have passed us by. We need to ‘get ready to rumble’.

australia drug test commented on 05-Apr-2018 04:36 PM
This posting has supplied me a few good ideas for my new blog. It's always wonderful to come across fine content that encourages new ideas, thanks.

Central Station Monitoring commented on 12-Jun-2018 11:22 PM
I have been researching this subject for about 2 weeks at this point and this is really the 1st post which makes perfect sense. How come it's so hard to locate reasonable tips when it comes to security and safety these days? Definitely value the energy you invested getting your concepts in to words so newbies like me personally can take action. Maybe there is a part 2 on your article? Thank you again!


Post a Comment




Captcha Image






BLOG TAG CLOUD
power of attorney banners grocery list major financial issues bad credit debt settlement lower tax party supplies finance tips planning car finance time management deductions quiet time self help gross pay finances estate planning tight budget finance tips stop procrastinating retirement planning social security number financial power financial basis money conscious coupons community property personal finances interest rate meat specials net pay wills reduce tax good credit managing time lease takeover assessor estimate compare prices different models half price household tips financial agent local dealer research va loan possibility enjoying stop paying computer home equity loan pay bills loan possibility law firm certain stocks trade in value party theme estate planning lawyer voluntary sticker price poor credit qualified veteran handling problems credit policies debt management secure finances budget property tax car loan estate planning errors property value repair credit afford a car personal bankruptcy best credit salvage groceries invitations car lot car insurance getting a loan car sites financial crisis miss payments financial issues reduce interest start investing payment range W-4 forms birthday party debt management company new car smell car payments enough money structured settlement home improvement loan payroll software package emergency spending car dealer balloons secured loan car lease dream veteran loan rebates car payment retirement years grocery shopping owe money top preparing dinner chapter 7 car finance company attorney printer retirement fund fast paced family member medicare sticker shock dealership spend less overspending financial affairs personal finance tips discounted items common estate planning periodic payments mortgage payments right estate planning lawyer improvement loan manager specials money issues reality legal power home loan need maternity care bankruptcy true market value credit score unsecured loan cash flow saving money personal finance actual loan income tax buying a home present car major debt stock market store ads insurance company shop online medical history save money cash gross income homemade food avoid personal bankruptcy getting health insurance debts payroll personal finance resources specials new car own business get rid of debt make a will health insurance payment plan get help credit insurance test drives quick sale income decorations creditors leasing company employees



Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
Finance