Basics of a Structured SettlementA structured settlement is a small payout done over time. Because of this, there are only certain times when you would want to take the risk that the company will keep paying its bills to you. You would not, for example, choose a structured settlement when a gigantic company with lots of money did something serious and immediate, like caused your child to die!
However, there are times when a structured settlement is your best option. Let's say you have a case against a church where they do not have a lot of money on hand - but they do get a steady stream of income. Let's say that it was a back injury situation, where you are going to be in pain and out of work for years and years. This would be a situation where you need the money in a long term basis - and the people who are paying you will have access to the money slowly over many years.
Or, in another example, let's say that the person at fault is a parent of a child. The child is going to need therapy and support for the next 10 years of their life, until they turn 18. The parent is not very wealthy and cannot afford a lump-sum payment right now to pay for those bills. The structured settlement will help ensure that the bills are paid properly by the person who is responsible for the situation.
Finally, in a way, a structured settlement helps make sure that the money is actually THERE for the recipient during the entire length of time it is needed. Let's say a child's parents are killed in a horrible accident, and the company responsible owes the child a great deal of money. If the child was just handed all that money right away, misguided guardians could completely spend it all without meaning to long before the child ever got to high school or college. A structured settlement helps ensure that the money is available, each year, to pay the bills that come due in that year.
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NOTE: I am not a lawyer or doctor, please always talk to professional advisors to get personal advice on your situation.
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