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’.


Post a Comment




Captcha Image






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



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

Finance Blogs
Finance