Is Structured Insurance Settlement Right For You?

// June 26th, 2010 // Finance, General, Legal

If you have to sue someone because they were negligent and caused you to be injured, we you win your suit you may be faced with the option of do you take a lump sum payment or get a structured insurance settlement. A structured insurance settlement is when you agree to take periodic payments instead of taking one large payment for damages. Usually an annuity is taken out to guarantee the payments.

There are a lot of reasons to take a structured settlement versus a lump sum payment. One of the biggest reasons is to make sure you will have money when you need it. It could be a big temptation if you got a lump sum payment to spend the money on things that you don’t need and when the time comes for you to purchase something you really need, you wont’ have the money. So, opting for the payments over time may save you from you.

Most people don’t realize that if they need a lump sum of cash in the future, most states allow you to sell your future payments for a lump sum of cash now. There could be any number of reasons you could need to sell structured insurance settlement. You may want to buy a house or you may have some medical emergency. It is a secure feeling that if this situation arises you will have an answer.

Consult with your lawyer and financial adviser about what is best for you.

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