In most cases, a civil lawsuit ends with the payment of money from one person or company to another. When it comes time to start receiving the money awarded to you from a civil lawsuit, you need to decide whether you want it all in a lump sum or in the form of a structured settlement. Whatever the amount may be, it is essential to understand the distinction between the two ways of receiving your money.
Receiving a lump sum simply means that all the money you receive in your lawsuit gets paid in one go. This is usually beneficial when you need the money urgently for medical expenses, repairs, etc. A lump sum is not inherently bad and often the better choice between the two, but there are times when a structured settlement is genuinely helpful.
The basics of a structured settlement are elementary. Structured settlements are an annuity that guarantees payments of your money over time. Structured settlements are tax-free, secure, and stable. Even though it may seem counterintuitive to want to get your money slowly after suffering injury or dealing with wrongful death, the benefits of a structured settlement should not get ignored.
If you are in need of assistance with your structured settlement annuity, we can help. We can help if you need to get structured settlement funding as well. Our financial advisors are here to assist you every step of the way. We are available 24/7, 365 days, and can be reached today at (844) 871-0628.
The Benefit of Financial Security
Consider the financial needs of your life at the time of settling the lawsuit. If you need a large amount of money quickly due to financial hardship or other financial obligations, then it would be wise to take a lump sum. If this is not the case, then a structured settlement can offer you financial security.
Winning a large sum of money is akin to winning the lottery. Coming into a large amount of money very quickly can often lead to mismanagement and will often attract the attention of those around you. As described by Nolo, you may have friends or family come asking you for money. Even if you do not have family and friends bombarding you with requests, it is also possible that you can quickly lose all the money on purchases or investments that are unwise.
Structured settlements prevent this from occurring by giving a degree of separation between you and the money you won. The money will be kept safe and get paid out to you over time. This payment system can ease the burden of financial responsibility off of your shoulders and discourage others from trying to obtain the money that is rightfully yours.
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Flexibility in Payments
The flexibility of payments is one of the great benefits of a structured settlement if you can dictate those terms. It allows you to have a significant amount of leeway in the timeframe of which you can receive payments. If you wish to defer your payments for a certain amount of time, ranging from months to years, you can do it. Whether you want payments to begin immediately or sometime down the line, structured settlements can work with your schedule and your needs.
What if there is an unforeseen event that requires you to access more money than what gets paid to you? Understandably, having a set amount paid out to you over time may seem restrictive. If properly set up around these scenarios, structured settlements can have terms that allow for adjustments and other changes to payment should any urgent situation arise.
Things like the cost of living changing, the price of medicine changing, and other types of situations are all covered by the flexibility of structured settlements. This flexibility allows a structured settlement to remain a safe option for financial stability without compromising its ability to cover all of your bases.
Guaranteed Stability in Structured Settlements
When you choose to receive your payments over time through a structured settlement, a great added benefit is the stability of the money you are receiving. Not only are structured settlements tax-free under 26 U.S.C. 104, but structured settlements are also protected from fluctuations that occur in the economy. In essence, even if the economy slumps or inflation rises, the payments you are given will not be affected in any adverse way.
Combining tax-free payments that grow over time without a failure due to the market or other external factors makes a structured settlement a great choice for stability. It is protected against the unpredictability of the economy while also granting the added benefit of increasing in value which is a win-win scenario.
Getting the Benefit of a Structured Settlement Today
Choosing between a structured settlement or a lump sum is going to depend on your situation. Unless you need the money urgently, a structured settlement is the preferable way to go so long as the terms are fair and benefit you. The money you are paid out will be tax-free, kept secure, remain stable, and will be available when you need it according to the needs of your life on your terms. Structured settlements are a great way for you to receive the money you won in your lawsuit.
If you find that a structured settlement pays out too slowly, Silver Dollar Financial can provide structured settlement funding to remedy that problem. Our expert team is ready and willing to provide any assistance that you may need in your settlement. Contact us today at (844) 871-0628. We are here to help.