A structured settlement is when the injured person in a personal injury case receives their compensation via periodic payments over time rather than in one lump sum. While the Periodic Payment Settlement Act made these arrangements more popular in the hope of helping victims hold onto their money for longer rather than spending it all at once, the result often benefits the at-fault party more than the injured person. Regardless, structured settlements are often tied to an annuity, which is an “insurance polic(y) that behave(s) like investments,” paying out over time, according to Debt.org. Essentially, the annuity is a vehicle for continued payments in installments. While often used for retirement purposes, this feature makes annuities the suitable choice for a structured settlement.
At Silver Dollar Financial, we think it’s best if you have control of all your money. The government’s paternalism assumes that you are unreliable and cannot be trusted with your cash. This is not only insulting, but it may also lead to your inability to pay bills if your structured settlement only allows a little bit of money to trickle in. Silver Dollar Financial helps personal injury victims by providing structured settlement funding via non-recourse loans.
The Negative Effects of a Structured Settlement
The Periodic Payment Settlement Act was probably passed with good intentions, but the reality is that these structured settlements have significant drawbacks. Below are just a few reasons you may want to push for a lump-sum solution, if possible.
Failing to Cover Your Bills
Personal injury claims tend to have a litany of severe damages suffered by the injured person. You may need the at-fault party to compensate you for the following, for example:
- Medical costs
- Pain and suffering
- Continued rehabilitation or therapy
- Property repair or replacement
- Lost income due to missing work
On top of that, you still have your regular bills for rent or mortgage payments, utilities, school, necessities, and more. A structured settlement may only be for a small amount of money at a time, leaving you to pick up the slack for these items that rightfully should be compensated by the at-fault party.
Leaving You without a Sense of Justice
It is fine to want a settlement to be fair on the at-fault party, but that should not mean you get the short end of the proverbial stick. The purpose of compensation is not only to make sure that your bills are covered but also to serve as a way of showing that the other party has taken on the burden of responsibility. Maybe extraordinary injury settlements are too high for a single lump sum. Still, the at-fault party should theoretically have at least a little discomfort, or else the lesson remains unlearned.
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Getting Structured Settlement Funding Through Silver Dollar Financial
If your claim has ended with a structured settlement, you might rue the outcome and worry about how much the agreement will help you. Silver Dollar Financial can provide you with a non-recourse loan of up to $100,000 that you can simply pay back as the settlement installments come in — this gives you your money now so that you can have full control over the money you deserve.
Safety with a Non-Recourse Loan
Debt comes in two forms: recourse and non-recourse. If you take out a recourse loan, you are in the unenviable position of being personally liable for the loan. If you default on the loan payments, the lender can take the collateral you used for the loan and continue to pursue additional cash from you by taking cuts of your paycheck or pulling money directly from your bank account.
However, with a non-recourse loan like those offered by Silver Dollar Financial, you are not held personally liable for the debt. The lender can collect the collateral associated with your loan if you default, but they can’t garnish your wages or pursue additional payments from you.
We Work with Your Attorney
As part of our commitment to transparency and financial security, Silver Dollar Financial works with your attorney to ensure that you get the best possible outcome. We provide lawyers and law firms with an online portal where they can request additional funding, upload case data, and keep us abreast of any new developments in your personal injury claim. By working directly with you and your attorney, we hope to engender trust and a feeling of safety while providing you with the funds you need.
Apply for Structured Settlement Funding Today
If you received a structured settlement that simply isn’t cutting it, get in touch with our financial experts today. Input your contact information, the law firm associated with your case, and data about your settlement and financial need on our Apply Now page. Get approved in as little as 24 hours after application, and start taking control of your finances.