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Tags: finance, structured settlements, structured settlements
 This is not to be taken literally, because most people hearing the term “structured settlements” would often think of infrastructure pertaining to houses. This is a finance site, and we're not here to talk about home improvement. For those out there that don't know what it means, here's what you need to know: a structured settlement (in financial terms) is a financial obligation of the offender to the victim.
This is usually done when lawsuits are filed of course, where the lawyers of both parties deal on behalf of the party they're representing, with the intentions of “settling” for the best possible deal in favor of their client. What qualifies you for filing a lawsuit like this? Well an example of that would be you getting into an unfortunate accident, like a guy unintentionally hitting you with his car while you were crossing the pedestrian lane.
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The result of that was you got paralyzed, which meant you were incapable of going to work and doing other things. It doesn't have to be that severe though, just as long as it renders you disabled in some way, and incapable of doing your job. Structured settlements are periodic payments made by the offender to you as a steady cash flow or income compensation – another good thing about it is that it's tax-free.
How much will each payment be and how long does it last, you ask? That my friend will be dependent on several factors. Some factors would be the following: how bad the offender crippled you, or as financial lawyers call it, the degree of disability. Having your body completely paralyzed is worth a lot more than having a broken arm.
Another key element that'll help with increasing periodic payments made to you is the estimated future income that you could have been earning if you weren't struck down – so having a high paying job and then being rendered incapable of carrying it out would be “great”. Moving forward, medical expenses can also be a determining factor in the amount you receive, as well as how bad the entire accident was.
Lastly, and probably having the biggest impact of all, is the lawyer. The best thing you can do is get a lawyer of good standing – one that's been well-known for doing a good job with structured settlements. You don't want to have to put your trust in some rookie that just passed the bar – sure you'll be saving money on his professional fee, but in the long run, you'd be settling less from what's actually due to you.
This sounds all good, but there's other things that you be taken into consideration before pushing through with this approach, namely: you cannot demand for a larger sum of money after the deal has been made, nor you can you ask for any advances. When the terms have already been agreed upon, chances are they're gonna stay that way.
So in case of an emergency, and you badly need the cash, you could try going to a funding company – what you do here is sell the structured settlement at a reduced cost. You don't have to sell the whole thing, just a part of it or whatever you feel necessary.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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