How a Structured Settlement can Help an Injury Case

How a Structured Settlement can Help an Injury CaseIf you’ve been in an accident or you have been through an injury lawsuit you know that they are never easy. One of the reasons that the payouts are high in these instances is that medical expenses tend to cost a ton, especially for those with limited access to high-quality health insurance. When settling an injury case, one option is to build the cash payout into a structured settlement which will then distribute the payment in small chunks over a longer period of time.

What is a Structured Legal Settlement?

A structured settlement is essentially when the entire sum that is to be paid out due to a lawsuit (or for other reasons) is put into an annuity and paid out over time, usually in annual payments. There are two main advantages of using a structured settlement; first, the money can’t all be used or spent at once. This is great for those who are unable to invest or otherwise control large sums of cash. Second, the interest in an annuity or structured settlement is tax free as long as it stays in there. This is beneficial as any interest made with the cash from a lump sum payout would be taxed as capital gains.

Settling a Legal Case with a Structured Settlement

As they are becoming more and more commonplace it is usually quite easy to settle an injury or other legal case with a structured settlement. This typically involves your attorney negotiating with the other side to set out the terms of the structured settlement, and then the party being sued agreeing and paying up. Once they’ve paid up the money goes into an annuity account or is held in trust until it begins paying out to the winning party.

Is a Structured Settlement Right for You?

The truth is that structured settlements are not for everyone. These types of settlements can drastically improve the chance that the other party in a legal case will settle, but on the flip side many of those who are suing in an injury case have medical bills and other expenses that need to be paid now. You’ll need to discuss your options with your attorney and family to determine the proper course of action, but know that it’s very rarely a bad thing to own a structured settlement which pays off over regular increments or is held in trust.

Rapid Cash Funding is a leading buyer of structured settlement and annuities, helping individuals in every state to free up the cash that is locked up so it can be made use of today. For more information about how to sell your structured settlement or annuity, give us a call at 1-877-63-RAPID or fill out the quick email form at the top of this page.

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