Getting injured on the job is never something you want to think about, but it couldn’t hurt to know what your options are if an accident does happen and you end up getting hurt. Protect yourself and your family, and opt for a structured settlement.
What are structured settlements?
Structured settlements are a type of annuity which pays out a certain amount of money from a personal-injury case, lottery wining, product liability, or workers’ compensation claim, along with other types of legal settlements. The structured settlement cash is often tax-free for the payout period. More than one-third of personal injury claims are resolved with a structured settlement.
Can I get settlement money now? If you were injured on the job, you may qualify to get settlement money now. If you already have a settlement, you can sell it for a structured settlement lump sum. Cashing out your settlement depends on a variety of factors: Interest rates, demand for settlements, and how much money you need.
Why a structured settlement? First of all, defendants and their liability insurers can save between 10% and 30% by using a structured settlement There are three common types of settlements:
- Personal Injury – This is when the injury victim settles a claim for a large sum of money and the amount is paid out over a period of time, which can help them pay for medical bills.
- Wrongful Death – If something happens to you, you will want your family to be supported financially when you’re gone and to have them get settlement money now. This is a common way for companies to compensate the family of someone who has died on the job.
- Worker’s Compensation – This is another common form of structured settlement money and is applied when you are injured on the job. You will receive payment as you recover from your injuries.
Benefits: In 1982, Congress adopted specific tax rules to encourage people to use structured settlements to resolve personal injury cases, and as a result many people have benefitted from these type of annuities.
- You can schedule your payments for almost any length of time; they can be deferred or given in a lump sum.
- They are not dependent on stock market fluctuations and payments are guaranteed by the structured settlement funding companies.
- If the recipient of the structured settlement dies prematurely, whoever the beneficiaries are will continue to receive the future payments, tax-free.