If you have been involved in a medical malpractice situation, personal injury, workers compensation, etc., there may be more than one option for you to receive the financial stability you need.
Have you ever heard of a structured settlement? Is it better than taking a lump-sum? What questions do you have about the options?
Knowing all the options before you decide can help you make a more informed decision about what to do next.
Keep reading to learn more about the advantages of structured settlements.
Payments Are Tax-Free
Tax-free! Rarely is this term ever used, so you know that this is a huge benefit of structured settlements. Unlike a paycheck, there won’t be a significant amount of money subtracted from the check to go toward taxes.
The amount you receive is the amount that you get to keep. Not having to pay taxes on the money will allow you to save it without worrying about how much you may need to pay during tax season each year.
Structured Settlements Can Be Scheduled
Do you want the payments to begin right away or wait a few years?
Another benefit of structured settlements is that you can schedule the payments for almost any period of time and decide when you would like to start them. This is a great contrast to a lump sum in which you get it all at once and cannot delay receiving the payment in the future.
If you are still able to work your job or live on another income for a length of time, you can delay the payments until you think that you will need the additional funding. Having control over the payments can also allow you to design it to cover your monthly expenses so that you are able to save any other income toward savings or paying off other debt.
Funds Don’t Expire Upon Death
Naming a beneficiary will allow you to pass on the funds to another person in the event of your death. This is important because it can provide them with financial help and prevent the money from not becoming obsolete.
These settlements are also guaranteed by the issuing insurance company, not the other party involved in the case. The market will have no effect on how you will be paid, which provides more peace of mind to you when you aren’t worried about the current economic state.
You can learn more about the benefits by visiting the Rightway Funding Facebook, where helpful information about structured settlements is shared.
Get Started Today
Now that you have read more about the advantages of structured settlements, you can make a decision on if you would rather get a lump sum payment or not. Learning about structured settlements will allow you to be more educated in this decision-making process.
Check out the other posts included on our website for more information on this topic.