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What Are the Benefits of Getting a Structured Settlement?

Structured settlements have been around for more than a century. They were originally designed to protect injured people who needed ongoing medical care. But these days, they are also used by corporations that want to settle lawsuits without the risk of lengthy trial proceedings.

Structured settlements can be especially beneficial when there is a need for long-term care or other expenses not covered by traditional insurance plans.

In this article, we’ll explore six benefits of structured settlement payments.

1. Cushion Emergency Expenses

One of the main advantages of a structured settlement is that it can cushion against sudden emergency expenses. If you have a traditional life insurance policy, you usually can’t access money from your policy until you die or become terminally ill.

But with a structured settlement, monthly payments are made, and the money is yours to spend when you need it most.

2. Tax Free Income

When you receive cash from an insurance or court settlement, the amount is taxable. This can be a problem for people getting by financially and do not have any extra money to set aside for taxes.

However, with a structured settlement, those tax burdens never appear because your monthly payments come directly to you.

3. Avoid Risky Investments

If you’re receiving a large lump sum of money from a court settlement, you may want to invest all your money in stocks or other assets. But this could be risky if your investment doesn’t pan out as expected. Also, investing too much could leave you without enough money for daily expenses.

Instead, when you get a structured settlement, your cash is always available to you, and you don’t need to worry about losing it in the stock market.

Many people prefer a structured settlement over a traditional insurance payout because they don’t have to deal with the hassle of hiring attorneys.

Instead, attorneys working for the liable company will handle all legal issues and will ensure that all claims are met according to your agreement.

5. Eliminate Probate Issues

If you receive an insurance payout or court settlement via check, it could be difficult to access the money right away. If you put the money in your bank account, there’s always a chance that someone could contest your ownership of that cash if you die before depositing it into an account protected under law (e.g., a trust).

With a structured settlement, however, there is no waiting for probate. The full amount of the payout is made available to you immediately and directly.

6. No Management Fee Costs

One of the main disadvantages of an annuity is that it charges a management fee for producing cash flow. This can take some serious money out of your monthly settlement check.

But with a structured settlement, there are no management fees to worry about. Your payments are secure and guaranteed for life. Whatever you get paid each month is your payment, period!

If you prefer lump sum payments over structured payments, you can visit rightwayfunding.com.

Enjoy the Benefits of Structured Settlement

Structured settlements can be incredibly valuable for people who are looking for a way to receive regular payments that don’t have to be paid out right away. They are especially beneficial for those who need supplemental income and require an asset protected against legal contestation.

For more interesting information, keep reading our blogs.