These days many settlements are made in the structured format. In case you have been injured in a road accident, you might need money from your settlement immediately to pay your medical bills, and would rather have it now than wait for a large sum of money that may come to you later. You should carefully weigh the pros and cons before you decide on whether you should opt for a structured settlement. If you need money for recurring medical expenses on account of your injury or anticipate prolonged physical therapy in order to recuperate, then a structured settlement might be a good idea. The payment of a structured settlement usually comes from interest accruing on a purchased annuity. Although the terms of the settlement are quite loose, it is a binding one.
Once you have signed the agreement, no more changes will be allowed at this point. Should you feel the need later to revise or make changes to the agreement because of some unforeseen expenses, you will need an attorney to change the terms of your agreement. You cannot use your structured settlement to obtain a new loan either. There are companies that will purchase the rights to your structured settlement for a lump sum of cash, but they are in it for the investment potential. They will pay you the current day value of your settlement amount, excluding the invested sum. The rules do vary in different states regarding structured settlements.
The amount received from structured settlements is taxable in some states. If you are consulting an attorney to help you with your structured settlement, be sure you fully assess your situation and requirements carefully. Some things to consider before making a decision are: What are the pros and cons of the program? Does the attorney have previous experience in negotiating structured settlements? What is better suited for your own unique situation, a structured settlement or a lump sum of money? Will you get any tax benefit by opting for a structured settlement? Will you get enough money fast enough to cover all your expenses? What happens in case of future contingencies, and if your requirement for money increases? Will you be able to change the terms of the structured settlement later? Can you decide to change the program and opt for a lump sum payment at a later date? Don't forget to prepare a list of specific questions before you speak to a lawyer. Meeting with the lawyer will help you deicde whether he/she is the right person to handle the negotiation of your structured settlement. You should have no doubt in your mind that your lawyer has your best interest at heart, and if you do have doubts, get a second opinion or consult with your own financial planner.
With all your questions completely answered, you are now ready to make an informed decision. Remember that this is a very critical decision to make, as it will affect your future and the future of your family. So be sure to enter into an agreement only if you are completely certain that you have made the right decision.
Interested in structured settlements? Go and visit www.allaboutstructuredsettlements.com and learn more about the advantages of structured settlements and other related subjects.
