What Structured Settlements are and Why Selling One is a Bad Idea

When a Hoosier or their family member is seriously injured in any type of trauma situation, such as a car wreck with a drunk driver, a highway accident with a semi tractor trailer, a road accident, a motorcycle accident, a construction accident or a fatal accident, qualified accident attorneys and accident lawyers know that a structured settlement may be the best thing for a person.  Think about what happens to a person who is seriously injured. The injury might be a brain injury and they cannot take care of themselves or their money.  The injury might be a spinal cord injury which makes the person either a paraplegic or a quadriplegic.  If this is the case the injured person is going to have a lot of future medical bills.  What if the injury is an amputation where the person will have to buy a new prosthetic arm or leg every few years, not to mention wheel chairs and other adaptive equipment.  What if the injury is a wrongful death of a working mother of two small children.  Those children are going to need money all through their childhood and even into young adulthood.

A structured settlement of any or all compensation is a valuable tool for protecting money you will need well into the future.  Think about a child who turns 18, and gets a bunch of cash.  That kid is going to blow all that money.  He/she will blow the money on things that will not last, like a new car.  They might spend it on drugs and alcohol.  They might spend it on new toys like an off-road vehicle.  What they are unlikely to do is invest the money so that it will be there for them when they need it, to get married, pay for their education, start a business, or a lot of other things that will help that child live comfortably.

A structured settlement is money from your compensation that is invested in an annuity, more likely than not with a large bank or insurance company.  The money is paid out, over time, with interest.  The plans can be set up any way you want, it depends on the need.  If the person who is going to receive the money is a child, it may be set up to pay out enough money each year to pay for college.  The rest may be paid out over time to help start a business or pay for a house.  If the person who is getting the money has future medical costs, and is not able to work, the money can be paid out every year just like receiving a paycheck.  Smart injury lawyers know how to set up these settlements so that the interest earned off the money invested is paid out tax free.

You see companies advertising on TV telling you “It’s your money, use it when you want.”  What they are not telling you is they will only pay a fraction of the true value of the structured settlement.  This cheats the unsuspecting injured person out of the money and the security of having future payments.  The people on TV smile and tell you they want to help.  What they really want is your structured settlement at a cheap price.  After all they are in it for the money.  Do not sell to them.  Counsel others not to sell to them.  A structured settlement can be a great thing.  Let it work for you.

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