Several times, when a legal action is settled between two parties, the defendant (a person or company prosecuted or accused) proposes to pay the amount in installments at the place To pay a single lump sum at the. When a settlement amount is paid in this way, we have called a structured settlement. Normally, it is created by the purchase of one or more annuities that guarantee settlement payments. With increased reliability on structured settlement, it is advisable to know the benefits offered by it. This is because several times, the applicant (who files the case) is not aware of the benefits available and therefore can not take full advantage of the situation. This makes the other part escape with the least expensive solution possible. Several times, the defendant prefers to pay the settlement amount in a lump sum. However getting payment in installments is more beneficial for the applicant. Therefore, it is very important to keep in mind the amount you will receive and the method of payment.
Generally, structured settlement is not a source of returned. However, it can be taken as a blessing in disguise for people who are seriously injured and are unable to meet the purpose of life anymore. If both parties agree on monthly or annual payments, then the applicant gets a lifetime security to obtain periodic amounts of money over time. This money can be used to meet the financial needs of the applicant and his family. The method of payment is decided by both parties and the transaction usually takes place between the applicant 's insurance company and the defendant' s insurance company.
2. Security and flexibility:
Structured institutions are safer and more flexible. There is the flexibility to pay all of the money to one, or in installments. Depending on the nature of the loss, the structured settlements can last for the life of the beneficiary. If he agrees to get settlement money over his lifetime, he gives the security of getting a regular amount on a regular basis. In case of financial loss, it ensures that the loss is not too large and they will get a substantial amount of money to come. Depending on the type of structured settlement chosen, if the beneficiary spends well in time, then the beneficiary still has the option of receiving payments.
Source by Naitao Kunnawat: http://ezinearticles.com/expert/Naitao_Kunnawat/542393
Here are the major advantages of a structured settlement:
1. Reliable monetary resource:Generally, structured settlement is not a source of returned. However, it can be taken as a blessing in disguise for people who are seriously injured and are unable to meet the purpose of life anymore. If both parties agree on monthly or annual payments, then the applicant gets a lifetime security to obtain periodic amounts of money over time. This money can be used to meet the financial needs of the applicant and his family. The method of payment is decided by both parties and the transaction usually takes place between the applicant 's insurance company and the defendant' s insurance company.
2. Security and flexibility:
Structured institutions are safer and more flexible. There is the flexibility to pay all of the money to one, or in installments. Depending on the nature of the loss, the structured settlements can last for the life of the beneficiary. If he agrees to get settlement money over his lifetime, he gives the security of getting a regular amount on a regular basis. In case of financial loss, it ensures that the loss is not too large and they will get a substantial amount of money to come. Depending on the type of structured settlement chosen, if the beneficiary spends well in time, then the beneficiary still has the option of receiving payments.
Source by Naitao Kunnawat: http://ezinearticles.com/expert/Naitao_Kunnawat/542393
