Structured Settlement Benefits
There are a couple of things one should remember
when faced with the decision about receiving a
structured settlement. Below are some of the
benefits in choosing a structured settlement, rather than
going for a one lump sum payment:
1. A structured settlement is not liable for taxes; the
money is tax-fee.
2. People don’t usually go after those with a lot of
money, so that when you receive money over a period
of time, instead of all at once, as is customary with a
structured settlement, you alleviate this condition
3. Because most recipients of a structured settlement don’t usually have the consideration of where
they will invest the money, since the money is used for day-to-day expenses, this is another problem
that is eliminated.
4. Since a structured settlement is usually settled out of court, the recipient saves court costs.
Many people simply sell their structured settlement for cash. Ofter, it is because of the lure of a big sum
of money at one time. However, as the four points above illustrate, it can be advantageous for a person
to accept a structured settlement.
People often forget that a huge sum or money isn’t going to last forever. To use an old expression,
“Their eyes are bigger than their stomachs,” and they may go on a spending spree. There isn’t that
problem with a structured settlement, as the money is given out, as we’ve stated, over a certain period
of time. This way, you are assured of having money in the future.