Getting a Huge Payout from Structured Settlements
At the time when a lawsuit is resolved and a large settlement is awarded by the court, the parties involved agree to an amount that will be paid in
monthly instalments. The reason for this process is in case the settlement amount is huge (in the millions).
However, if you are the payee and expecting to be paid out all at once, it could be a little disheartening finding out that you will be receiving monthly
instalments. That is why third party companies are in business because they are set up to be able to offer you the large sum payment, up front, for
your monthly instalments.
Having a third party intervene is beneficial to all. The payee receives his or her lump sum payment as originally requested and the payer continues to
send the monthly instalments. The third party company is then the recipient of the monthly check and not the original payee.
This system offers the payee a lot more freedom to do as he/she pleases with the winnings, since a large sum of money is meted out to him. At the
same time, it does not put the burden of a large cash outflow on the payer, which is usually an insurance company paying damages as agreed.
There are a variety of options that the payee can consider when thinking about how to spend the money. He/she may consider a financial investment
like buying property, going on a month's vacation or fulfilling any other dream he/she may have. The opportunity to make big changes in one's lifestyle
is only possible as long as he/she is not tied to monthly instalment checks from the structured settlement.
You may wonder how the third party company benefits from this arrangement. By purchasing the payees' rights to the structured monthly instalments
for a lump sum of cash, these companies ensure a steady flow of cash to fund their portfolio. They invest this money as per a well-planned and
diversified investment plan. This ensures that they do not have fund shortages and a bright financial future is assured. This is an advantage many
financial institutions are pleased to oblige.
People receiving these monthly payments from a structured settlement often come across advertisements from such financial institutions and third
party companies. You should choose to enter into such an agreement only after a careful analysis of your own unique situation, your requirement, and
the nature of your settlement.
If you are not pleased with the concept of monthly instalment checks and would prefer to be paid out in one lump sum then you might want to consider
the assistance of a third party company. Be sure to consult a financial professional or an attorney prior to making any commitments.
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Want to know more about structured settlements? Go and visit www.allaboutstructuredsettlements.com and find out if structured settlements are
taxable and other related information.