Finance and Structured Settlement
August 5th, 2009
Payments received on a regular basis, monthly or annually, as an arrangement to resolve a tort claim or as a form of insurance are called structured settlements. These financial arrangements are used for risk managements, as a compromise between an individual and a company, or as a compensation for injuries sustained in an accident.
Years ago, these compensation and compromise can only be settled with a one-time settlement payment or lump sum. An individual may opt to choose this method, although structured settlements may be more beneficial. There are many advantages in choosing structured settlement arrangement over lump sum. One of these advantages is the assurance that funds are available or will be on hand on a regular basis to cover for food and other needs. Opting for lump sum settlement may be a risk of money mismanagement resulting to the loss of the whole fund. Structured settlements also assure the owner of funds for his dependents or family members upon his incapacity or death.
In choosing whether to opt to receive a lump sum or structured settlement, you may want to seek legal and financial advice from professionals who could give you ample information about the process to rid you of possible financial concerns in the future.
Posted in Finance and Money