If you’ve been awarded a settlement in a civil lawsuit, chances are you were offered a structured settlement.
Most people don’t know much about structured settlements.
Structured settlements give you peace of mind.
Put simply, they guarantee that money is there when you need it, and not when you don’t. It’s like having a really awesome savings account and a safety cushion for you or your child.
Keep reading to learn more about 5 ways you can take advantage of a structured settlement.
1. More Money
The number one way to take advantage of a structured settlement is by earning more in the long term than you were awarded in your initial settlement.
Basically, your lump sum payout is invested. Over the course of your life, you can earn many times what you were initially given.
You’ll still have access to your money though and you won’t pay taxes, fees, or fines. Your money will just keep adding up.
2. Income for Life
Structured settlements are usually designed to provide income for the rest of your life.
If you choose to receive a lump-sum payment, you run the risk of running out of money long before you die. If you opt for a structured settlement, you won’t outlive your payments.
You’ll have guaranteed income for as long as you are alive. Your payment will be safe and secure and help you pay for ongoing medical and living expenses.
3. Peace of Mind
Victims of personal injury often grapple with the long term effects of their injury.
The last thing they need is to worry about not having enough money or misusing it. Most of us are already worried about our lives as senior citizens and retirees and what life without a regular income will look like.
If you opt for a structured settlement, you are guaranteed benefits that will never run out. You also don’t have to worry about how your funds are invested or risk losing your money.
4. Customize Your Payments
With structured settlements, payment amounts can be customized and designed to fit your individual cash flow wants and needs.
This includes things like educational and medical expenses, everyday living expenses, and big-ticket items. Basically, your payouts can be tailored to your financial needs.
You can put away the lump sump to earn interest on it and schedule payouts based on need. This gives you the maximum earning potential while still ensuring you have money when you need it.
5. Investment Without Fees or Taxes
Structured settlements do not have any management fees, expenses or commissions.
Most other investment products and vehicles come with a host of fees.
Structured settlement annuity is also tax-free. You won’t pay taxes on the settlement award, the principal, the ongoing payments, or the interest you earn.
Consider a Structured Settlement
If you are planning to receive a lump sum settlement, you should consider opting for a structured settlement instead.
You will get more for your money in the long run and many other benefits.
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