Structured Settlement Awards
It isn’t easy to have to live on a limited income. When someone says they are living off a structured settlement, they’re talking about living off of cash for an annuity. While this can sound like a bad thing because many structured settlement annuities are awarded for personal injuries, it can mean something completely different for some people. There are varying reasons why a person would be awarded a structured settlement annuity.
Reasons That Qualify a Person for an Annuity
There are a number of reasons why someone would get awarded a structured settlement or get cash for an annuity. They are:
- A Personal Injury Occurred – This is one of the most common reasons why a person is awarded a structured settlement. It happens when someone gets injured in a car wreck. Typically, it’s paid by an insurance company and payments are usually set up over a pre-determined amount of time.
- Lottery – While it’s never a bad thing to win money, it’s something that requires careful consideration. Rather than take a lump sum, some winners opt to setup a cash annuity so they can receive regular payments. This ensures that they constantly have money coming in when they need it.
- Wrongful Death – Unfortunately, malpractice and neglect do happen. While tragic, a structured settlement is awarded to the family of the person who died. Some of the factors that could have caused the death include the wrong medication being given, lack of adequate care, poor living conditions, and many other unsatisfactory factors.
- Worker’s Compensation – This type of settlement is awarded to those men and women who get injured while on the job. The injury can be a result of poor or dangerous work conditions. Whatever the issue was at work, if it caused the injury, then a structured settlement may be awarded to the worker.
- Lawsuit – If someone wins a large amount of money in a lawsuit, the money is paid out over time and is often set up as a structured settlement annuity. While most lawsuits aren’t out of spite, they’re necessary in order to keep things civil and to right the wrongs that have happened.
Why a Structured Settlement?
When it comes to a structured settlement case, everyone benefits. The settlement can cost less because of the total amount that is paid out over time. If a lump sum was requested, it would be much higher than living off cash for annuity. Structured settlements are designed to be easier to handle and manage when it comes to court and taxes as well. So, the benefits to actually taking a structured settlement is greater than if a lump sum is taken.
Another benefit of taking a structured settlement is to ensure that the person or persons taking the settlement has financial stability over a long period of time. If a person is injured or needs worker’s compensation, they are most likely unable to return to work after a while. A structured settlement annuity gives that person or persons a source of income and the financial resources to take care of bills and other needs. They can get cash for an annuity and be better equipped to deal with everyday expenses. They’ll also be able to focus more of their time and energy on recovering from their injury.
Settlements will be around for years and are a popular method to getting the money that will take care of people for years. With a structured settlement annuity, things can be easier. The guarantee through the good times and bad times can be very reassuring.Call Us Today
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