What Are The Benefits Of Structural Settlement For The Liable And Injured Parties?
If you have had a personal injury case decided in your favor, you may receive what is termed a structural settlement. This is a settlement for personal injury damages that isn’t a lump sum payment but rather a series of payments over time.
If you are injured and win your case for damages, you may be awarded a structured settlement rather than a lump sum payment. Lump sum payments were quite common in the past but structured settlements are gaining in popularity.
It works like this. When you are injured and you press a lawsuit against the other party, the other party is found liable and you are awarded damages. The settlement damages are then scheduled for a payout over time. It is like you are a creditor, and the liable party has to make payments on what they owe you, although they do not pay interest on this. It simply breaks down the amount owed into regular payments.
The period of time for a structural settlement can vary. Generally payments are monthly, and are paid out over years. Depending on the monthly sum and the total award amount, the payout term will be shorter or longer. If you have a settlement that is very large, it may pay out over decades even.
Believe it or not, a structured settlement has good parts for both the liable party and the injured party. The injured party benefits from getting money paid over time. Otherwise they would end up getting it all in one lump sum.
Part of the benefit of this is that the injured person will have an income to cover any unforeseen issues that are the result of the injury. This is important. It is possible that the effects of the injury can be lasting.
On the side of the liable party, this is also a benefit. There is a tax reduction because of the structure of the payout. So the tax would be reduced across this period.
Knowing the basics of how a structured settlement works is beneficial. Ideally, it is used to ensure that the injured party receives adequate compensation for the entire time they are affected. Plus, it helps all parties involved.
Aside from settlements, the author additionally frequently pens articles about buying individual health insurance and dental sedation.
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