Financial terms are often confusing, which is why many people are not aware that the process of periodic payments being made to someone who has made an injury claim, or a surviving family member is known as a structured settlement. These are simply two examples where a structured settlement would come into play. The reason why structured settlements have become so popular is because there are numerous benefits for everyone involved.
To put it simply, a structured settlement is simply a financial agreement in which payments are made in regular instalments. Basically, a structured settlement is an agreement that is made to suit those involved. There are some settlements that will make an immediate payment if certain things were to occur.
The advantages of a structured settlement.
A very obvious plus point of a structured settlement is that any payments received are not taxable. Unfortunately, other investment opportunities do not offer the same flexibility of a structured settlement.
Another great benefit of a structured settlement is the ability of the payee to design the settlement so that the money is paid when they need it to be. In the event of the recipient's death, a guaranteed part of the settlement may be paid to the person's estate or to a named beneficiary.
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