Plaintiffs awaiting settlement can expect this to be paid out in a lump sum most of the time. However, it is not uncommon to be offered a structured settlement instead of one large settlement payout. These are a set of regular payments that can last 10 years to life depending on the severity of the injuries sustained by the plaintiff.
What Is A Structured Settlement?
A fixed income is awarded to plaintiffs after they have suffered a devastating injury leaving them unable to work.
Structured settlements are usually offered for:
- Workers’ compensation
- Personal injury cases
- Wrongful death
If you are young and have suffered a horrible accident which makes you unable to work, a regular payment will allow you to rest assured that you will always have money coming in. A structured settlement will protect someone from losing their settlement award in a bad investment decision.
Advantages of a Structured Settlement
If you suddenly receive a large settlement but are not used to managing big sums of money, then chances are you might lose it quickly. Structured settlements came into existence in the 1970s to help give plaintiffs a regular income and have been made tax-free by the government in the 80s. However, these tax exemptions only apply to personal injuries, workers’ compensation, and wrongful death. Income generated from lump sums via investment funds is taxable and on top of that, these investment funds charge annual management fees whilst structured settlements do not. The fluctuations in the financial market also have an impact on regular investment fund products while structured settlements are protected from these.
Overall structured settlements will give you more money than lump sums and will guarantee you an income. Once agreed on a structured settlement, you cannot change your mind to get a lump sum later on so please be aware. Luckily, structured settlement companies are able to buy these regular payments of the issuing company for you and issue you with a lump sum in case you need it.
Disadvantages of a Structured Settlement
The biggest disadvantage of structured settlements is their rigid nature. Once the settlement is finalized, there is little that can be done to alter it in case your needs change. This is particularly difficult when your financial situation changes or other external factors outside of your control affect your financial situation. Another downside is that plaintiffs would not be able to reallocate lump-sum payments into other investments that carry higher rates of return or let alone access it in case of emergency.
However, in the event that a plaintiff wishes to secure immediate cash, a structured settlement company can help you out. They will buy out the structured settlement and give you a lump sum in return.
I Have a Structured Settlement – Can Tribeca Help Me Get a Lump Sum?
Tribeca understands that life is complicated and due to unforeseen circumstances, you might need extra help. We can offer to buy out your existing payment structure and offer you a complete or partial lump sum payment if need be.
We try to be as fair and transparent as possible and assist during the entire process.
How Do I Apply For a Structured Settlement Funding?
To make an assessment to see if you are eligible for structured settlement funding we need the following information:
- Date when your case settled
- Regular payments amount and interval
- The total amount of awarded settlement
- The amount you need now
- The company name issuing the regular payments
Once we have all the necessary information, we can offer the funds within 24 hours.
Give us a call now at (866) 388-2288 or fill out our online contact form to get more information on how we can help you in your difficult time.