Overview of Structured Settlements
The periodic payments being made to a plaintiff who wins a lawsuit after filling a personal injury case is termed as structured settlements The plaintiff therefore have an option of receiving a series of payments being made by the defendant Such a process is different from that of receiving the total compensation at one single full time When it comes to the selling of such payments it requires conducting enough research since there are many available purchasing companies like rightway funding to help determine the most trustworthy The major difference between structured settlements and annuities is that it requires court procedure for the winning party to receive streams of paymnents The term annuity refers to the financial product provided by the insurance companies to cater for the regular payments. The major reason behind many people preferring structured settlements unlike lump sum is their payment over time like free tax payment streams. They majorly emanates from workers compensation lawsuits, wrongful death and personal injury One party need to prove negligence of the other for a successful completion of such a case.
These settlements are meant for the injured victim and are highly intended for financial security provision There is an option of buying all or a portion of structured settlements by right way funding The guarantee comes from the insurance company that was the major party when it comes to the annuity issuance Structured settlements gives numerous benefits than lump sum payments It requires careful consideration before choosing between the two modes since once after terms finalization, there are reduced chances of making any changes The two options are highly available although lump sum best suits small amount compensation. There is such an agreement formed between the two parties which give full details regarding how to receive the total compensation The plaintiff can enjoy guaranteed financial security with extended periods. When in need of best decision rightway funding helps
There is another difference between structured settlements and lump sum in that with lumpsum the interests and dividends are subjected to taxes This is not the case with structured settlements since if the plaintiff is subjected to receive the payment in his entire lifetime, the interests earned though such annuity are exempted from taxes The structured settlement process follows a series of steps It begins with plaintiff agreement to settle and release all liability while defendant financing all settlement. It follows with payment responsibility assumption by this company while purchasing annuity from life company. Life company like rightway funding benefits the plaintiff Such services can be sourced from right way funding.
Structured settlement payout gives an option of receiving the funds immediately or after some periods of time Some of the factors that determine such a decision includes if there is loss of income during such a process or any medical treatment required This results to annuity growth and generate interest