วันอาทิตย์ที่ 5 กุมภาพันธ์ พ.ศ. 2555

Structured Settlement Payment - What You Should Know



If you are a party to a lawsuit that entitles you to a large sum of money, you will most likely be offered a structured settlement payment agreement. With such an agreement, the party obliged to pay you, will have to purchase an annuity or an insurance instrument in order to make the periodic payments to you, spread out over a period of time. This saves them from having to come up with the funds to pay you in lump sum once the case has been decided on. Such a settlement agreement has its disadvantages and advantages. You would be wise to go over the pros and cons of entering into such an agreement before you make your decision. While it could be beneficial to you as it assures you of regular income, there are also pitfalls that you would not want to get into after you have agreed to the settlement.

The important thing about a structured settlement payment agreement is that it assures you of regular income. Especially if the settlement is due to an injury that renders you unfit to work, having such an income come to you periodically would serve to ensure regular cash flow as if you are still employed. This proves to be a key advantage for people who might not otherwise be able to manage a lump sum amount to last throughout their lifetime. One disadvantage in this case would be the possibility of not having enough cash in case there is a rise in your cost of living or in the medical bills your disability or injury might require.

It is important to hire a good lawyer when you are negotiating for a settlement agreement. The lawyer would be able to properly advise you as to the prudence of such an agreement. He will also be in the best position to determine whether or not you are getting a fair share of the deal. There are cases, however, when the lawyer has a vested interest in negotiating for a structured settlement payment agreement. In these cases, the lawyers themselves are usually part of or has an association with the structured settlement broker or insurance company where the annuities for the structured settlement is to be purchased. He therefore stands to earn from the deal when the structured settlement agreement pushes through. Remember that you, as the aggrieved party, should get the best deal in the agreement - not your lawyer or any other person or company. Make sure that you take these considerations in mind to get the most out of your settlement agreement.

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