Personal Injury Settlements: What’s a Structured Settlement?
If you win your personal injury case in court or settle with negligent parties outside of court, you may have two main options when it comes to deciding how to receive your settlement money. You can receive the settlement as a lump sum or as a structured settlement. The most common settlement type is a lump sum settlement and it is often the type of settlement used when settlement amounts are lower.
However, there is another option, known as a structured settlement. This settlement type is generally used when the lump sum settlement would be fairly high, or where the settlement amount is large enough that it can be divided into individual payments that could support an individual or family for many years. If you or someone you love suffered permanent disability or if someone you love was seriously injured, and you stand to receive a substantial lump sum settlement, a structured settlement may be a good option for you and your family.
The benefits of a structured settlement is that the payout of your settlement is made over time rather than all at once. This can help prevent you from spending through your settlement money too fast. A structured settlement can be arranged through monthly or bi-monthly payouts that would allow you to have money to live on for years to come. This can be especially important if your injury was serious and you suffered a disability that makes it impossible for you to return to work.
Structured settlements can be arranged so that the payout occurs over your lifetime; this way you can have the peace of mind of life-long support for your injuries, nursing care, and other needs. With a structured settlement, negligent parties may purchase an annuity using the lump sum settlement and then victims are paid from this. Basically, the negligent party may pay the money into an annuity or pay the settlement to a life insurance company, which can then manage the money. The money is then distributed to the beneficiary in a regular manner.
If you are concerned about spending through your settlement too quickly, or if you would like to receive regular payments of your settlement rather than a lump sum settlement, your personal injury law firm can work out this arrangement with you and the negligent party to create a structured settlement. Rensch & Rensch Law is a personal injury law firm in Omaha, Nebraska that can help you and your family through all aspects of the personal injury claims process. We can evaluate your case, estimate the value of your claim, offer you an honest assessment of your case, and pursue negligent parties either inside or outside of court. We can also help you navigate the benefits and drawbacks of the various settlement payout types available to you if your claim is successful.
Personal injury can impact various aspects of your personal and financial life. Let the personal injury lawyers at Rensch & Rensch Law in Omaha, Nebraska help you today. We are here to hear your case. Or, reach out to USAttorneys.com to get matched with our personal injury lawyers.
