Benefits of a Structured Insurance Settlement
When faced with the decision about accepting a structured settlement, or selling thesettlement to receive a large lump sum payment, there are a few things to remember. For many reasons, it’s found to be a better decision to accept thestructured settlement.
Here are the benefits of choosing the structured settlement option:
1. The money received from a structured insurance settlement is not taxed by the IRS.
2. When you receive money over a period of time, instead of in one large lump sum, you usually have less problems with family and close friends constantly trying to borrow money.
3. Recipients of structured settlements don’t usually have the problem of where to invest large sums of money. The money is used for their day-to-day living expenses.
4. Very often, when a structured insurance settlement is offered, there isn’t a worry about having to go to court. It’s usually settled out of court, and the person who is being offered the structured settlement saves court costs.
For many people there is a lure of receiving a big lump sum of money. This lure makes people really consider selling their structured settlement for cash. In many cases, thestructured settlement can really be the better of the two choices.
Often times, when people have a big sum of money they forget that the money isn’t going to last forever. They begin going on a spending spree and the money is gone before they know it. With a structured settlement, you are sure to have money for the future and there isn’t the worry about spending it all at once.
You have valid reasons for a person to take structured settlement payments over time rather than sell for a lump sum; however, there are good reasons to sell it for immediate funds. For example, my friend had to sell structured settlements because he had amassed a large amount of debt while waiting for the settlement process to go through. In his case, it was smarter to take the lump sum. So, though it may be fiscally better in many situations to take a structured settlement, there are instances where it is best to sell.
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