When someone is hurt by an individual or by a company then that person will sue against them. He/she may be settled with an amount. There are different ways of settlement and payment can be made through many ways. Now we will discuss in detail different options of a structured settlement. For example when a person wins a court case, judge may ask the defendant for payment. The defendant then will pay the claimant according to the judgment order. You may receive lump sum amount or regular monthly installments depending on the court decision.
But it will be a wise decision to take payment in installments and it will be called structure settlement. Installment payments can help you to meet your monthly financial needs and requirements. These payments can also protect you from inflation. Usually an insurance company will purchase the annuity and is ordered to pay the individual. Then payment will be made you according to the terms of the structured settlement.
There are many advantages of the structured settlements. One advantage is that it is a good source of regular income for you. Another advantage is that you do not have to pay tax on these installments. But you will have to pay tax on lump sum amount. There are some disadvantages also. Once you entered in a structured settlement then you cannot change its terms. So it is necessary to consult with an attorney or lawyer before entering into a structured settlement. But it cannot be said that structured settlement is beneficial for everyone.