In many civil cases, the injured party or plaintiff in a case is awarded a financial settlement. This settlement may be a lump sum of cash that is paid all at once, or it may be a structured settlement that pays the plaintiff a regular payment over a longer period of time. It may last for years or even for the plaintiff’s entire life. Often, a structured settlement is established through an annuity. While some may prefer a lump sum of cash from a court case, a structured settlement can actually help you to save money on your bills and improve financial management.
Easier Financial Management
Some individuals unfortunately have trouble managing their money on their own, and they may elevate their lifestyle and increase spending habits when they receive a lump sum of cash. With a structured settlement, the annuity payment can become a part of the budget. It is then more likely to be used for medical bills, credit card bills or living expenses. When bills are paid on time, late fees and interest rate hikes are avoided.
This guaranteed monthly payment essentially makes it easier for individuals to stick to a set budget and to make their funds last for as long as they are received through the annuity.
Various Settlement Structures Available
It is important to note that there are different settlement structures available. Some settlements will be established purely as a lump sum payment, and others may be established as monthly, quarterly, semi-annual, or annual payments. In addition, some may be set up as lump sums and regular occurring monthly, quarterly, semi-annual, or annual payments.
Can You Change Your Mind?
What do you do if you chose to receive payments over time, but then life events make it necessary to find a large amount of cash? You still have the option to sell some or all of your structured settlement payments for a lump sum of money to a company such as Dolphin Asset Group. We’re experts at helping our clients through the process of selling structured settlement payments, and can help you know what to expect every step of the way.
Each structured settlement case is unique, and there is no single structure that is best for every situation. It’s easy to see that there are benefits associated with a structured settlement, but it’s also good to have a way to sell some of those payments for a lump sum when a financial emergency arises.
Disclaimer: Dolphin Asset Group is not allowed to provide tax or financial advice. All information contained herein should not be construed as such. Readers are advised to seek independent advice from a qualified professional.