The Worth Of Structured Settlement Payments
Filed under: Structured Settlements — Structured Settlement Expert @ 5:26 am
Oftentimes, as a result of a personal injury case, inured parties receives a sum of money as compensation for their injuries. In years past, the injured party would be paid in one lump sum. But in the early 1980s, laws were enacted that provided for the structured settlement; as opposed to receiving this financial award all at once, the injured party would instead receive periodic payments that are funded by an annuity set up for this purpose.
The size of a tort settlement is often based on a number of significant factors - the specific injuries involved and the expenses associated with such injuries going forward, including medical expenses, loss of wages, and everyday living. This total amount is also subject to inflation – as determined by the amount of time over which the recipient will receive payment, or will be suffering the impact of the tort injury.
There are times, however, when the recipient is in need of a lump sum of money for particular expenses, such as medical bills, debt, and education costs, among others. In these particular circumstances, the recipient may appeal to the courts to allow them to sell all or part of their future structured settlement payments. If approved, the structured settlement recipient can sell their payments to a company that purchases such payments in exchange for a lump sum of money.
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