Many personal injury lawsuit settlements result in an agreement for a structured settlement that is paid with regular payments in the future. The objective is to provide a consistent income to be used for long-term care, living costs and medical expenses. Oddly enough, receiving a lump-sum payment can be a burden for someone who is not accustomed to handling a lot of money. The large amount of funds will have to be invested to provide regular income and make sure that the money is not squandered away on vacations or other frivolous purchases. The personal injury lawsuit settlement will provide more financial security and ensure that the recipient will have the necessary funds to cover family and medical expenses.
Even so, there may be valid reasons to get cash for structured settlements.
A personal injury lawsuit settlement can have payments made annually, monthly, bi-monthly or some combination of these. Structured settlements can be arranged to make equal payments or even for some payments to be larger than the others. In this respect, structured settlements can be very flexible.
However, after the deal is closed and the documents are signed, it is very difficult to make changes.
Unfortunately, life events do not always happen as planned. There could be unforeseen problems that develop in the future. There could be unexpected medical emergencies, a need to pay college tuition or perhaps to purchase a new house. In these instances, getting cash for a personal injury lawsuit settlement can be a viable option.
There are numerous companies in the market that would be a buyer of structured settlement payments. Each one offers a wide variety of terms and conditions, so it is imperative to do your homework and investigate each company thoroughly before making a decision.
Be aware that the amount of lump-sum cash for structured settlements is going to be much less than the sum of the payments that you would have received in the future. The discount rate must consider the expected rate of inflation and cover a profit for the buyer of structured settlement payments.
Whether or not you want to get cash for your personal injury lawsuit settlement depends on many personal, financial and legal considerations, and the decision must be weighed carefully.
