In the present times of rising process and growing inflation, some form of investment is very necessary to ensure financial security.Investment made in buying structured settlements has witnessed an increase in recent years.
The History of Structured Settlements
The concept of structured settlement began in the late 20th century, around 40 years back.During those times it was analysed that a medication Thalidomide was causing serious birth defects to children when given to pregnant women.Hence,to ensure that the money granted to children lasted for their lifetime,structured settlements had their origin coming into existence.Since then,the concept of structured settlements has been in use offering good future money guarantee that could last for a longer period of time as compared to a single pay out.
What is a Structured Settlement?
Structured settlements are basically pre-decided settlements that involve a lump sum amount of money being given to the plaintiff ion account of some serious injury or personal loss.It can also refer as the amount that is given as reimbursement to the plaintiff on account of some negligence or damage caused by an organisation,person or company.
To sell structured settlement payments can acts as a good idea than waiting for its tenure to complete. The reason can vary as per situation and circumstances. In case you are in urgent need of money to meet your financial needs, you can consider selling your settlement instead of taking a loan as it would lead you to a mutually agreed upon continuous net of money than a single payout.
Benefits and Demerits associated
Structured settlements act as good means to cover damages that could result out of any personal injury or loss.Rather than a lump sum amount that is offered via a loan,money that is structured and offered continuously offers a greater and speedy safety to cover losses and casualties.In some cases,structured settlements maid for covering medical expenses also offer various kinds of health benefits and aids to the person which are not given in case a lump sum amount is borrowed.
The demerit associated with such settlements can be varied.There is no possibility of moderation or change on the plan and amount that gets agreed upon by both the parties.So in future,if you come across any financial setbacks,you don’t have any opportunity to ask for more aids or larger payments.