FAQ’S ON STRUCTURED SETTLEMENTS
1. What is a structured settlement?
It is the type of settlement where if you are injured or met with an accident that leads your life in no use for a few years, the court gives you some amount through a third party, this amount can either be claimed annually or as a onetime payment also called lump-sum pay.
2. Will there be any problem if my future settlements are sold from my structured settlements?
You will probably not be put in situations of these kinds. If so, there is no need of selling all your settlements just a part of your structured settlement would do.
3. What is the difference between lump-sum payment and annual payment?
A lump-sum is given in one go with tax being deducted. Annual payment is done annually with a fixed amount without tax.
4. Which is the best option so that I can be relieved from my liabilities?
It depends on your liabilities, as in; if they are short-term liabilities you can settle them using your structured settlements. If you have long-term liabilities take money from your lump-sum pay making sure that you pay all the taxes and you have enough money for future.
5.How many years will I be paid for my injury?
If you are lucky enough to choose it by yourself it will be above 5 years. Some third parties play smarter and quote less amount, it is the claimant who should say whether if he is fine or not either ways you will be paid above 5 years.
6. How is the agreement done?
The agreement comes to an end if and only if the amount and the number of years the money to be paid is accepted by both the claimant as well as the party.
7. When will I get my money?
It takes around 3 months. The most crucial part is the schedule of court, if it is done the money is transacted in a matter of days.
8. What if I die before my settlement period is over?
You don’t have to worry on that your heir will be receiving your settlements on behalf of you.
9. Will I be given interest on structured settlement?
You are already being paid once a month, on top of this it is not possible for you to expect an interest. No, is the long and short of this question.
10. How truthful are the deals in online?
Online quote sometimes cheats you. They make payments that will make you feel satisfied, but the truth is that they pay you less than your actual pay.
11. When should I sell my settlements?
It is up to you. Life may not be the same as you had it yesterday or a year before, it keeps changing so does your financial needs. Think wisely and invest smartly.
12. What is a minor settlement payment?
A minor settlement payment is that settlement paid for children less than 17 who have their parents to speak on for them.
13. How well is the judge in identifying my truth? I can also lie on my injuries right?
Not as easy as you think it is! He drives smarter than you do. You will be asked for any proof for the injury and only then can you go further regarding the settlements.
14. Who will be given structured settlements?
It is obvious, not everyone. People who are personally injured or have compensating injuries are only given structured settlements.
15. How will I convert structured settlements?
You are no way allowed to cash out structured settlements. They are non-convertible.