Best Structured Settlements

I has a money. What I do wif it?

May I suggest a structured settlement? A can of fancy feast every week.

Dissipation Risk with Large Lump Sum Payments

Despite best intentions, lump sum payments are dissipated within a short time after the money is received by the claimant. It is believed that 90 percent of cash settlements are gone within five years. Tragically, when the money is intended to replace lost income for a disability or to care for a seriously injured or ill individual for a lifetime, that person may be left without the means of self-support or to receive appropriate care.

This is a typical example of how person can come to receive a structured settlement.

At the age of 32, Robert was involved in a motorbike accident and was badly injured.

Robert engaged a lawyer to make a claim for compensation for personal injury against the motorist. The motorist was insured and the insurance company defended the claim on its client’s behalf.

The parties reached the following structured settlement agreement:

* The insurer will pay Robert an immediate cash sum of $565,000. Robert can use this amount to pay his lawyers, pay off his debts and purchase some equipment.

* The insurer will also purchase for Robert a personal injury annuity that will provide him with periodic payments, starting at $2,000 per month and continuing for as long as he lives. The payments are indexed to increase in line with the CPI and are guaranteed for 10 years from the date of settlement. The monthly payments will be used to cover his medical expenses and other living costs.

Source

Structured settlements are structured cash payments through an annuity system that is established to compensate injury victims for their losses.

Structured settlements received special legislative treatment by the U.S. Congress in 1982, as a way to make large settlements more agreeable to parties and provide certain protection to victims.

An annuity is a contract or agreement by which one receives fixed payments on an investment for a lifetime or for a specified number of years.

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