Cash Structured Settlement

In its simplest terms, a cash structured settlement provides a series of scheduled payments to a person as the result of the settlement of a claim. The structured settlement provides a monetary package allowing for the settlement to be spread over a period of time.

One important benefit of the structured settlement is that it provides for tax free payments to occur over a set period of time. These payments can be spread over any period of time, and they are often structured to provide a steady payment throughout the life of the recipient. In many cases the payments will continue to a designated beneficiary in the event of the recipient’s death.

The alternative to such a cash structured settlement is the payment of a lump sum amount. Unlike the structured settlement, which provides steady payments for a number of years or even for life, the lump sum is provided to the recipient, who then invests the proceeds. Determining which strategy is most effective can be difficult, and it is important to seek financial help if necessary.

Many people who are entitled to a cash structured settlement may want to instead opt for a lump sum payment. Some of the reasons these people may want to opt for a lump sum payment are to pay off the mortgage, pay off medical bills or deal with credit card expenses.

It is also important for those making this important decision to think about their own investing expertise. While a lump sum of cash, properly invested, can provide steady income for life, care must be taken to make sure the money is not lost. It is important to consider your own style and to determine if you prefer the security of a steady monthly payment or the option of a large lump sum of cash to invest on your own.

Related Posts:

Leave a Comment