Structured settlement options are popular among personal injury lawsuits. If you’ve agreed on a structured settlement after winning your case, the money will be transferred from the defendant’s insurance company (or the defendant) onto a life insurance company. The life insurance company will then work with you to determine settlement terms, some of which include:
- How frequently you wish to receive your money (weekly, monthly, yearly, etc.)
- The length of your structure
- The amount of money you want in each payment
You can also dedicate a certain amount of your settlement to cover events in advance, such as medical emergencies, and the like. Once your terms are solidified, it’s very difficult to alter them at a later date. Think long and hard before you make any decisions.
Before you decide on an insurance company, make sure that whoever you choose is highly rated for handling structured settlements. If an insurance company goes under or mismanages your money, whatever money was lost in the process is gone for good.
If you’re not sold on a structured settlement, you can couple a lump sum payment with a structured settlement. Some people choose this to cover immediate expenses for things like debts and medical bills.