Advantages of Structured settlement payment over Lump sum in Personal Injury damages

A structured settlement payment is an option for mode of payment usually arising from personal injury cases. The plaintiff can receive damages in small amount of money spread over a longer period time. It is an installment payment for your losses.

The usual practice in court is granting a lump sum wherein the award money is given to the plaintiff in full amount at one time.

If your injuries are minor and the award money is relatively small, you may opt for lump sum payment. However, in cases of catastrophic injuries, you can apportion the huge award of money for a long period of time. This can aid your continuous medication or therapy and can finance your family when you are no longer able to work.

The advantage with structured payment is that you can plan and control the expenses regularly. Statistics show that families who receive the lump sum can spend it within five years. If you trust the insurance company and rely on the court's power to implement the decision consistently, then structured settlement may work for you.

On the other hand, the disadvantage for structured settlement is that insurance company may face economic or financial trouble and reduce the amount of your annuity. If you will be receiving a small amount of damages, you may opt for a lump sum and use it to finance your immediate medical needs.

Insurance adjuster will do everything to make the payment as small as they can. Paying in structured settlement allows them to minimize the cash flow and reduce the monetary value after several years. You may seek a professional lawyer specializing in personal injury or insurance claim to assert full compensation for your injuries as well as weigh the best payment mode that works for you and your family's situation.

Should you decide to opt for structured settlement, the annuities that you will receive are tax-free. You also have an option to sell your structured settlement payment to other entities.

Advantages of structured settlement payment

1. Structured settlement provides long term financial security for your family and may prevent the likely dependence on government for long term support.
2. Annuities can be customized according to your needs. It can be modified according to your medical expenses and frequency of therapy.
3. The government, however, offers protection should the insurance company go bankrupt.
4. The plaintiff may request a bigger amount of money at the first few payments to cover expensive hospital bills and therapy.
5. Structured settlement funds an eventual advancement in medicine to cure severe injuries.

Consult your Los Angeles personal injury lawyer and learn more on how to assert a structured settlement payment.



The Mesriani Law Group has a wide range of legal resources as we work with the best lawyers and litigators in each state across the United States. We offer a unique attorney directory where you can find a lawyer's location and area of practices. For more information contact Mesriani Law Group at 310-826-6300 or visit the main office at 12400 Wilshire Blvd. Suite 810 Los Angeles CA 90025.