Have you been injured on the job and feel your injury should be compensated by your company? You may be able to qualify for structured settlement cash. Before you decide to look for reliable structured settlement funding companies, reviewing these frequently asked questions could help you decide if this option is best for you.
What are structured settlements? These insurance payments are mostly used in product liability or injury cases. Instead of receiving a structured settlement lump sum (which is when the individual receives the total amount of money to cover medical bills and missed work hours), people will receive monthly payments until their structured settlement cash amount runs out.
Why should I choose this option?
More than a third of all personal injury claimants are offered a structured settlement and you and your liability insurer can save between 10% and 30% by opting for this payment method. Settlement payments are becoming quite popular (with around 12% of injury claims resulting in this route); in 1982, Congress passed specific tax rules in order to encourage the use of these settlements in order to resolve physical injury cases.
Why would you sell your settlement? Selling your structured settlement is an option to those who need immediate cash due to a financial emergency. For example, paying off college loans, affording a wedding, making major home improvements or putting down a downpayment on a house are common reasons for selling.
How much structured settlement cash can you receive? Depending on the amount and timing of the payments that you are supposed to receive, the amount of cash will vary. Structured settlement brokers will also need to make the payment on time and in the full amount. Lastly, currently economic conditions will always affect the lump sum amount.
When will I receive my money? Once you’ve signed a legal contract with a structured settlement company, it may take up to 45 days to receive your money due to processing time.
Do I have to sell the whole thing? No! In fact, most people only sell a portion of their settlement. You can also opt for selling a different portion of your payments over the course of your lifetime.
Are there any costs to selling? It must be understood that there are certain fees involved with selling your structured settlement. For example, you will be taxed a certain percentage, and the insurance broker will also take a percentage. If you are looking for a structured settlement company, make sure they give you a final estimate on how much money to will receive.
Make sure you do your research on all the legal details, or have your lawyer explain some of the rules involved.