For many people it is a great idea to buy structured settlements instead of accepting a balloon payment. These agreements are signed after the defendants admit their guilt and are ordered by the court to pay compensation to the plaintiffs or agree to such a settlement in an out-of-court settlement. There are two types of compensation available, the first in the form of a lump sum payment and the second comprising regular installments spread over the years or lifetime of a person.
In many cases it is better to opt for these settlements for a variety of reasons. The financial security of receiving regular payments over years and decades dwarfs the importance of a single lump sum payment that you could spend in a few months. In addition, people with debilitating injuries need lifelong treatment and can’t afford it with a single payment.
financial stability
The best feature of structured settlement plans is the financial stability they offer. If you have sustained a major injury, such as one related to your spine or legs, you will need regular medical treatment. If you accept a lump sum payment, the money will run out quickly. It is difficult to manage large amounts of money and spend it wisely. This will deplete your resources and you will have little left to pay for further medical treatment. However, if you buy structured settlements, you will be guaranteed to receive a fixed amount every quarter, six months, or a year. This will allow you to pay medical expenses even after ten years of signing the contract.
best management
Even if you don’t have a lot of medical expenses, there’s always the chance to splurge once you do have money. Your injuries will heal if they are not debilitating in nature, but you will lose money for other expenses. It has been observed that more than half of those who receive lump-sum payments spend the full value in one or two years. A regular payment, on the other hand, will ensure that you have money after five or ten years. If you have signed a lifetime plan, it is valid until your death.
faster payments
If you buy structured settlements, you will be able to receive payments quickly. Defendants find it more difficult to shell out a large amount of money than to pay in smaller installments. Insurance companies organize and facilitate these types of deals and this eliminates any possibility of fraud if you have registered with an accredited institution. You can also buy structured settlements from more than one company to avoid future chances of default if one company goes bankrupt. There are safety clauses in annuity agreements that will protect you from such scenarios, but it’s best to have a contingency plan ready.
Therefore, you can choose structured settlements to overcome financial difficulties and finance medical expenses for many years.