If you have a structured settlement….
Believe it or not structured settlements are responsible for a slice of American pop culture. If you have watched T.V. in the last decade you’ve seen the ad that started it all. A portly opera singer asks if we have a structured settlement and need cash now. While this commercial gets stuck in your head it does nothing to explain what a structured settlement is. The Zayed Law Offices Blog is here to help. If after reading this you have questions about structured settlements call Zayed Law Offices at 855.726.1616. Our attorneys are here to assist you.
What is a settlement?
Not every personal injury case goes to trial. Some go to mediation, some go to arbitration, and many cases end with a settlement. A settlement occurs when you accept money in exchange for the release of your claims against the responsible party. This means that you will not be able to sue the responsible party for anything arising from the occurrence that injured you. A settlement ends the case. If you are considering a settlement you need to ensure you have all the information you need. The experienced attorneys of Zayed Law Offices have been here before and know what it takes to ensure your case is settled properly.
Lump sum settlements
A lump sum settlement is just that, the responsible party gives you a “lump” of cash. This “lump” is all the money you will receive for your injuries. This means that once this money is gone it is gone. Receiving a large amount of money sounds like a dream come true but, it can be a nightmare when mismanaged.
What if you have continuing medical expenses or can’t work? A lump sum settlement may not be the best option for you. A lump sum settlement can be hard to manage. You may feel flush with cash and spend money you’ll need in the future today. We have all heard stories of people coming into a large sum of money and blowing it all in a few short years. Spending like this can deplete money you need for future treatment. Speaking with a financial advisor about your lump sum settlement is the best way to protect yourself from these issues. A financial advisor can give you insights on how to manage and invest your settlement. A structured settlement is another way to ensure that your settlement lasts.
Unlike a lump sum settlement, you do not get a “lump” of cash with a structured settlement. Instead, you will receive periodic payments over a set number of years. These periodic payments come from an annuity that was purchased with your settlement money.
Annuities are financial products sold by insurance companies. Annuities guarantee income over a set number of years. Normally annuities are used to protect against longevity risk. Longevity risk is the risk that you may out live your money. Structured settlements can provide the same peace of mind to someone who has been seriously injured and will have continuing medical expenses. Accepting a structured settlement would ensure that they could pay for these continuing medical expenses. If they accepted a lump sum settlement there is always the risk that the money will run out. The same is true for someone who can no longer work as a result of their injury. Structured settlements can give peace of mind to people who need long term financial stability.
Call Zayed Law Offices
When you have been seriously injured the most important call you can make is to Zayed Law Offices. Our experienced Joliet personal injury attorneys are here to assist you every step of the way. Time is of the essence in personal injury cases so call 855.726.1616 today. You can also chat with us online 24/7 at www.zayedlawoffices.com. We’re here to fight for your justice.