Structured Settlement Questions - Frequently Asked Questions & Answers

Structured settlements have some truly unique benefits but you need to have a clear picture of both the good and the bad!

Let’s cover some of the most common structured settlement questions.

Q: What is a structured settlement exactly?

You’ve probably heard the popular commercials that start: “if you’ve been injured at work or in an accident”…

Here’s the basic idea: If you’ve been injured at work or in a car accident, an insurance company will typically *not* pay you with a lump sum, full amount. (They’d be out of money in no time if they paid everyone like that! - bad for us, good for them.)

They’ll break it down into monthly payments over a longer period of time, usually through a annuity (which for our purpose here means the same thing as structured settlement).

Q: Why are structured settlements so good? What are the advantages?

For one thing, if you’re a poor money manager - it makes sure you don’t blow it all before you get it!

(We’ve all heard stories of those knucklehead lottery winners that get the lump sum, live like they’re Donald Trump for a few years and end up bankrupt!)

Here’s the truly amazing benefit: You receive the monthly payments completely tax free.

Q: What are the disadvantages of a structured settlement?

The biggest disadvantage can be that monthly payment are *locked in* from the start.

So if an emergency comes up and you need cash, you can’t get “ask” for more up front even though you know it’s coming in the future.

The big kicker is that most lender’s will *not* let you borrow money against your settlement… so it won’t really help you get a loan.

Keep in mind: There *is* a way to get cash from your settlement if you need it… you can sell part of it (or even the whole thing!) to a company!

Q: When does a structured settlement make the most sense?

It’s especially good for people who aren’t good at managing their money - having set monthly payments will ensure that you don’t blow it all!

Also it’s a huge tax benefit… especially appropriate if you need a tax-free income for life.

Whatever You Do - *AVOID* MAKING THIS COMMON MISTAKE…

Always remember that inflation is constantly working *against* your money.

$30,000.00 does *not* have the same value as it did 20 years ago… in many cases you can do better by selling your annuity for a lump sum and investing on your own.

Either way, make sure you look at your situation with an experienced financial planner and attorney that specializes in structured settlements.

To learn much more about a structured settlement annuity, including a helpful breakdown of pros and cons, visit http://www.Structured-Settlement-Tips.com