Structured Settlement Payments – Get Straight Facts

Structured settlement means transacting a settlement deal in a structural sequence. The provision was introduced for the mutual benefit of both the plaintiff and the defender. There are many implications regarding settlement and its viability. Structured Settlement payment is also conducted by insurance companies so as to ease their claim reimbursement burden. The basic purpose of this concept is to fair the compensation over a certain period of time. It allows the compensator to enjoy the benefit of time. Thus a settlement is basically meant to help a lawbreaker or a liability holder in paying off his compensation by dividing the compensation sum over a comfortable span of time.Now you know how structured benefits the payer. So, you must be wondering what are the benefits to the receiver and why would he settle in for a settlement. If you are a plaintiff or the claimant in a particular case you can derive multiple benefits from a settlement option. Firstly, you can negotiate for a higher settlement amount. Is not that good enough? The concept is pretty obvious. You demand for a settlement. You name the settlement digit. And the opposite party is not agreeable with the sum.Under such circumstance when the defending party is not ready to settle with huge compensation amount, you can offer the option of a settlement. You can simply say that, “pay me in chunks, but pay me the entire amount”. This allowance of time is the best way to negotiate for a better compensation. By allowing for structured settlement payment you can surely end up with a 20 to 30 percent higher claim money.Even though the option seems quite easy and straight, there are certain risks associated with this whole concept of structured settlement payment. The most basic risk is related to regular payment guarantee. What if your compensator ends up being a bankrupt? What if he dies before the settlement term expires? To answer these questions, you can bargain for insurance with regards to these possibilities while negotiating the terms of a structured settlement.

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