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A lump settlement is a single payment to the plaintiff. The structured settlement delivers the promised funds as a series of payments. Sometimes, a portion of the plaintiff’s award gets sent to the plaintiff as a lump sum, with the rest of the money delivered in installments.
Before being sent to the plaintiff, the compensation or award gets transferred to an insurer.
• That insurer is usually a life insurance company.
• Smart plaintiffs search for a highly rated company.
• The insurance company sends regular payments to the plaintiff.
Advantages linked to a structured settlement
Almost every aspect of the settlement can be negotiated:
-The plaintiff has the ability to state the span of time during which the payments should be made.
-Plaintiffs have the right to select the frequency with which the payments should be delivered.
-The plaintiff’s preference gets considered, when it comes time to decide on the size of each payment.
-A plaintiff that would like to receive a portion of the money as a lump sum has the right to state that preference.
-Plaintiffs can also state what should happen to the money owed by the defendant, in the event of the plaintiff’s death.
The plaintiff does not feel eager to make a large purchase. That could only be done if arrangements were made for obtaining some or all of the money, by using the services of a personal injury lawyer in Barrie. The plaintiff’s tax bill is small, because there is no money in the bank drawing an interest, and no money from stock dividends.
Drawbacks to structured settlement
Not all of the money due to the claimant/plaintiff has been made available to that same individual. That is the disadvantage that gets highlighted in the ads that have been funded by a company that hopes to free customers from a structured settlement. Some of the people in those ads mention a certain large purchase that they would like to make.
At times, structured settlements destroy the goal of the personal injury claim. The legal system established the personal injury claim as a way for victims of an accident to get back to their original position, in terms of their finances. That return to the original position often entails the paying of bills. Still, the plaintiff’s requested plan might not allow for the immediate payment of all bills. In other words, the plaintiff would lack the ability to pay off all of his or her accumulated bills.
Obviously, the same person would have a poor credit rating. Consequently, he or she would find it difficult to get the seller of a large item to go along with regular payments, each of which equaled some portion of that same item’s cost.