What is a Structured Settlement?
Easily put, a structured settlement is a financial agreement to receive periodic payments (weekly/monthly/annually) rather than a lump sum payment in situations like insurance claims, court settlements or lottery winnings.
Why Lump Sum May Be Better
If you’re in a situation to receive a structured settlement you may want to look into a lump sum payment instead. There are advantages to structured settlements like being able to budget the smaller amount; and you have to be careful to avoid the temptations to ‘blow’ the lump sum money. When we have a healthy bank account we feel ‘rich’ and convince ourselves to spend the money in ways we normally wouldn’t. It’s not until the money is near gone that we appreciate what we had. If you do look into a lump sum, before you even touch the money, make sure you talk to a professional financial adviser to make sure you do the most financially responsible things!
The other advantage to lump sum payments, is that you may be given an opportunity that you otherwise would have to wait to do with a structured settlement like buying a house, car or fully funding your child’s education sooner rather than later. As long as you’re smart about your money why not take the lump sum and invest it the way you want? The final thing to think about when trying to decide is death. I know no one wants to think about dying but, in Canada at least, you cannot will things like lottery winnings, so if you die, so do future monies owed to you. Having the lump sum invested assures that it becomes a part of your estate.
Whatever you decide, be smart about it!
This $1000.00 giveaway is co-hosted and brought to you very generously by www.structuredsettlement-quotes.com/ and runs until January 31, 2013.