Structured settlements are options for many plaintiffs in lawsuits ending in a settlement. Settlement amounts vary depending on lawsuit and the situation. The most common lawsuits that end in structured settlements are personal injury and wrongful death suits. It can be hard to know if a structured settlement is the right choice for you when you’re involved in a settlement. Check out this guide to find out: when is a structured settlement a good idea?
When the plaintiff is getting more than $150,000 in settlement funds
Plaintiffs receiving less than $150,000 as a settlement amount can still benefit from a structured settlement, but it’s rarer. Settlements exceeding $150,000 are typically more difficult to manage, and structured settlements help people with little experience managing large sums of money budget, make the money last, and make worthwhile investments.
When the plaintiff needs help managing the money
If the plaintiff doesn’t have a lot of experience managing large sums of money, then a structured settlement is likely a great option for them. Structured settlements make sure the money lasts. In a majority of settlements, even people who believe they can manage the money themselves end up spending it all within the first five years. A structured settlement ensures the money lasts as long as it’s needed. Other financial reasons to opt for a structured settlemet include a past of financial difficulties, past mismanagement of money, or personal expenses that exceed income.
When the plaintiff has immediate and future financial needs
When a plaintiff has immediate financial needs, such as medical bills, structured settlements can be greatly benefit them. Structured settlements are customizable, so the plaintiff can take care of their immediate financial needs with a partial lump sum payment at first as well as their future needs with structured monthly payments. Lump sum payouts are best for immediate but not future financial needs, while structured settlements can look out for both.
A plaintiff should ultimately consult his or her lawyer for more information on whether a structured settlement may be right for them. There’s a lot of misconceptions about structured settlements to watch out for, so bringing on a financial consultant can help a plaintiff and their legal team find the best settlement plan.