Structured insurance settlements are payments made to an injured claimant by an insurance company where the claimant bought the insurance policy. These payments are considered structured, because they are made over a period of time instead of a lump sum amount. The claimant does not receive the entire settlement amount as one payment. Instead, periodic payment is received.
The amount that the claimant receives from the structured insurance settlements is used to cover expenses, such as the present medical expenses or other future expenses. So, if you are injured in an accident, and you have an insurance policy, this is one benefit that you can get, especially if you suffer from injuries that inhibit you to work for the time being.
However, there are some unexpected expenses that may arise, and what if you do not have sufficient amount for this? You can sell structured insurance settlements to get enough money to pay for these expenses.
Selling structured insurance settlements may not be as simple as you think. Although it is legal to sell these structured insurance settlements, you still have to secure court approval. This process does not only protect you but your insurance company as well.
Some insurance companies thought that they will have to pay taxes as a result of this sale. But actually, the law states that the insurance company will not owe any tax as a result of this sale. This eliminates the barrier that you can encounter from a reluctant insurance company.
When you sell your structured insurance settlement, you get a lump sum amount to cover expenses. However, you must remember that this is not an easy process. This definitely takes time, and before you know it, the money that you urgently need takes longer than you have expected. That is why, it is important that you think about this action thoroughly before you make a decision.
