We all have heard about structured settlements, but we aren’t fully aware from it. Basically, structured settlements are monthly installments of a certain amount, which is to be paid to the petitioner by the respondent for his/her loss or damage, caused by the actions of respondent.
The judgment is passed by the honorable Court after the completion of trial and if the company or individual, who is responsible to pay the sum ordered by the honorable Court is not able to pay it on lump sum basis, then there is a provision in law that allows the respondent to pay the amount in installments.
These installments are known as structured settlements. People, who are entitled to get these installments of structured settlements, usually prefer to sell their structured settlements to get the entire amount at once. There are countless benefits of purchasing structured settlements. Some of them are mentioned below:
1. SECURE INCOME
What are structured settlements, well there are many benefits for investors in buying the structured settlements. First of all if you are investing an amount, you will get sound payments for an agreed time period, without any hitches or hiccups. Moreover, the profit over your investment will be hefty enough to meet your income needs. Excluding the other risk parameters, it is the best way to earn a hefty profit every month without moving an inch.
2. FREE FROM TAXES
Mostly these settlements are tax free and that is the biggest catch for investors. From investors’ point of view, you will save the entire amount that you would be paying in taxes if you would have invested your amount on something else. Therefore, from this aspect, it is also quite beneficial for investors.
3. PREFER PURCHASING, WHEN THE ECONOMY IS DOWN:
Try to purchase these settlements, when there is a downfall on economy. In these circumstances, people usually sell there assets on bargain rates, just to get some amount. Therefore, it is considered as the right time to purchase settlements on bargain rates.
4. POINT OUT YOUR BENEFITS IN THE AGREEMENT:
Draft your agreement wisely. Just write down those clauses, which will be beneficial for you. Ensure your safety and benefits after the rights of settlements are transferred on your name.
5. FORECAST FUTURE INTEREST RATES:
Forecast the upcoming interest rates. If you see that there will be decrease in the interest rates, then it is certainly the right time to purchase settlements. As much decrease there will be as much benefited you will become.
What are structured settlements, There are many more reasons to purchase settlements, but all you need is a foolproof policy and vigilance to get the best deal.
