Structured settlements are financial agreements between a defendant and a claimant wherein the claimant receives payment in installments and not as a lump sum. There are reasons why people prefer to opt for structured settlement:
- Security for the Old- for senior citizens, this method is beneficial as it guarantees financial security in trying times. Apart from this, receiving smaller amounts of cash on a regular basis as compared to a lump sum money also ensures physical security against scheming people who could try to con the aged out of their deserving money.
- Worry-free Source of Money- Those who opt for structured settlement need not worry about elaborate and often confusing investment strategies. Handling a huge amount of money is no easy task, and often people with less know how about finance may find themselves unsure how to tackle the issue. In contrast to this situation, agreeing to receive periodic payments can ease these worries and the claimant can adequately plan its usage.
- Minimized Costs- a structured settlement can ensure that a mutual agreement is reached with minimum loss of time and risk. Often, a defendant visualizing a possibility of a greater loss if the case goes to trial and the occurrence of a greater liability offers a structured settlement to the claimant o lower his/her cost.
Thus, a structured settlement is quite profitable in many respects to both the claimant as well as the defendant.