Structured settlements are innovative alternative channels for compensating personal injury claims. Structured settlements are different from others as they are over a period of time. Instead of the victim of a one-time lump sum amount, they get a stream of tailored payments.
This way, they have a steady income that caters to their basic needs and expenses. These structured settlements are favorable as they are tax-free. This in turn encourages more people to consider it.
Read on as we discuss the various types of structured settlements in existence.
Personal Injury
When a person’s action or inactions result in personal injuries to another party, that person may institute case litigation. The purpose of instituting this legal process is to prove negligence by the other party. When established, one can seek compensation in monetary form for the injuries sustained.
The plaintiff may get structured payment to help support themselves and their dependents.
For more information on structured settlements, don’t hesitate to consult Rightway Funding.
Workers Compensation
In 1997, President Clinton signed the Taxpayer Relief Act of 1997. This facilitated the adoption of the structured settlement for workers’ compensation litigations.
This law allows workers who suffer injuries while on the line of duty to bring proceedings against the employer. The worker gets compensated through structured settlement. This compensation covers the period of time when the worker can’t go back to work.
Wrongful Death
Wrongful death lawsuits arise when a party dies due to another party’s deliberate intention or negligence. Wrongful death litigation aims at getting compensation to the victim’s family. This helps them cater to funeral expenses, medical expenses, and lost finances.
A structured settlement is applicable in wrongful death settlements. It offers a very convenient tool that allows for steady payments to the deceased family. With this, families can live on without fear of financial pressures due to lost wages.
Medical Malpractice
It so happens that medical practitioners may cause further harm or even death to a patient in their care. What happens next to the dependents of the deceased person? While nothing can bring them back, the best structured settlement can be made to the family or beneficiaries.
This eases the expenses, lost income, or even emotional pain caused by the death of their beloved one.
Wrongful Imprisonment
There have been over 2,500 people exonerated after wrongful since 1989.
Wrongful imprisonment has lasting mental effects on a victim and their family. Nothing can compare to the agony suffered and time wasted.
The victims can institute proceedings against the government for compensation. This may offer some relief and also monetary compensation.
Learn More on these Types of Structured Settlements
Learn more about these common types of structured settlements. This way, you’ll choose the appropriate structured settlement to ensure financial stability.
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