Structured Settlement Investments

structured settlement investmentsStructured settlement investments are financial vehicles based on a schedule of payouts adding up to a large amount. This is often the result of a compromise agreement resulting from an injury inflicted by one upon another. This set up is beneficial to the parties involved and the following are these benefits redounding to the parties to the agreement.

Benefits for the recipient:

  • Payments are ensured over a period of time. This scheme would avoid the ‘one-day millionaire’ syndrome wherein the cash allotted for some purpose would unfortunately be spent haphazardly or negligently. The structured settlement investment would be a payment done at specific periods of time, either monthly or bimonthly.
  • Payments are ensured to be made in full.  In a structured settlement investment, the payout amount would be fully realized, albeit over a period of time. The amounts are insured with an amount that fulfills the value payout regardless of any financial condition.

Benefits for the payor:

  • Payments are not a burden. As this is a clear expense imposed with force of law, structured settlement investments need to be paid out and with the many insurance companies ready willing and able to undertake the obligation to pay for a fee.
  • Liability is formally addressed. For the one causing the injury, all liability would be compensated, allowing for a future free of any legal complication regarding this matter.

The whole market also benefits from the institutionalization of structured settlement investments. These benefits in general are as follows:

  • The courts are unclogged. Gone are the days of long winding cases on liability as compromise can easily be reached with structured settlement investments.
  • The insurance market is revitalized. This is another aspect of insurance that provides much needed funding sources that can provide more funds for the market to flourish.
  • The medical industry is assured of funding sources. Instead of relying on government aid programs, rehabilitation as well as other medical expenses would be paid out in cash from an actual funding source.

 

Structured settlement investments summary

All of this begs the questions, are structured settlement investments financial vehicles worth their weight in gold? The response is a resounding yes. Aside from the aforementioned benefits, the financial benefits redound to the investor. This is because the payouts are stretched over time, the money can then be utilized for other purposes to earn yields yet the principal remains. This is the golden egg for investors in structured settlements, as this is where yields are obtained for the benefit of the investor.

Clearly, there is nothing but positive benefits that can redound from structured settlement investments. The aforementioned are clear indications of its effects not just to the recipient, but for the payor itself. From a third person’s point of view, the business of structured settlement investments also is a financial avenue that provides not only high yields but also provides a business that is long term in a growth area of the economy in the long run.

If you want to find out more how structured settlements investments work, read about settlement examples.

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