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Structured Settlement ? Beneftis Of Receiving A Structured Finance Articles | January 25, 2012
If you have been in a car accident or a work related accident and are entitled to a settlement it may be a good idea to receive a structured settlement. A structured settlement or annuity is a settlement with insurance company or person at fault that is paid in periodic payments instead of in one big lump sum.

If you have been in a car accident or a work related accident and are entitled to a settlement it may be a good idea to receive a structured settlement. A structured settlement or annuity is a settlement with insurance company or person at fault that is paid in periodic payments instead of in one big lump sum. This can be an ideal situation for someone who receives on a settlement of this nature. One of the main advantages of receiving a settlement in payments over time instead of one big lump sum is that they are not subject to taxes. Is there any better phrase in the world than ?tax free?? This makes them much simpler to manage and track because the added pressure of keeping track of tax matters related to a settlement are not in play. A lot of lump sums are also tax free but any income that is made from investments related to that income will be taxed.

Structured settlement

Structured settlement is tax free at both the federal and state level. Another benefit of receiving a structured settlement is that a steady cash flow may be smaller but it can be easier to manage. Receiving a large amount of money can cause some people to not know how to handle it and waste it on things that they do not need and give it to friends and family members looking for a handout. The saying ?You can?t spend money that you don?t have? really comes into play here. If you are eligible for a settlement from an insurance company as a result of an accident it may be wise to consider having it structured. It can provide you with a steady stream of income for years to come. This type of settlement can be much easier to handle and less stressful than receiving the money all at once.

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