The Good Thing About The Settlement Method

The use of the structured settlement method has many benefits. Since its introduction in Canada in the 1970s, the benefits that this agreement carries have gained it much popularity that has lead to its blinding spread to the world. Here are a number of reasons that makes the settlement method good.

This method ensures more security to the two parties involved. When the regular payments schedules are made for a period, it creates security to citizens especially those living on fixed income. This is because they are able to accumulate enough amounts to pay rather than paying huge amounts that land them into bankruptcy. This offers security for the schooling children.

With this method, future financial worries are taken out of the way. This gives the sense that one has a fixed source of income in future. When receiving small amounts of money, chances of misuse are less and above all, unlike the lump sum, the small amounts are not taxable. This creates security to the payee. Moreover, they can be arranged to last the lifetime of the recipient.

Another reason as to why the settlement is good is that it seldom affects the Social Security benefits of a person. This means that the amount of money received will be more per every payment. This helps the people under fixed payment a lot. These arrangements can moreover not be touched in the occurrence of a divorce and creditors can not be able to claim them.

The structure settlement payments have been found to be cheaper than the lump sum. This is because they are able to eliminate the lengthy and expensive court proceedings. Moreover, the amount one gets is not taxable.

This mode of payment can be quite helpful in most situations. This is especially so when one is undergoing medical treatment or the rehabilitation process. There are so many reasons to turning to this method.

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