What are structured settlements in Ontario Personal Injury Law?
Structured settlements are compensation a plaintiff receives for their injuries in installments over a fixed period of time. They are strictly available for people negotiating personal injury settlements. A structured settlement can be tailored to the plaintiff’s needs, with compensation distributed in bi-weekly or monthly increments over a minimum of five years, or delivered as a lump sum years down the road. There are plenty of options to choose from, and you can customize them as you like. The structure, however, cannot be modified once it has been confirmed.
Why Should You Choose a Structured Settlement?
- Settlement money is typically used to provide for lost wages and pay for medical care needs. They provide long-term financial security, which is why Injured parties are often hesitant about taking risks with this money.
- Earnings on regular investments are taxable, and most high-return investments are unpredictable and come with a yearly management fee. Earnings from ordinary investments may also prevent you from receiving certain government benefits and credits. Structured payments, because they are not considered income, allow people to maintain their eligibility while keeping money in their pockets.
- Because a single payout may be spent quickly, spreading the money out over a long period of time offers a more stable financial future.
Are There Any Downsides?
- Although structured settlements sound like the most ideal way to compensate for personal injuries, they do have their downsides.
- Their lack of flexibility, once put into place, may throw some plaintiffs off, and sometimes you may just want to get it over with and receive a lump-sum payment.
When it comes to collecting your compensation, the decision is entirely yours. To be sure the option you choose is a fit for you, speak with one of Pranzitelli Law Firm’s experienced personal injury lawyers.