The legal practice industry has many sectors that are divided for the sole purpose of making it easier for people to find the help they need.
Each category makes it simpler for people to know what they need and how to get help whenever they need it.
Structured settlement is one of those industries.
It deals with structured payment schedules over a specified duration. Any party involved in the lawsuit can request for a structures after which it is only considered when the both parties agree in the terms.
This type of settlement is usually divided into two categories namely taxable and tax free.
The structured settlement industry has been in place since the 1970s and has been growing ever since. This is because it brings some beneficial aspects that are not found in other settlement modes.
One of the major benefits is the payment guarantee that is beneficial to both the defendant who is able to make affordable payments and the plaintiff who gets their payment in time.
The support of many government institutions have been instrumental in the growth of the structured settlement industry since its inception. The IRS for instance, has put in place several regulations to provide guidance to users such as tax reform act (1986) and small business job protection act (1996).
Other bodies that have helped document such regulations include American association for people with disabilities, national structured settlements trade associations and claims and litigation management alliance among others. Compared to the first years when the industry didn't have much support, these associations and institutions help in enforcing the rules of the structured settlement industry, which in turn ensures that more people get help and the industry grows.
Apart from insurance companies giving the structured settlement annuities, there have been other payment methods that involve use of property have also been created. Another change in the structured settlement industry has been in the way the companies involved use more effective ways to reach their goals. This has come about because of the less results that were initially seen in the industry.
Conclusion: The Structured Settlement Industry
Structured settlement industry has grown in many different ways making it better for everyone ranging from children to adults. It has grown to include market based funding which unlike fixed indexed annuities, involves direct market investment of properties.
The settlement can help prepare for one’s future such as college education or life savings. It also helps with protection of properties that could have a decreased value in the future.