Structuringdoesn’t initially seem to be an appropriate settlement strategy for plaintiffs over fifty. It makes more sense to receive a lump sum that they can spend on things they want or the vacation they’ve always dreamed of. But, contrary to popular belief, structured settlements provide a good retirement plan for older adults. Read some of their benefits below.
Receive a Stable Income
Many personal injury claimants and lottery winners squander their cash in a short time regardless of the size of their compensation. Structured settlement buyers protect you from that. When you sell them your payout, they give it back to you in the form of an annuity. It’s a more secure way of receiving income: you refrain from living beyond your means, keep yourself safe from predators who want your money, and avoid putting your assets in unreliable investment options.
Maximize Social Security Benefits
Since settlement companies provide senior plaintiffs with a sufficient monthly income, you can defer taking your social security benefits until a later time. At the earliest, you receive them when you’re 62. But with structures, you have the option to get them at 65 or 70, where you can enjoy up to a 25% increase in your payment.
Avoid the Probate Process
When you take a lump sum payout, any remaining funds at the time of your death become part of your estate. And, before that money is passed along to your children or their children, it goes through a long and expensive process called probate, which reviews the legitimacy of your heirs. But,if you sell the payout to a structured settlement buyer, the rest of your funds will go straight to your beneficiaries.
Personalize Your Legacy Plan
Say you want to invest in your grandchild’s college fund. If you put your money in a 529 or other savings plan, your family member won’t be eligible for any need-based financial aid by the time they enroll in a university because sponsors will think your loved one has the money to pay for school. That savings can keep them from getting the additional help they need. However, if your settlement is with a factoring company, it doesn’t show as residual income and doesn’t impact any other assistance opportunities.
If you’re a personal injury plaintiff over fifty, don’t sell yourself short. There’s a structured settlement buyer out there willing to help you put your money to good use. Selling your payout is a sure-fire way to make it last a long time.