The concept of structured funding has existed for years and the settlement can be done with the help of a plaintiff. Although it takes a bit of time, but you can be rest assured that the money will be paid off in time. The time taken to pay off the settlement will depend on the type of settlement. Normally, the minimum time is two years and the maximum is up to lifetime. However, you should not confuse structured settlement with pre-settlement funding. They are totally different and most importantly, the structured settlement will be guaranteed by a government bond. The basic reason for structured settlement is compensating for the mistake that the other person has done and as a result of which you are suffering either physically or financially.

Funding for Settlements

One of the basic differences between a structured settlement and lawsuit settlement is the funding for these settlements. For structured settlement, you can get in touch with the best structured settlement funding company and they would arrange for an insurance company from where the money will be funded. However, for lawsuit settlements, the funding is done entirely by the person who is at fault. You will not have to think about how he is arranging the money. For a structured settlement, the person who is compensated will not be able to get his settlement from the lawyer. Lawsuit settlements can be availed by anyone and everyone. This is nothing, but a part of the total compensation that will be paid to the victim.

Risks Involved

A big reason why structured settlements are preferred over lawsuit settlements is because the latter involves a high rate of interest. The lawsuit settlement is like a loan that is given and the rate of interest is very high. So, when the day of final settlement arrives, you will see that after the deduction of interest, the amount of money that you are getting is quite less compared to the amount that a structured settlement would have given. So, before you file a claim, be sure about the terms and conditions because a small mistake in your decision may well prove to be costly.


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