Through these uncertain times, a structured settlement offers a way to gain peace of mind knowing you have guaranteed money coming your way. And with courts closed across the country, more and more people are turning to settlements.
As COVID-19 has turned the world upside-down, you may want to make some special considerations if you’re establishing a settlement right now. Here are a few things to think about.
How will you provide for your future needs?
While a lump sum settlement might sound appealing, it can present some problems. To begin with, it can mean a hefty tax burden right out of the gate. Additionally, it may prevent you from being able to access need-based government programs. Plus, it means you have to monitor the spending of that lump sum. You become responsible for stretching it out to meet your future needs.
With a structured settlement, on the other hand, you get payments from your settlement at specific, predetermined times. This way, you always have the cash on hand that you need while avoiding major taxation or loss of access to benefits.
Do you want to have to worry about managing your money?
When life becomes uncertain — like it is right now — it’s common for people to embark on some emotional spending. If you have a lump sum in hand, it can be hard to resist this temptation.
With a structured settlement, your money is safely stored away. You don’t have to worry about unwisely spending a portion of it because you’ll know you always have your future payments to lean on.
Is your portfolio diversified?
In times like these, the importance of having a diversified financial portfolio becomes even more apparent. Within your settlement, you can combine insurance-based products like fixed indexed annuities and structured settlement annuities with market-based options like a settlement with an Index-Linked Annuity Payment Adjustment (ILAPA) rider or SettlementsPlus™.
Our team can help you build a diverse portfolio to ensure your settlement can best weather any financial storm.
Can you still access benefits or pay for medical expenses?
Your settlement shouldn’t prevent you from getting need-based government benefits, nor should the bulk of it get dedicated to your medical expenses. If you’re unable to work or have high medical costs, our team can help you explore your options — including a Special Needs Trust or Medicare Set Aside — to alleviate this pain point.
Are you set up for retirement?
You can start taking payments from a structured settlement now, or you can defer them. By waiting for a certain period of time, you can enjoy an earlier, more luxe retirement.
Clearly, there’s a lot to consider when establishing a settlement to best provide for your current and future needs. As experts in this field, our team at Quest Settlements is here to help. To learn more about your options and to make sure you can meet your needs and the needs of your loved ones, get in touch. We look forward to helping you weather the storm of COVID-19 by establishing the right structured settlement for you.