It may so happen that due to some reason, an insurance company is liable to pay huge amount of money to you. It may be due to death of some of your family member or may be an accident insurance claim. In such case, it may not be possible for the insurance company to pay such huge sum of money at one go.
They generally prefer to make the payment in installments and the period and amount of payment will be mutually decided between the company and the recipient. This method is known as purchase structured settlements.
In purchase structured settlements, the insurance company will pay you interest since they are taking enough time to pay your due amount. So, you must know how to make best use of purchase structured settlements.
Before going for purchase structured settlements, one must make a clear picture of his or her requirement of cash in the future years. This will help you to structure your income in such a way that you will be easily able to meet your future needs. Just remember that if you plan to go for purchase structured settlements, you will end up getting more money at the end of the day.