Disability pension in the form of a structured settlement

It is important to get independent advice when accepting any settlement for injuries, illness or disabilities resulting from any action from a person/persons or another legal entity such as a corporation

It is so tempting to see a lump sum as the most attractive option to settle a claim. Experience tells us that most likely this is not the best option. Often the money can be frittered away on consumer goods and the like and leave the persons without income in the future. Whereas a pensions is usually indexed and payed for life. Even say a 200,000 dollar lump sum payment can be easily frittered away with say a new car purchase a holiday a new wardrobe and the like. Whereas a ongoing payment will ensure there is always sufficient funds for utilities and food.

This is especially important where a person is quite young and expected to live for some time. A lifetime pension in this situation will always be better than a one off lump sum.

Sometimes you can be offered both a partial lump sum and an ongoing lifetime pension. This option should be fully evaluated by an accountant and a financial planner in consultation with your lawyer before acceptance is made...

More by this Author

Comments 1 comment

Julie-Ann Amos profile image

Julie-Ann Amos 8 years ago from Gloucestershire, UK

Nice hub, have linked it from one of mine

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.

    Click to Rate This Article