Wolf Pack Inc

Many people who have received a large settlement from an injury at work through a worker’s compensation claim or automotive injury have a strong desire to get the cash for their structured settlements in one big lump sum.

While it is understandable that a person with bills that have piled up over the time they have been waiting for the judgment to be announced would want all of their money at once, the fact is that most courts do not approve a lump sum annuity payout for mainly one reason.

The reason most courts do not approve of awards made in this manner is that quite a few people who did in fact receive a lump sum payout in the past have quickly found themselves broke and out of money after squandering the money because they had no idea on how to handle the windfall.

Now the state finds them back on the welfare rolls not only applying for food stamps, but also draining money from the state’s medicaid system for the continuing health care of their injuries.

What we find nowadays is that a court will usually make the award in some type of structured settlement in that the person receiving the payout receives their money over time on a monthly or a once a year payment and will continue to receive that money for twenty years or more.

After the award is granted by the court system the money is usually placed in some sort of annuity type investment by the insurance company who is paying the money to the victim or injured person.  This money is generally invested in some sort of guaranteed investment vehicle such as an annuity or treasury bills from the U.S. government that will pay out interest over time and then is doled out on a schedule according to the court’s instructions.