What Is A Structured Settlement

A structured settlement is a negotiated stream of periodic payments for damages in settlement of a personal injury wrongful death or workers compensation claim or lawsuit.

What is a structured settlement.

A structured settlement is a negotiated financial or insurance arrangement through which a claimant agrees to resolve a personal injury tort claim by receiving part or all of a settlement in the form of periodic payments on an agreed schedule rather than as a lump sum as part of the negotiations a structured settlement may be offered by the defendant or requested by the plaintiff. Advantages of a structured settlement. The lump sum settlement is the traditional method for settling a case. Structured settlement brokers a special type of insurance agent consult as a case approaches settlement.

Payments decrease over time. A structured settlement pays out money owed from a legal settlement through periodic payments in the form of a financial product known as an annuity. Structured settlements can also be designed to step up payments over the years starting relatively low and ending higher. The defendant sends you a check you cash the check and the case is over.

The key differences between both annuity settlement options are the long term security and. For more about brokers see national structured settlements trade association. A structured settlement is often funded with structured settlement annuities customized with tax advantages. However many legal settlements offer a lump sum payment option which provides a one time sum of money.