What Is A Structured Settlement

The lump sum settlement is the traditional method for settling a case.

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. The key differences between both annuity settlement options are the long term security and. You should take a lump sum settlement for all small settlements and most medium sized settlements less than 150 000 or so. For more about brokers see national structured settlements trade association.

Advantages of a structured settlement. This might be of benefit if you expect your income to increase over time. A structured settlement is often funded with structured settlement annuities customized with tax advantages. 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.

Payments decrease over time. Structured settlement brokers a special type of insurance agent consult as a case approaches settlement. 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. The defendant sends you a check you cash the check and the case is over.