What Is A Structured 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.

What is a structured settlement.

However many legal settlements offer a lump sum payment option which provides a one time sum of money. 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. Payments decrease over time. 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. This might be of benefit if you expect your income to increase over time. Structured settlements can also start high and decrease over time. For more about brokers see national structured settlements trade association.

Structured settlement brokers a special type of insurance agent consult as a case approaches settlement. The defendant sends you a check you cash the check and the case is over. The lump sum settlement is the traditional method for settling a case. A structured settlement is often funded with structured settlement annuities customized with tax advantages.