What Is A Structured Settlement Payment

One option is a structured settlement which includes periodic payments over time.

What is a structured settlement payment.

It s another often smarter way to receive a court award for damages other than a lump sum payment. Structured settlement brokers a special type of insurance agent consult as a case approaches settlement. For more about brokers see national structured settlements trade association. A structured settlement is a settlement derived and negotiated from the result of a person or company winning a civil case.

Also the payments from factored settlements are tax free. A structured settlement can include a large lump sum payment upon termination of the contract. A structured settlement often referred to as a structured settlement annuity is a long term stream of payments to someone a plaintiff who has won or settled a civil lawsuit with a defendant. 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.

Structured settlement payment rights can be bought in the secondary and tertiary settlement market. A structured settlement is a stream of periodic payments paid to an injured party by the defendant primarily through the purchase of annuity fixed and determinable issued directly by highly rated life insurance companies. The rates are affordable and combined with the need time continuum. A child recipient may receive regular payments while they are a minor and then one large lump sum to pay for their college tuition when they graduate from high school.

This series of payments is called a structured settlement. If you re on the winning side of a lawsuit there are different ways to receive the money you re awarded. Factored settlement payments are the result of obligations to payout sporadic payments under settlement terms. Whether you should opt for a lump sum payment or a structured settlement will depend on many factors including your tax liability how you plan to spend the money and whether you need assistance in managing a large sum of money.

A structured settlement is a stream of payments to a person who won or settled a lawsuit.