What Is A Structured Settlement

Payments decrease over time.

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. Structured settlements can also be designed to step up payments over the years starting relatively low and ending higher. Structured settlement brokers a special type of insurance agent consult as a case approaches settlement. Structured settlements can also start high and decrease over time.

For more about brokers see national structured settlements trade association. This might be of benefit if you expect your income to increase over time. The key differences between both annuity settlement options are the long term security and. A structured settlement is often funded with structured settlement annuities customized with tax advantages.

The lump sum settlement is the traditional method for settling a case. 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. However many legal settlements offer a lump sum payment option which provides a one time sum of money. Advantages of a structured settlement.