What Is A Structured Settlement Payment

However many legal settlements offer a lump sum payment option which provides a one time sum of money.

What is a structured settlement payment.

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. 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. A structured settlement is a settlement derived and negotiated from the result of a person or company winning a civil case. It s another often smarter way to receive a court award for damages other than a lump sum payment.

The company is a member of the national association of settlement purchasers. This is often necessary to cover attorney s fees and any medical bills that have accumulated during negotiations. Structured settlements are legally binding. In many structured settlements the periodic payments are supplemented by a larger lump sum payment that comes immediately after the settlement is finalized.

A structured settlement is a payment plan from personal injury wrongful death or workers compensation lawsuits. If you receive a structured settlement instead of the 300 000 cash you ll get payments over a term of years or your lifetime however you choose and each payment is fully tax free. 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. A structured settlement typically includes a lump sum of cash upfront one time to cover immediate expenses followed by guaranteed periodic payments tax free customized to meet the needs of the settlement winner.

That number has continued to increase.