What Is A Structured Settlement
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The lump sum settlement is the traditional method for settling a case.
What is a structured settlement. 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. You should take a lump sum settlement for all small settlements and most medium sized settlements less than 150 000 or so. A structured settlement is often funded with structured settlement annuities customized with tax advantages.
Structured settlements can also start high and decrease over time. 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. The defendant sends you a check you cash the check and the case is over.
Structured settlements can also be designed to step up payments over the years starting relatively low and ending higher. Advantages of a structured settlement. 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.
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