What S A Structured Settlement

With a structured settlement you receive your personal injury settlement or lawsuit award over time instead of in a lump sum.

What s a structured settlement. A structured settlement is often funded with structured settlement annuities customized with tax advantages. For more about brokers see national structured settlements trade association. A lump sum payment means that the defendant or the defendant s insurance company makes one payment to you and that payment settles the case however instead of a lump sum payment some plaintiffs opt to have their compensation paid out in a structured settlement. Millions in payments to child victims of medical malpractice were stolen by fraud.

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 gained popularity in the 1980s after the u s. According to the national structured settlements trade association almost 6 billion in new structured settlements are issued annually. It s important to weigh the pros and cons of accepting a structured settlement as they relate to your unique circumstances.

The majority of settlements in personal injury cases are lump sum payments. Congress passed the periodic payment settlement act. Structured settlement brokers a special type of insurance agent consult as a case approaches settlement. By carron nicks personal injury plaintiffs who win or settle their cases can often choose to take their winnings as a one time lump sum or as a series of payments over a period of time.