What S A Structured Settlement

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.

What s a structured settlement. 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. 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. For more about brokers see national structured settlements trade association. Congress passed the periodic payment settlement act.

With a structured settlement you receive your personal injury settlement or lawsuit award over time instead of in a lump sum. Structured settlements gained popularity in the 1980s after the u s. Structured settlement brokers a special type of insurance agent consult as a case approaches settlement. Before you agree to any structured settlement take these steps to protect yourself.

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. A structured settlement is often funded with structured settlement annuities customized with tax advantages. The majority of settlements in personal injury cases are lump sum payments.