The Definition of A Structured Settlement
Filed under: Structured Settlements — Structured Settlement Expert @ 10:25 am
Through the process of a personal injury case, two teams of attorneys typically represent the parties; one team represents the plaintiff who feels that their injuries were caused by the negligence of the other party, and the other team represents the defendant – the person or entity that denies any liability. Depending on the circumstances of the case the defendant may choose to offer the plaintiff a financial settlement as restitution for their injuries; this settlement can cover – among other things – medical bills, lost wages, damage to property, as well as pain and suffering.
In some cases, the settlement is made in a lump sum payment. But in many cases, if a financial award is made it is arranged as a structured settlement. In the simplest of terms, a structured settlement is a periodic payment plan. According to the specific terms of the structured settlement the claimant will receive payments at specific times through a third party annuity.
In some cases, the plaintiff – once they begin to receive the structured settlement payments – may find that the arrangement does not meet their current needs and that they would prefer a lump sum payment in order to meet financial obligations. In such a case, the plaintiff will often turn to a reputable company that buys structured settlements outright. In exchange for a lump sum payment on their structured settlement annuity, the plaintiff assigns all or part of the structured settlement annuity payment to the buyout company. The plaintiff is then able to have access to a lump sum to make appropriate decisions regarding their financial future.
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