The Flexibility of Structured Settlements
Filed under: Structured Settlements — Structured Settlement Expert @ 8:10 pm
The end result of a personal injury case may often be the creation of a structured settlement. Those claimants who are awarded a sum of money following a personal injury case may sometimes be given a lump sum, but sometimes they are given a structured settlement arrangement through which they receive payments on a scheduled basis.
Structured settlement payments are sent directly from a third party annuity that has been set up according to the terms of a settlement agreement. The responsible parties are held accountable for funding the annuity. The claimant is then sent their payments from the annuity throughout the life of the structured settlement.
While details regarding total amount, payment schedule, and payment amounts are decided upon at the creation of a structured settlement, there is still flexibility provided to the recipient. In fact, should a need or desire for a lump sum of cash arise – rather than the continued payment structure – the recipient can choose to seek the sale of their future structured settlement payments.
By selling all or part of their future structured settlement payments, recipients have the ability to procure a lump sum of cash through a purchasing company.
Popularity: 42% [?]