Structured settlements are structured cash payments through an annuity system that is established to pay injury victims for their troubled losses. Structured settlements are the other alternative payment plan to a lump-sum cash settlement. They are set up to provide payments to you over a specified period of time.
Structured settlements received special legislative treatment by the U.S.
Congress in 1982, as a way to make big settlements more easier for parties
and provide certain protections to victims.
As a result... many people now choose a structured settlement agreement
over a lump-sum payment, and courts often award them in civil
actions where there will be long-term costs of living and the
necessity for obtaining cash payments at some point in the future.
Under a structured settlement, the victim will receive compensation
over an extended period of time (often a lifetime) instead of
a large single payment. The structured settlement is a way of
protecting the victim from economic loss and hardship, while also
making the payout more acceptable for the defendant. |
