What Is A Structured Settlement Payment

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.

What is a structured settlement payment.

A structured settlement is a settlement derived and negotiated from the result of a person or company winning a civil case. That number has continued to increase. A structured settlement is a payment plan from personal injury wrongful death or workers compensation lawsuits. The company is a member of the national association of settlement purchasers.

A structured settlement is a stream of periodic payments paid to an injured party by the defendant primarily through the purchase of annuity fixed and determinable issued directly by highly rated life insurance companies. It s another often smarter way to receive a court award for damages other than a lump sum payment. This is often necessary to cover attorney s fees and any medical bills that have accumulated during negotiations. If you receive a structured settlement instead of the 300 000 cash you ll get payments over a term of years or your lifetime however you choose and each payment is fully tax free.

In many structured settlements the periodic payments are supplemented by a larger lump sum payment that comes immediately after the settlement is finalized. Fairfield funding has been in business for 12 years and focuses on structured settlements and annuity payments. A structured settlement often referred to as a structured settlement annuity is a long term stream of payments to someone a plaintiff who has won or settled a civil lawsuit with a defendant. However many legal settlements offer a lump sum payment option which provides a one time sum of money.

A structured settlement typically includes a lump sum of cash upfront one time to cover immediate expenses followed by guaranteed periodic payments tax free customized to meet the needs of the settlement winner.