A structured settlement is a periodic payment plan that is agreed upon between a plaintiff and defendant. It is used in many cases where the plaintiff is awarded a large sum of money.

Instead of receiving the compensation in a lump sum payment, the payments are spread out over a period of time that is decided upon beforehand.

In cases involving personal injury, a structured settlement is especially helpful. If the plaintiff is temporarily or permanently unable to work, a structured settlement provides them with a sense of financial security. The claimant will have a steady source of income which makes financial planning much easier.

The following information has been compiled to help those who may be considering a structured settlement plan or individuals seeking information on the topic of structured settlements.
What is a Structured Settlement?
How are Structured Settlements Taxed?
Structured Settlements: How long will I receive payments?
How much money is enough for a structured settlement?
What Is A Structured Order?
When Can I Get A Structured Settlement?
Who Should Consider a Structured Settlement?
Who should I talk to about structured settlements?
What are the benefits of a structured settlement?

Q: What is a Structured Settlement?

A: A structured settlement is a periodic payment plan that is agreed upon between a plaintiff and defendant. It is used in many cases where the plaintiff is awarded a large sum of money. Instead of receiving the compensation in a lump sum payment, the payments are spread out over a period of time that is decided upon beforehand.

In cases involving personal injury, a structured settlement is especially helpful. If the plaintiff is temporarily or permanently unable to work, a structured settlement provides them with a sense of financial security. The claimant will have a steady source of income which makes financial planning much easier. Another good reason for choosing a structured settlement is the tax benefits they have to offer.

A structured settlement is an agreement under which one gets paid over a specified period of time instead of a single lump sum in exchange for a release of claim or liability. Such liabilities may arise out of personal injury or other forms of claim such as workers’ compensation.

The payments can be made on monthly or yearly basis, or can even be spread over a recipient’s lifetime. More often than not such settlements include an immediate cash payment and are set up as an annuity usually orchestrated by reliable insurance companies.

However, a variety of compelling reasons like medical expenses or financial emergency may force recipients to sell their structured settlement payments because they need immediate cash and are in no position to wait out the terms of their settlement.