A structured settlement is legal mechanisms used to pay out money to a person. There’s a big difference between ‘Annuity and Structured Settlements. In our previous post, we talked about ‘What are Annuity Settlement‘. By reading this guide you’re going to get an idea of structured settlements.
The structured settlement is a legal tool used to deliver compensation to those who have suffered a personal injury of some kind, or someone who has admitted liability. This could be for something as simple as breaking a leg or something as serious as wrongful death.
The amounts for structured settlements can vary from amounts as low as $100,000 all the way to multimillion-dollar settlements.
For example, you might agree to regular payments once a month. You might also agree to regular payments every year. It really depends on your needs and what the defendant wants to do. Both legal teams will discuss what’s best for the plaintiff’s quality of life.
Structured settlements are also customizable according to your needs. You can receive payments as big or as small as you like. While Annuities are relatively fixed in how often they pay out.
Is Structured Settlement Best Idea?
Structured settlements in court aren’t always the best idea. For smaller payouts, it makes little sense to have the money paid out in installments purely because the payments would be so small it would be pointless. Once you start hitting six figures structured settlements can be a great financial aid.
Do you have any experience taking out a structured settlement?