Structured Settlements
A Structured Settlement is a method of paying damages to a plaintiff (the injured party) over a period of time when
a lawsuit has been settled. A structured settlement most commonly
results from a personal injury lawsuit involving:
- Liability
due to a faulty product.
- Motor vehicle accidents such as collisions.
- Wrongful death lawsuits.
- Medical malpractice lawsuits.
When the outcome
of a lawsuit results in a settlement, the damages awarded are funded in the form of an annuity contract issued by an insurance
company. This settlement is structured as follows:
- A company
(typically an insurance company) is selected by the defendant to structure the settlement.
- The structured settlement company purchases an annuity contract and sends the payments from the annuity to the plaintiff.
The payments are fixed in time and amount.
- The structured
settlement company retains ownership of the annuity even though the plaintiff is the beneficiary.
Be sure that you check your state's laws regarding assignment of assigning
structured settlements. Our Consultants can often purchase settlements that plaintiffs have been told are non-assignable.
Contact us for further information and assistance in this area. If you are receiving payments from a structured settlement
and need money, contact us for additional information on how we can help.