Structured Settlement | Lump-Sum Settlement | Annuity

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What is a structured settlement annuity?

A structured settlement annuity is periodic cash payments through an annuity system that is commonly used to compensate personal injury victims for their losses. A Structured settlement annuity is an alternative payment option to a lump sum cash payment and is devised to provide you with regular payments over a period of time.

Special legislation in 1982 by the U.S. Congress allowed this as a way to make substantial settlements more agreeable to both parties of a lawsuit and provide a level of protection to victims.
 
Because of this, many people do now opt to receive structured settlements instead of a lump sum payment and courts often award them in civil suits where there will be long-term living expenses and the necessity for obtaining cash payments at some point in the future.

Under a structured settlement annuity, the victim will receive compensation over an extended period of time sometimes over their lifetime instead of a large lump sum payment. A structured settlement helps to protect the victim from financial hardship while making the payout less of a blow to the defendant.