Structured Settlements Definition

Define structured settlement fundamentals explained. A structured settlement pays out money owed from a legal settlement through periodic payments in the form of a financial product known as an annuity.

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Structured Settlement What Is A Structured Settlement Payment

Structured settlement is an agreement in a lawsuit by which specific payments are made over a period of time.

Structured settlements define. Structured settlement the judgment or final agreement in a lawsuit where one party usually the defendant pays the other. Structured settlements were first utilized in canada after a settlement for children affected by thalidomide. Youre not signed up. Although structured settlements can offer comfort for a time period this technique of payment may create problems for those who require liquidity so as to deal with current financial obligations. Under a structured settlement a victim will receive compensation for life time. Structured settlement annuity definition a structured settlement is a kind of annuity that pays out an award from a civil lawsuit by spreading the payments out over a long period of time. Structured settlement annuities a type of annuity that is used to structure the payment of a significant lump sum amount over time such as a legal settlement or lottery winnings. If you didnt know its not unusual for structured settlements to be funded with annuities. Definition of structured settlement. A structured settlement surely does offer a reliable future financial guarantee as compared to a lump sum payment given all at once. 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. A structured settlement is a financial or insurance arrangement defined by internal revenue code as periodic payments. A type of annuity. Equity indexed annuities a type of fixed annuity that is often confused with variable annuities is the equity indexed annuity or eia contract. That requires a fixed number of payments made over a fixed period.

However many legal settlements offer a lump sum payment option which provides a one time sum of money. Structured settlement protects a victim from economic loss and hardship. Structured settlement definition definition. During a civil suit the defendant may be obligated to pay settlement money to a victim or they may come to an agreement on their own terms. Structured settlement an agreement in settlement of a lawsuit involving specific payments made over a period of time. Property and casualty insurance companies often buy life insurance products to pay the costs of such settlements. Dictionary term of the day articles subjects businessdictionary business dictionary dictionary toggle navigation. As part of the negotiations a structured settlement may be offered by the. A claimant accepts to resolve a personal injury tort claim or to compromise a statutory periodic payment obligation. This agreement is much favored by defendants in lawsuits.