Structured Settlement Annuity
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.
