A Structured Settlement is an agreement between a personal injury
victim ( a Plaintiff ) and an Insurance company ( the Defendant )
to compensate the Plaintiff by the defendant with long term periodic
payments instead of a single cash lump sum.
Payments can be tailored to each individual plaintiffs needs, to help
meet expenses such as on-going medical and living expenses, education, children needs & support etc’ The fixed annuity payments are tax-free to the claimant, a cost-of-living adjustment (COLA) feature is available, that can help offset the effects of inflation over time, payments can continue as long as the claimant lives thus providing him the maximum benefits.
Structured settlements are encouraged by plaintiffs lawyers,
Courts, Insurance companies and the legislators alike as they all
agree it is the best solution to all parties involved especially for the
claimant.
The annuity can be transformed in part or in full to a cash lump sum
via private funds and should be approved by the Court. The funds
are most interested to make these deals as they are very profitable
to them because they take the long term tax free payments and in
exchange pay the annuity holder less than the face value but in cash.
These same funds are handling Lottery winners long term payments
into one single lump sum as well as all kinds services of cash against
future payments.
Source: http://www.ArticlePros.com/author.php?Amit Laufer
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