Structured Settlement
Understanding Structure Settlements
A structured settlement is the payment of money that is received for a
personal injury or workers' compensation claim where all or part of the
settlement calls for future periodic payments. The structured settlement
is generally composed of a combination of an immediate lump sum cash
amount and a series of future periodic payments that are specifically
designated to meet the needs of the individual claimant. The structured
settlement is usually set up as an annuity, which cannot be pledged for
collateral for a loan and is usually dispersed monthly, quarterly or
semiannually.
Initially, for most people at the time of their structured settlement,
the payment plan appeared to make sense and would meet their needs.
Unfortunately, life never seems to work out the way we plan it. A
financial emergency, unforseen medical expenses, etc. can really affect
how you live your life and put a dent in your finances. There are now many
programs whereby a person can access their structured settlement.
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