What is a Structured Settlement?

Do you know exactly what a Structured Settlement is? It is an agreed upon through negotiation compensation either financial or an insurance arrangement where a claimant settles on to resolve a personal injury claim by receiving a partial or full payments periodically by payments on an agreed schedule instead of receiving a lump sum. A structured settlement can either be offered by the defendant in the case or it can be requested specifically by the plaintiff. It may be in the best interest of both parties to agree on a structured settlement to in some cases reduce legal and other costs by avoiding trial. Structured settlements can include income tax and spendthrift provisions. In most cases, the periodic payments will be funded by purchasing of one or more annuities, that generate the future payments. Structured settlement payments can be referred to as periodical payments, and when incorporated into a trial judgment may refer to them as “structured judgment”.

Client First Settlement Funding can help individuals who may need access to these funds due to unforeseen expenses. For example, if someone loses their job or needs extra funds to finance a new business. We are here to help create the financial opportunity you need at the most important moments of your life. A structured settlement can be a good option for many but it also can be a relief that there are services that can buy part or all of your structured settlement as needed.