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What is a Structured Settlement?

A Structured Settlement is an Agreement for one party, typically an Insurance Company, to pay another party, some future disclosed amount of cash Results from some form of accident.

What documents are “created” in a Structured Settlement

  • Structured Settlement Agreement
  • Qualified Assignment
  • Annuity Application
  • Annuity Policy
  • Court Order Approving Minor’s Claim

These payments may be scheduled for any length of time -- even as long as the claimant's lifetime -- and are structured to meet the financial needs of the claimant. Payments can be in equal amounts or can vary. They may include future lump sums.

A structured settlement arrangement may be agreed to privately, as in a pre-trial settlement, or it may be required by a court order, as in a settlement or judgment involving a minor.

A structured settlement is a proven, effective solution for the needs of personal injury claimants. Claims professionals, plaintiff attorneys, judges and defense attorneys advocate the use of structured settlements because they can effectively meet a claimant's needs for security, and provide more benefits over time than a single, lump sum settlement because of applicable tax rates.

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