WHAT IS STRUCTURED SETTLEMENT?
THE DEFINITION OF STRUCTURED SETTLEMENT?
In the most general terms, a structured settlement refers to a set of scheduled payments from one party to another. Typically, a structured settlement is established after one party successfully sues another in court and the other party is ordered to pay a specific, usually large, sum.
What will the winning party be awarded?
Instead of receiving a lump sum, the winning party is awarded a structured settlement, which means the amount will be paid out in equal installments over the course of a set period of time.
What is the difference between structured settlement and an annuity
A structured settlement is different from an annuity, which is an insurance product the owner has purchased that pays out a structured amount over a set period of time based on the original amount invested and any additional investments made by the purchaser. Annuities are typically used as part of a retirement strategy, where money is saved and invested throughout the purchaser’s working years and then paid back in installments once the purchaser retires.