A structured settlement is a financial or an insurance arrangement between the claimant
and the defendant, wherein the claimant agrees to receive the claim money through periodic payments instead of a lump sum amount. Structured settlements were first used in the United States and Canada; however, a number of common law countries have emerged in today's times such as England, Canada, Australia and the United States.
For instance, if you brought a tort claim against another party for causing personal injury to you and you won the lawsuit or settled out of court. In such a scenario you can either receive your claim money as a lump sum amount, or you can opt for a structured settlement.
Financial payments under a structured agreement ( structured settlement) can be customized as per the clients requirements at the time. You can either opt for a simple annual payment schedule, or you can opt for a more complex payment schedule consisting of an initial lump sum payment and subsequent deferred payments.
Structured settlements are beneficial for a number of people since it ensures a steady stream of income for them. Receiving a large sum of money in a lump sum can cause financial management worries and can result in dissipation of the money on useless expenditure. A periodic payment judgment can ensure that you are provided with an automatic way of effectively handling the claims money when you need it.