Structured settlement is a contract or a financial arrangement wherein the insurance company makes payment for damages on a periodic basis to the injured party. For instance, if an individual files a claim making use of the tort suit for compensation and the lawyers feel that they are loosing their grounds and the case is going against them, then they can file for structured settlement. This simply means that they do not have to pay the person the compensation in a lump sum amount, instead they can make quarterly or periodic settlements.
This payment is made towards the settlement of bodily injury liability claims to the beneficiary or a member of the family to whom the settlement is awarded. These are just a few examples where structured settlement benefits can be used. Gaining popularity, these settlements are fast becoming a preferred choice due to the substantial benefits they offer to all parties involved in the settlement agreement.
There are quite a few benefits that a structured settlement annuity provides and tax free payment stream is one among the many advantages. Among the many investment options such as stocks and bonds, real estate and savings accounts, the degree of flexibility that a structured settlement annuity offers is incomparable. The structured settlement is to be payable by a person who is either a party to the suit or workers' compensation claim. Structured settlements are a great option for clients and thus offers ideal solution. Moreover, the flexible payment options helps clients balance their finances and allows them to continue paying their bills regularly.