A structured settlement is a financial or insurance agreement based on periodic
payments that a claimant accepts in order to resolve a personal injury tort claim or to compromise a statutory periodic payment obligation. Structured settlements were first utilized in Canada. Every country has its own definition, rules, and standards for structured settlements. Structured settlements can include income taxes, spendthrift requirements, and benefits. The settlements are affected by Medicaid and Medicare laws and regulations. Structured settlements help with tax avoidance and in some incidents people can do not have to pay taxes. Minors can benefit from a structured settlement. An injured person who has long-term special needs can also benefit from structured settlements by having periodic lump sums with which to purchase medical equipment or modified vehicles. The only negative side about a structured settlement is that you may get trapped with the periodic payments.
When you have a structured settlement many companies may try to buy it from you or sell it for you. There are laws now that prohibit the ability of companies to do that. Depending on where you live and what your annuities are determines whether you will be able to sell your structured settlement. Insurance companies have a way of misleading people into agreeing to structured settlements. There are a few things that everyone should look at before considering a structured settlement such as excessive commissions, overstated value, self dealing, life expectancy and using multiple insurance companies. Once you complete a structured settlement agreement you can not change it. If you get a minimum payment option for a structured settlement and then do not live long afterwards, it will help your family members with financial options. All structured settlements are flexible and are used to fit your needs. Structured settlements are not for everyone so it is a good idea to talk to an attorney before signing an agreement.