Structured settlements are structured cash payments through an annuity system that is established to compensate injury victims for their losses. Structured settlements are also helpful with people who may have temporary or permanent disabilities, illegal death, serious injuries, or any other problem that results in the effect of the main wage earner of the household.

Structured settlements have not always been available. In 1982, Congress passed The Periodic Payment Settlement Act of 1982, which legally recognized structured settlement cases in physical injury cases, also encouraged people to use them by granting them tax-free status. This act allowed people to financially benefit and protect themselves from the dangers of a lump sum settlement meaning money that serves as a complete payment, and gave courts the ability to make such an award where there was a realistic potential for abuse of the proceeds of a lawsuit. The structured settlement is generally set up as some sort of an annuity that makes payments according to the prescribed and agreed upon schedule.

Structured settlements payments have been shown to offer a helpful, secure and guaranteed source of lifetime earnings to parties in personal injury or other cases.

Severe injury where there is long-term treatments and medical costs will necessarily be incurred, and to meet the family and living expenses. A person who has a temporary or permanent disability can use a structured settlement by being guaranteed the cost, if any of treatment is covered. If illegal death affects the main wage earner of the household then this can induce financial bankrupt, can assist put back the monthly income that is lost and offer the family piece of mind knowing the rent, bills, and other expenses are paid for.

Not everyone can receive a structured settlement. Only people with a physical injury and they must purchase the structure at the time of the settlement. Structured settlements are very safe. Structured settlements can have many different requirements and are subject to different laws.

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About The Author:


Jeff McLeod is a fixed index-linked retirement income annuity specialist.

To get a copy of the Buyer’s Guide visit http://www.happyretiree.com