A Structured Settlement is a method of paying damages to a plaintiff
(injured party) over a period of time when a lawsuit is settled.
Personal injury cases typically are a result of:
Product liability
Motor vehicle
collisions
Wrongful death
Medical malpractice
Class action
awards
In such
cases, the parties involved often agree to have damages paid over a
period of years rather than in one lump sum. The damages are usually
funded in the form of an annuity contract issued by an insurance company.
Structured settlement annuities differ from other types of annuity payments
in that they are not subject to income tax. This factor lessens the
complications involved in purchasing them and makes them more accessable
to a funding source or investor.
