A structured settlement is typically made up of two types of payments. The first is as a cash payment, that is paid immediately to take care of the urgent needs of the claimant. The second type of payment comes from one of the chosen settlement annuities that is structured to provide future income, usually as a monthly payment. A structured resolution company may act as a structured settlement broker between the two parties involved. The structured arrangement company will typically gain a commission from the insurance company providing the annuity portion of the structured settlement.
Wrongful Death Resolution - Injury Settlement - Workers Comp Determination
A wrongful death determination, an injury resolution, a workers comp settlement or any other legal arrangement would be a candidate for a structured disposition. Typically a structured settlement would have court approval. Often times a structured disposition can be agreed upon prior to a court mandate. The attorneys for one or both parties may attempt to act as a broker. At other times they opt for the greater experience or greater objectivity associated with a professional structured settlement company.
Structured Settlement Company as Broker
Many times a third party is desirable to facilitate the parties in arriving at an agreement and a structured settlement company is utilized as a go between the two parties' attorneys. A structured resolution company will also typically interact with the insurance company in regard to the annuity payment option. An objective third party, such as a structured settlement company, may point out benefits of a structured arrangement to both parties and arrive at a more timely agreement concerning an agreement.
Structured Settlement Company and Claimant Benefits of Structured Dispositions
A structured settlement company facilitates the structured settlement to meet the needs of both parties. The following may be considered as benefits of a structured settlement for a claimant and include, but are not limited to:
- Structured Disposition- may provide up front settlement cash for immediate claimant needs
- Payment annuities - tax free unlike most proceeds from a lump sum
- Structured Agreement - may provide guaranteed income
- Settlement annuities - guaranteed by an insurance company for the specified amount, duration and frequency of the payments
- Compensation annuities - may also provide beneficiary protection in the event of premature death of the claimant
Structured Settlement Company When a Deliberate Agreement is Appropriate
Depending on individual circumstances, a structured settlement may be appropriate for a wrongful death resolution, an injury settlement, a workers comp disposition or any legal determination. Typically, when used as a third party, a structured settlement company may provide objective and experienced suggestions for the structuring of a disposition.
This is provided as general information only and is not to be used in lieu of professional legal or professional financial advice. Consult an attorney and / or professional financial adviser prior to making any decisions concerning structured settlements.
