informationlover

  

Structured Settlement Company

Navigation: Main page

Author: Donald

A structured settlement is a court-ordered settlement for an injury claim. The awarded amount is not paid out in a lump sum when the settlement is reached.

Rather, usually a small portion of the settlement is paid when the settlement is reached and the balance of the awarded amount is paid out over a period of months, years, or even the life time of the injured party.

After an award has been made to a complainant by the court, or an agreement has been reached between the parties, sometimes the defendant will employ the services of a structured settlement company. This is done for several reasons, but the most usual one is that the defendant does not want to have to keep the judgment amount on his company's books for months or years as the structured settlement payments are made.

Structured settlement companies manage the payouts for the defendant. Structured settlement companies can save defendants money in litigation costs but structured settlement companies can also benefit the injured party.

Structured settlement companies employ consultants who have particular expertise in specific fields like medical malpractice, law, finance, casualty claims, commercial liability, and worker's compensation.

The structured settlement company consultant works with both the defendant and the injured party to negotiate a financial arrangement that is satisfactory and ultimately fair to both parties.

After a total settlement amount has been negotiated, the structured settlement company consultant then arranges for the injured party to receive regular monthly, semimonthly, semiannual, or annual payments. Payments are funded through an annuity purchased from a life insurance company. The defendant must purchase this annuity. The injured party pays nothing.

If the injured party wishes to convert his annuity payments to ready cash, the structured settlement company can help him to do so. The structured settlement company can put the claimant in contact with those who specialize in purchasing structured settlement annuity payments.









Disclaimer Privacy-Policy Terms-Of-Use