Structured Settlement
HELLO friends
today I will tell you about structured settlement. Structured
Settlements have been a favorite resolution in personal injury and wrongful
death cases for the last three decades. To meet the needs of the individual and
to the amount awarded to that individual, they can be a great plan for a
lifetime of financial security in the wake of a tragedy. But sometimes
those needs change. When that happens, structured settlement owners have
options on accessing their money more quickly. Now I will tell you the process
of structured settlement.
Structured Settlement Process:
The process of
issuing a structured settlement is a complicated one that results in a simpler,
easier solution for someone who wins a case. If in a court proceeding a
plaintiff is determined to be owed money, a structured settlement can be considered
instead of a lump sum. Both sides work with a trained consultant to
determine the amount of money and the needs to the plaintiff. The consultant
then uses the money to purchase an annuity from a life insurance company.
The annuity is
managed by a life insurance company separate from the at fault party. The money
is thus protected from market fluctuations, recessions and all the other risks
typically associated with investments. The plaintiff, in other words the person
harmed, simply receives a scheduled series of payments for a set amount of
time.
It’s a solution
that many people take advantage of: Nearly $6 billion in new structured
settlements are issued each year, according to the National Structured
Settlements Trade Association.
How Structured Settlement Issuing Companies Work
Structured
Settlements are used by courts in many different types of cases to replace or
supplement income that was lost through the fault of someone else. Since
they’re conducted through a third party, it also means someone doesn’t
consistently need to associate with the person or entity that wronged them.
Structured Settlement Issuers:
- Prudential
- New York Life
- Liberty Mutual
- AIG
- Chronovo
- Berkshire Hathaway
