Structured Settlement – How It Works And What You Should Know

Most articles on structured settlements are so jam-packed with technical “mumbo jumbo” that you either can’t understand the point or fall asleep halfway through the first paragraph!

So let’s start with a no-nonsense description of what structured settlements are:

A structured settlement is nothing more than periodic payments for a personal injury or workers comp. claim.

Example: John has an accident at work and sustains an injury through no fault of his own. He receives a settlement of $100,000.00 payable in $10,000.00 installments every year.

And that’s the basic idea...

The $10k/year is where the “structured” part comes in.

Instead of receiving a lump sum all at once, the payments are made on a periodic - in John’s case, yearly - basis.

Structured settlements came about in the 70’s as an alternative to lump sum settlements. As far as definitions go, you don’t need to dig too much deeper.

Structured Settlement Search