The 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. ...