What Is A Structured Settlement By Amit Laufer At Isnare.com Ezine Articles

A Structured Settlement is an agreement between a personal injury victim ( a Plaintiff ) and an Insurance company ( the Defendant )to compensate the Plaintiff by the defendant with long term periodic payments instead of a single cash lump sum.

Payments can be tailored to each individual plaintiffs needs, to help meet expenses such as on-going medical and living expenses, education, children needs & support etc’ The fixed annuity payments are tax-free to the claimant, a cost-of-living adjustment (COLA) feature is available, that can help offset the effects of inflation over time, payments can continue as long as the claimant lives thus providing him the maximum benefits.

Structured settlements are encouraged by plaintiffs lawyers, Courts, Insurance companies and the legislators alike as they all agree it is the best solution to all parties involved especially for the claimant.

The annuity can be transformed in part or in full to a cash lump sum via private funds and should be approved by the Court. The funds are most interested to make these deals as they are very profitable to them because they take the long term tax free payments and in exchange pay the annuity holder less than the face value but in cash.

These same funds are handling Lottery winners long term payments into one single lump sum as well as all kinds services of cash against future payments.

In this time of confusion and turmoil in your life you need all the help you can get. The sad and naked truth is that the people and Institutions dealing with your claim, all want to cut a hefty coupons on your expense. They know you are in a vulnerable situation and due to the large sums of money involved you will not notice how they skim hundreds of thousands of dollars just under your nose.

Always think about the interests of the parties involved. Let’s take a purely hypothetical case, If the Defendant can save a large sum of money on your expense, say $150,000 out of 2.5 million dollars settlement, the watch dog you hired which suppose to take care of your interests thinking about his narrow interest.

The final result is you will get $150,000 less than you could have gotten, your watch dog will get additional $ 75,000 from the defendant, all this without you will ever know what was going on behind your back.

Some words of caution though, not every lawyer is a crook, on the contrary, most of them are hard workers honest and loyal professionals who will be afraid to lose their license. Exactly as not all Insurance companies are corrupt and greedy, but it's better for you to take precautionary measures. After all It’s your life, It’s your money and your future so watch out and be on guard.

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