A Structured settlement is a financial arrangement that provides payments to an individual over several years or for the rest of their life. Structured settlements often arise from personal injury, wrongful death, or Workers Compensation lawsuits. The payments from structured settlements come from an annuity funded by the defendant or their insurer. This annuity will produce the income stream over the life of the annuity.
In some instances, a plaintiff may have the option to take a lump sum payment or a Structured settlement. Before deciding which option is right for you, be sure to discuss all your choices with your attorney. Below are some pros and cons to consider regarding structured settlements.