Structured Settlement Annuities are commonly set up to compensate someone injured on the job or in a car accident. But what is this annuity? And when would you have one set up for you?

Every day it happens. A normal day can quickly turn into a nightmare for thousands of people when a preventable mishap occurs. It might be an accident at work, a car accident or a negligent medical error. These kind of occurrences can change people’s lives forever.

What if it happens to you? What if you could no longer work and it was someone else’s fault? Naturally, you'd want to be compensated for this hardship. But how would you want o receive the compensation. Would it be a lump sum or periodic pay-outs over a set time.

The first thing you should do is hire a compensation lawyer or injury claim specialist who can help you get through the court case. Once you win your case a structured settlement annuity may be found to be the best way for you to get your compensation.

A structured Settlement is when the plaintiff in a case receives their compensation in a number of periodic payments which are bought for the plaintiff by the defendant.
This type of payment plan has been shown as effectively meeting the plaintiff’s financial security needs.

Why not a lump sum?
There are a number of reasons but the first two are that it prevents an undisciplined spender from going through a lump sum payment too quickly.

The other is that if you use a structured settlement annuity that provides periodic payments, the claimant is entitled to significant tax relief that receiving a lump sum payout does not. Your compensation lawyer will be able to explain more about structured settlements.

It should be pointed out that your payments are only as secure as the company issuing the structured settlement. So when you are choosing the financial company from whom your payments will be issued, do your research and be careful. Your compensation lawyer can help you with this aspect of your structured settlement too.

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