When someone is injured at work or n a car accident or some other event, they are usually compensated through a structured settlement annuity. But what is this annuity? And when would you need one set up for you?

Every day it happens. What starts out as a seemingly normal day for thousands of people turns into a nightmare when an unexpected mishap occurs that can change someone's life forever. It might be an accident at work, a car accident or a negligent medical error. These events are life changing for many people.

What if it happens to you? What if, because of the negligence of someone else you could no longer earn a living? Compensation would be something that you rightly wanted and deserved. What form should this compensation take? 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 it might be decided that you should receive your compensation in the form of a structured settlement annuity.

A structured settlement is an agreement between a plaintiff and a defendant under which the injured person (plaintiff) receives damages in the form of a stream of periodic payments purchased for the plaintiff on behalf of the defendant.
Since these plans have been in operation, plaintiffs have agreed that the structured plan meets their financial security needs.

Why not a lump sum?
If someone if given a lump sum, chances are they will spend it all too quickly whilst periodic payments are easier to keep.

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 is important to remember that the financial security of the company issuing your payments will determine the safety of your payments as a whole. So when you are choosing the financial company from whom your payments will be issued, do your research and be careful. Again, your compensation lawyer can help advise you on which company to go with when registering for a structured settlement.

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