Settlement Types
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Welcome to Settlements 101
A structured settlement is a financial or insurance arrangement defined by the IRS as "periodic payments". A consumer accepts to resolve a personal injury case. Structured settlements may include income tax requirements as well as benefits and are considered to be an "asset-backed security". Often the periodic payment will be created through the purchase of an annuity, which guarantees future payments.
Understand Structured Settlements?
Structured settlements are critical to your financial well-being and are used in a variety of circumstances. Instead of a single lump-sum payment settlement, you receive multiple payments for a period of time - often for life.
Personal injury settlements. Structured insurance settlements are common in cases involving personal injury, such as in auto accidents and work accidents.
Life settlements. Also called senior settlements, these allow you to liquidate an insurance policy for an amount higher than the cash value.
Viatical settlements. Also called death settlements, these allow you to sell a life insurance policy to help pay medical costs for a terminally-ill person.