Structured Settlement Payments
When a structured settlement agreement is reached on the benefits to be included, the defendant will agree to fund a stream of cash to the victim. The structured settlement payment obligation is then legally assigned to an independent third party that has experience in this area.
An example of such a third party would be a life insurance company. In this way, the victim is protected from further legal complications or financial hardship of the defendant.
The structured settlement is generally set up as some sort of an annuity that makes payments according to the prescribed and agreed upon schedule.
In most cases, the structured settlement payment is made on a monthly basis, though this is an item of negotiation. Other times, the structured settlement payment may include periodic increases or additional payments when there will be additional costs that have been identified in advance. An example of such might be buying a car or a wheelchair.
More on Structured Settlements