What are Structured Settlements?
Any time that a lawsuit is filed by one party against another, the goal is to gain financial compensation for some wrong. Usually this is a personal injury, medical malpractice, or workers’ compensation suit, but there are other, unusual circumstances as well. Regardless of the reason, if the case is won or if the defendant decides to concede without it going to court, an action known as a settlement, the money can be granted either as a lump sum for the requested amount or given out over a certain period of time. This latter option is known as a structured settlement and may be the best course of action depending on the circumstances surrounding the case.
If a structured settlement is chosen instead of a lump sum, the amount of money is dispensed over a long period of time. This can be a desirable option for a number of reasons, one of which being that the total amount is usually higher. Individuals and companies being sued almost always prefer to pay things in smaller increments, so they may be willing to pay a higher settlement if they don’t have to pay it all at once.
Moreover, structured settlements are usually placed in annuities or other financial constructs set up by the defending party’s insurance company. This means that they are protected by financial institutions and may even gain interest over time. Due to the fact that annuities are paid out over long periods of time, they may be even more appealing if the money is for a child or if there is a long-term goal in mind.
No matter how you decide to settle a legal case, it is always a good idea to consult with an attorney before you even begin the lawsuit. We at the Franco Law Firm have helped many with their personal injury and workers’ compensation cases and we would be happy to help you succeed in yours as well. Please call us at (813) 872-0929 to schedule a free consultation today!