YOU ASK:
What is the definition of Structured Settlement?
WE ANSWER:
A Structured Settlement is a plan that outlines how an insured person, beneficiary or claimant is to be paid when these opt not to get a single lump sum payment. It is a legal agreement that defines how much is to be given in periodic benefit payments. This is usually programmed to be received throughout the lifetime of the insured person, the beneficiary or claimant. Thus, the structured settlement really becomes a lifetime annuity, which is designed to fit the needs of the one set to receive the payments.
A structured settlement is useful in serving as a steady income stream, especially if the person is past the retirement age. A third-party is assigned to administer the structured settlement.
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