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Structured Settlements Payments Information
Why Are Structured Settlements Awarded?
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 term
or schedule.
In most cases, the structured settlement payment is made on a "monthly basis",
though this is a negotiable item. 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 any other type of need that may arise.
For more free legal information on Structured Settlements, please use the
links below:
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