How Structured Settlements Work
Structured settlement payments are paid to the claimant through a structured settlement annuity, a contractual obligation from a life insurance company. The insurance carrier agrees to pay the claimant predetermined amounts for a fixed period of time in return for a certain premium. Payment amounts can be issued to the claimant as single lump sums, fixed monthly payments for a certain period or for life, annual lump sums, or any combination of the above.
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