Despite all legal language, structured settlement are simple. Many lawsuits ensure that someone or a company pays money for another person to correct an error. Claimants can accept the settlement themselves or they can be forced to pay the money if they lose the case in court.
In this case, the debtor deposits the money into an annuity, a financial product that guarantees regular payments from an insurance company.
The structured settlement settlement states the number of payments received by the injured party as compensation for the damage suffered. Structuring money for a longer period offers a better future for financial security, because only one payment can be spent quickly.
Structured settlements became popular in the 1980 after the United States Congress adopted the regular payment law. According to the National Union of Structured Arrangements, about $ 6 billion of new structured settlements are spent annually.
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