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Structured Settlement or a One-Time Lump Sum Payment? By: Greg Smith If you are involved with a legal decision, financial claim or insurance arrangement, the financing process to settle and resolve the claim can often take two forms. Either a one-time lump sum payment, or a long-term periodic series of deferred structured settlement payments. But which is best for your situation? Learn more at http://www.settlements-i.com/ A structured settlement involves a financial or insurance arrangement which includes a periodic stream of payments, that a claimant or plaintiff accepts in order to resolve a personal injury claim or other legal case. They were first utilized in Canada and the United States during the 1970s as an alternative to lump sum payments and are now part of the statutory tort law of several common law countries. A structured settlement is a deferred payment method for compensating injury victims, and is a voluntary agreement between the injury victim ( plaintiff ) and the defendant. The plaintiff will receive the monetary payout over the course of a number of years through this deferred payment agreement. Under a structured settlement, an injury victim does not receive compensation for their injuries in one lump sum, but rather, they will receive a stream of tax free payments designed to meet future expenses and living needs. This type of compensation method is becoming more popular in a wide variety of legal cases. The benefits of a structured settlement over a lump-sum payment include the security of a guaranteed long-term income with deferred payments that are exempt from income taxes. The federal government encourages the use of structured settlements in personal injury cases.  Structured settlements also attract support from plaintiff attorneys, state attorneys general, legislators, consumer and disability advocates. Structured settlements can be ideally suited for cases with: • Persons with temporary or permanent disabilities • Guardianship cases that may involve minors • Workers compensation cases • Wrongful death cases • Severe injury Want to Sell Your Structured Settlement? Not everyone benefits from a long-term payment situation and some may want or need a lump sum instead. The owner of a structured settlement, such as lottery winners, medical, insurance, accident and lawsuit settlement owners, can often sell their rights to the deferred payment stream, in exchange for a one time lump sum payment from a variety of financial institutions. All situations are different, and as with any legal issue, you should always consult your attorney. About the Author Greg Smith is the publisher of the informational web site on Structured Settlements at http://www.settlements-i.com/. Visit his web site for the latest on settlements of all types. Keywords: structured settlement, injury victim, attorneys, injury, resolve a personal, personal injury cases, personal injury attorney, personal injury, personal, personal injury claim

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