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Old 07-21-2009, 01:28 AM
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What is a Structured Settlement?

Generally, whenever a plaintiff settles a case for a vast sum of money, the defendant, the plaintiff's attorney, or a financial expert that is consulted in association with this settlement, will propose paying the settlement in equal installments over a period of time instead of receiving a single lump sum.

Whenever a settlement is paid in this manner it is called a "structured settlement". The structured settlement is usually created through the purchase of one or more annuities, that guarantee the future payments.

A structured settlement can be fairly flexible and can provide for any scheduled payments that the parties choose. Thus, for example, the settlement may be paid in annual installments over a number of years, or it may be paid in periodic lump sums every few years.

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