Structured Settlement Company - What It Is and Why You Need One

A structured settlement company is an organization whose main focus is to assist individuals entitled to annuity payments. Although there are many types of structured settlements, one of the most common is those offered to individuals who have been seriously injured.

Most structured settlement companies employ consultants who specialize in a specific field. Typically, staff members consist of individuals well-versed in medical malpractice, law, finance, casualty claims, commercial liability and Worker's Compensation.

Structured settlement specialists work with both claimants and defendants to negotiate a compensation plan for the injured party. Instead of paying a lump sum cash payment, structured settlements provide consistent income over a specific period of time. Payments might be paid monthly, quarterly, bi-annually or annually. They can be paid out over a few years or a lifetime.

When a person is injured on the job, involved in an automobile accident, or as the result of negligence, he might be entitled to a structured settlement. Typically, an individual must incur losses of $10,000 to qualify for this type of financial agreement. If the case involves minor children, losses of $5000 or more may qualify for a settlement.

Generally, structured settlement payments pay fixed amounts during a specified time period. However, each settlement is unique and can be arranged in whatever manner best suits the needs of the claimant. Payments are funded by an annuity purchased from a life insurance company. It is the responsibility of the defendant to purchase the annuity.

A structured settlement company can assist the claimant in obtaining the funds he needs, when he needs them. Oftentimes, a team of consultants will work together on the case to ensure the injured party is compensated for both current and future expenses. Additionally, the company will manage the account portfolio and make financial investments on behalf of the claimant.

For example, if a claimant must undergo certain medical procedures for a period of six months, the structured settlement will be arranged to provide additional funds to cover associated costs. Once the procedure is complete the claimant will no longer receive the additional funds and will revert to a lowered annuity payment.

Working with a structured settlement company can ensure the claimant receives all the benefits they are entitled to. Well-established companies have access to multiple life insurance companies which allows them to obtain the best annuity for the injured party.

Structured settlement consultants can carefully craft a settlement to address both current and future financial needs of the claimant. They will work with the claimant to structure payment dates to coincide with the individual's financial needs.

When it comes to structured settlements there are as many ways to construct one as there are people who need them. Therefore, it's strongly advised to retain the services of a structured settlement company. These experts can guide individuals through the maze of options and ensure claimants obtain the best settlement possible.