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Structured Settlement

Structured Settlement: Help Network

Structured Settlement:  Help Network

There was a time when structured settlements did not exist.  During that period, prior to the enactment of certain favorable tax legislation, only option litigants had to resolve lawsuits was to negotiate settlements for a lump sum. Of course, in theory, any plaintiff and any defendant could agree to a resolution of a lawsuit that called for payments over time, i.e, periodic payments, but then you have to worry whether or not the defendant will be financially viable enough to make the structured payments in the future.

By and large, a structured settlement resolves the issue. Instead of relying on a defendant to make the structured timed payments over the course of years, the defendant or the insurance company for the liable defendant purchases a structured settlement from another company- often times a life insurance company. When this happens the Plaintiff no longer needs to look to the defendant, the party that caused the injury or accident, to pay the claimed agreed amount over time but instead can rely on the credit quality of a viability of the insurance company. Who would not prefer an obligation to make structured settlement payments from Metlife, New York Life, John Hancock or other annuity issuers over the simple agreement of an individual to make the payments over the time.

This is especially true nowadays when a structured settlement can last a very long time. For example, frequently a structured settlement can provide for monthly payments under a structured arrangement that continues on for 20 years, 30 years or more. A Structured settlement also can provide for life contingent structured payments that can go on for as long as a person is alive.  Obviously, this type of obligation is better suited for a life insurance company than an individual. With life contingent payments as part of a structured settlement, there are a lot of things to know.

When it comes down to it a structured settlement can be a very prudent and thoughtful way to resolve a lawsuit. Many times it is a good way for a plaintiff and defendant to come to an agreement to make a lawsuit go away.  It is often the situation, however, that a structured settlement must be sold if current economic demands and needs must be met and there are no other preferred ways to raise capital. When this is the case, the best call you can make is to Catalina Structured Funding. We are leading experts in the structured settlement buying world and can work with you to get a lump sum for part or all of your structured settlement.