The structured settlement annuity is offered by the insurance company who insured the party responsible for the injury as a way to compensate the personal injury claim victim without paying a lump sum of cash up-front.
Sometimes a structured settlement annuity is better for the victim at the time of their accident, but often the victim’s circumstances change and they may need a lump sum today.
The recipient of a structured settlement annuity will receive these periodic payments tax free from the insurance company.
Structured settlements benefit the personal injury victim by insuring they receive a steady stream of future income, which is particularly important for minors or victims who have had life altering injuries and may be unable to earn income over their lifetime.
