What is a Structured Settlement?
Structured settlements are usually paid when an individual or company is ordered to right a wrong to another person. The party that has experienced the wrong will bring a lawsuit and when the court orders a settlement amount, if it is a large amount, the individual will likely receive payments over a period of time.
The concept of structured settlements occurred about 40 years when courts deemed that pharmaceutical companies sold the drug thalidomide to pregnant women. This medication caused permanent damage to the babies born to these mothers. The courts wanted to make sure the children that were impacted by this drug would receive monies throughout their lifetime to pay for the expenses related to the complications caused by the drug.
The purpose of a structured settlement is to make payments over a period of time. These monetary payments are scheduled and regulated by the agreement negotiated between the party wronged and the insurance company. One benefit of a structured settlement is a guarantee of monies to be paid in the future.
This can be beneficial for the person receiving the settlement to ensure the money will be dispersed over a long period of time. This can be frustrating to a person that needs the lump sum to take care of complications and problems caused by the wrong caused.
Litigation of a civil matter that involves an injury usually takes time. In some cases, it may be years before the wronged party finally gets awarded compensation. Thus, when the ruling is made, the wronged party has been made to wait for an extended period of time for compensation. Often, the injury or the harm caused has impacted the ability of the injured party to make money.
There is usually a disruption in the life of the person, and the person needs to be made whole as much as possible. Companies that buy structured settlements recognize that a lump sum may be more attractive to some individuals that have been awarded a payment schedule over a period of time.
These companies will pay a lump sum before the first payments start rolling in; however, the future payments will be made to the structured settlement company.
Who Receives a Structured Settlement?
Structured settlements are usually granted due to three main lawsuits. Wrongful death, personal injury, and worker’s compensation are instances when the court will grant a large award that might need to be paid in a structured settlement.
Personal injury or bodily injury results when a person is injured physically or mentally when another party is at fault for the injury. As a result of the wrong, the injured party seeks to be made whole or compensated for their injury. This is justified and when the court agrees the person will make a determination based on the facts involved.
Reviews of Structured Settlement Companies
First, it is important to research different companies that offer lump sum payments or buy outs of a structured settlement. Each company will have its own merits and reviews.
One company, JG Wentworth,has a solid reputation for purchasing structured settlements. This company has been doing this for 20 years. JG Wentworth has a best price match guarantee, so you can feel confident that you are receiving a competitive settlement lump sum amount. You can receive a free, quote, so you are not locked in. This is chance for you to see exactly what this company will offer you.
Peachtree Financial Solutions is a top purchaser of structured settlements. Customers generally have very favorable experiences with this top competitor. The professionalism, price match guarantee, and prompt payment are all great aspects of this company. Customer service is superior and in most cases a lump sum payment can be paid in five days or less.