Structured settlements are structured cash payments through an annuity system that is established to compensate injury victims for their losses. Structured settlements are the other alternative payment system to a lump sum cash settlement and are set up to provide payments to you over time.

Structured settlements received special legislative treatment by the U.S. Congress in 1982, as a way to make large settlements more agreeable to parties and provide certain protection to victims. As a result, many people now choose a structured settlement agreement over a lump sum distribution, and courts often award them in civil actions where there will be long-term costs of living and the necessity for obtaining cash payments at some point in the future.

Under a structured settlement, the victim will receive compensation over an extended period of time (often a lifetime) instead of a large single payment. The structured settlement is a way of protecting the victim from economic loss and hardship, while also making the payout more palatable to the defendant.

Structured settlements are obviously not appropriate in every case. A simple accident where the injured party is and will be fully capable, cases where the term of the treatment or care is not spread out over a long period of time, and where the kind of injuries are not severe would probably not have a structured settlement agreement.

Structured settlements are designed for many other types of cases though including:

?Severe injury where there is long-term treatment requirements, where future medical costs will necessarily be incurred, and to meet living and family expenses.

?Worker's compensation cases where the injured party may not be able to work or at least work to the earning capacity that they would otherwise have enjoyed.

?Permanent or temporary disabilities that will take extensive recovery time

?Wrongful death cases where a surviving family will need a regular income to replace that of the lost spouse/parent

?Guardianship cases where there are minor children or another person who is judged to be incompetent such as a person with psychological, emotional, or mental handicaps

If your Structured Settlement facts are out-of-date, how will that affect your actions and decisions? Make certain you don't let important Structured Settlement information slip by you. That's how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.