Insurance: Structured Settlements
Structured Settlements are a unique and specific product used in the settlement of claims and lawsuits where there is either a large amount of money and/or a need for the management of funds. The basis of a structured settlement is contained in Section 104 (a)(2) of the IRC. They are simply a means for qualified settlements, usually in personal injury cases, whereby the recipient of a settlement receives their funds in a more flexible and tax advantaged way, rather than in a single lump sum settlement.
Structured Claim Settlements -- Still A Viable Tool?
Structured claim settlements have often been a preferred method of resolving serious bodily injury and workers' compensation claims. However, recent poor performance of the stock market and low interest rates have made some risk managers and financial officers question the current viability of such settlements
