structured settlement
Periodic lawsuit payout
A structured settlement is a legal arrangement in which compensation from a lawsuit or insurance claim is paid out over time rather than as a single lump sum.
Typically used in personal injury cases, the plaintiff receives periodic payments—often tax-free—over years or a lifetime: She chose a structured settlement that would cover her medical expenses indefinitely.
Recipients can later sell these future payments to companies for immediate cash, though usually at a significant discount.
- tort lawRules for civil wrongs
- claimantOne asserting entitlement
- cash outConvert assets to money
- lottery winningsPrize from random drawing
- statuteEnacted written rule
defendant · periodic payments · compensation · underwriting · tax optimization · liability · deferred payment · fixed income · reinsurance · claims adjuster · estate planning · financial advisor · reserve fund · life insurance · risk assessment · savings account · personal injury · accident victim
- negotiationbargaining, bargain, negotiate, mediation, compromise
- accident claimsaccident claim, car accident claim, damage claim, injury claim, liability claim
- injury claimspersonal injury, injury claim, insurance claim, bodily harm, bodily injury
- insurance payoutsclaim, death benefit, life insurance payout, lump sum, indemnity
- settlement taxestaxable income, tax liability, taxation rules
- settlementsvillage, cities, hamlet, city, towns
structured settlementlump sum
Entire amount at once
lump-sum payment · one-time payment · single payment · cash settlement · upfront payment
structure, structured, structures, structuring, structural, structurally, restructure, restructured, restructuring