What is a structured settlement?

A structured settlement is a type of financial arrangement that is used to provide long-term financial security after an accident or personal injury occurs. In Minnesota, structured settlements typically occur after a settlement agreement is reached in a civil lawsuit, or as part of a personal injury claim. In a structured settlement, a third-party insurance company works with the two involved parties to create a payment plan that is tailored to their needs and situation. The payment plan is designed to provide long-term financial stability and security for the injured party. The payments are usually made in regular installments over a period of time, and some may be lump sum payments. The payments are usually tax-free, and are designed to cover medical expenses, lost wages, and rehabilitation costs, in addition to providing ongoing financial security. Structured settlements also offer the chance to protect savings and investments from being diminished by costly medical bills and other expenses. Structured settlements are a good way to go if you have been injured in an accident and need ongoing financial support. They are designed to protect you and your family from having to face excessive financial burdens in the future, and can provide much-needed security after a traumatic event.

Related FAQs

What are the common causes of car accidents?
What is liability insurance?
How much do personal injury lawyers charge?
What is a settlement conference?
How is fault determined in an auto accident?
What is a settlement agreement?
What is medical malpractice?
Can I represent myself in a personal injury case?
What are the differences between a trial and an arbitration?
What is the difference between a settlement and a verdict?

What is a structured settlement?

Related FAQs

Related Blog Posts