If you have lost a case of a personal injury to the injured party, you may be in for some trouble. Paying the settlement can harm you financially. Structured Settlements, though, allow you to make payments periodically instead of paying it in one lump sum. This financial tool is usually funded by an annuity policy. Structured Settlements are used often to supply the injured party with a stable income and to lighten the defendant’s financial load.

A Structured Settlement is not a liquid asset and can’t be used for collateral or for a loan. The payments can be made over a long period of time, sometimes even decades. This is very helpful for the defendant, but, many times less helpful for the injured party. Instead of receiving one lump sum and being able to pay off medical bills, a loan or buy a home, they have to wait over a long period of time to receive what they deserve. This can be extremely aggravating and frustrating, especially after having already gone through a traumatic experience. As much as Structured Settlements are meant to aid the defendant and the injured party as well, there are times where the injured party could benefit more if given a lump sum.