Disadvantages Of Structured Settlements
Structured settlements are generally used to compensate individuals who have been awarded a huge sum of money. They are most commonly used when an individual himself has been seriously injured or disabled due to the negligence of another individual or organization. They are also very frequently used to pay out jackpot lottery winnings. Instead of paying a huge lump sum amount of cash, structured settlements are generally paid out over a spanned period of time. Payments are also issued monthly, quarterly, semi-annually or annually. These payments are strongly backed by an annuity distributed through various life insurance companies. Structured settlement payments are tax-exempt and hence tax free.




