This is a term commonly used in insurance settlements. Insurance settlements are usually one time settlement with respect to the affected party or the plaintiff. structured settlement annuities (also known as "Structured settlement") may be called as an extension of benefits over a longer period of time. In other words, the victim gets a fixed amount periodically instead of getting money in one lump sum. Such periodic income would normally lasts until he fully recovers and be able to take their normal work.
Legal Aspects:
said that the concept of a structured settlement was first practiced in Canada in 1970. Later, several other countries resorted to this procedure. Given the advantages of this form of payment of compensation of victims of accidents, several countries passed laws to legalize. This type of structured settlements are also referred to as "periodic payments verdict. annuity is decided depending on the nature of the injury, the time usually taken to fully recover, the type of real estate victims, victim status, etc.
Structured settlement annuities vs. one time settlement:
In a settlement, the victim has to meet his budget to the benefit received. It is especially difficult when the victim is immobilized for a longer duration of time. victim will have to manage the medical expenses, home, etc. within the compensation received, and there is a likelihood of depleting resources. Instead, under a structured settlement annuities, the victim gets compensation for a longer duration. He has convinced some periodic income until he recovers. With this amount, the victim can maintain his family, pay school fees for children, the cost of food, medical expenses, etc. As a result, the victim does not affect everyday life. Now this type of settlement is becoming more and more popular.
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