Typically, compensation for personal injury claims is paid out either as a single lump sum or as a series of periodic payments in the form of a structured settlement. Structured payment annuities are tailored to meet one’s needs, but once agreed upon, the terms can’t be changed.
Sometimes, personal injury lawsuits don’t make it to trial. Instead, the plaintiff and the defendant negotiate the settlement as a lump sum or a structured settlement, where the injured party receives monthly payments for a specified period of time. However, before you agree to a structured settlement, you must discuss your payout options and the full terms of the contract with an experienced personal injury attorney or a financial advisor.