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What is a Structured Settlement?

You may have heard ads about structured settlements recently, and wondered to yourself "What is a structured settlement?" As with many financial products and process, understanding whats a structured settlement can be a bit tricky, but once you get past the vocabulary, the process actually makes a great deal of sense.

How to get a structured Settlement

Many people wondering what are structured settlements are mostly interested in getting one. Once you define structured settlement, however, it becomes clear that this is not something you can go out and just get. A good structured settlement definition is an agreement between two parties whereby one pays the other a certain amount of money at a set rate or interval over a defined period of time. Structured settlement examples include court cases and pre-trial agreements in civil issues. This structured settlement definition demonstrates that it's not a matter of going out and obtaining a structured settlement, like one might with another financial product, but rather structural settlements are best understood as the payment schedule for a large sum of money, usually as the result of a court case or settlement. Structured settlements are usually designed to payout money when it will be most needed in order to address the injury that the plaintiff took legal action against. As a result the payout and schedule of each structured settlement will be different. This is another element that can make structured settlements difficult to understand, as no two structured settlements are exactly alike. That's why it's incredibly important to talk to a certified financial advisor when considering any structured settlements.

I Have a Structured Settlement

Those people who are involved in court cases may have a structured settlement, and will undoubtedly want information on what is structured settlement. Check out some of our other structured settlement FAQ's for even more advice. For now you should know that there are a number of different things that you can do with your structured settlement. It is possible to take the money according to the schedule in the settlement, you can invest the money from your settlement, or you can sell your settlement. All of these options come with different benefits and risks, so make sure you talk to a certified financial advisor before taking any action on your structured settlement, as there are a number of different financial products on offer and you want to make sure you're acting on the best structured settlement information you can find.

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