A structured settlement is an annuity established in the settlement of a personal injury, harassment, malpractice, negligence or liability case. As opposed to collecting a settlement in one lump sum payment, the insurance company will usually pay a plaintiff in regular periodic payments spread over a longer period of time.

As an example, let’s say Jason was hit by a car on his way to work and was awarded $100,000 in a personal injury settlement. However, instead of one lump sum, Jason will be paid $5,000 over twenty years. If Jason is financially stable we would probably recommend that he keep his series of annuity payments. However, if he needs a large sum of money to put a down payment on a car or home it may behoove him to sell part or all of his remaining series of payments.