A structured settlement is a settlement tool, established by a negotiated agreement between plaintiffs and defendants and/or their insurers, that provides customized payments for a specified period of time, lump sums tied to specific times or events, or stable income for life. Payments from structured settlements are backed by annuities issued by some of America's largest and oldest life insurance companies, or in some cases, they are backed by obligations of the United States government, or reinsurance companies. Tax benefits are an added advantage of structured settlements used in the settlement of personal injury, medical malpractice, wrongful death and workers compensation cases.
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