What is a Structured Settlement?

How structured settlements work
Simply defined, structured settlements involve the payment of damages—over time—to an injured party. Some settlements can result from voluntary arrangements, as in the case of a pre-trial settlement. Or, they may be court ordered – when the settlement involves a minor, for example. Other structured settlements involve no litigation at all.

Although at least part of the settlement must be promised for payment at some future point, the payments may be scheduled for any length of time – even for the claimant’s lifetime. Payment schedules are designed to meet claimant needs and can include:

• installment payments,
• a lump sum payment made in the future, or
• a combination of installments and a lump sum.

Payments can be made according to a fixed schedule of specific amounts. Or, several different payment streams can be combined to achieve a more flexible settlement structure. The most important aspect of a structured settlement arrangement is that the payments are structured to meet the needs of the claimant.

Funding a structured settlement
The most common and efficient way of funding a structured settlement arrangement is through a fixed annuity purchased from an insurance company. The security of the fixed annuity payment stream is dependent upon the financial strength of the insurance company.

Hartford Life Insurance Company issues the necessary types of fixed annuities that fund structured settlements and has an outstanding record of meeting its obligations to policyholders. High ratings from the major independent rating agencies combined with a quality investment portfolio support the company’s structured settlement obligations.

To learn more about structured settlement programs from Hartford Life Insurance Company, please call us toll-free at 1-800-200-6822.

Internet Address http://institutional.hartfordlife.com