Most of the settlements are done with the help of annuity. The payment amount is decided mutually or by the judge. Within which duration the payment is meant to be done can be decided by you. It depends on factors like financial stability, crime, and compensation amount. Many different types of annuities can be taken except for structured settlements. Some companies help you buy new annuities, sell them to someone, and purchase them from someone who is selling it. Here are they-
1. Temporary life annuity
A temporary life annuity provides you the income till you are alive.
2. Lump sum
Many annuities will pay a lump sum at a date. If you die before the date, your amount can receive the sum on a designated date.
3. Life Contingent
In this situation, the lump sum amount won’t be returned if you die before
On the date you mentioned, you want to receive the money
4. Joint and survivor annuity
Joint and survivor annuities will pay you the designated amount till you are alive. After your demise, it will be given to either your spouse or your children.
Some Examples of Structured Settlement
- Medical malpractice- Not all but cases are seen where the doctor or any other medical staff indulge in wrong practices with patients. It can be with them, their organs, or the medications. Suppose, there is an operation going on and the patient dies, the doctor takes out few organs without permission. The body is wrapped and given. During this time of the pandemic, chances of this happening have increased, as the body cannot be touched or opened to confirm. If the patient or the family members of the patient get to know this, the responsible medical staff will have to give an amount as compensation for the crime.
- Wrongful Death- Wrong death settlements refer to the cases where family members of the person who died get compensation. This can be taken as future income that was meant to come from the person who died. For example, If there is murder then the criminal has to pay the family the compensation in the form of an annuity. The judge is supposed to ensure the amount to be given. It can be given tax-free approval by the government. It depends from case to case.
injury settlements- the personal injury settlement is done for claiming the
person whose actions have physically hurt, or some injury while the work has
taken place. Some injuries are serious and can leave you in a position where
you cannot do anything further. This type of settlement will help you get an
income that you could have earned for your family. It can also be granted after
you are hurt in some activity asked to be done by the company. Here the firm
you work under gives you this compensation. These are given in cases where the
person is still alive. If death occurs, then the family can claim wrongful