Why Would I Receive a Structured Settlement?
The most common scenario where you might receive a structured settlement is if you have settled a legal claim. Typically, claims that result in structured settlement payments include personal injury, medical malpractice, or wrongful death lawsuits.
If it is determined that you are owed compensation in any of these types of lawsuits, there may be an option to receive your funds immediately in a lump sum or parceled out into periodic settlement payments.
Why Would I Inherit a Structured Settlement?
If a loved one is receiving structured settlement payments through what is referred to as a guaranteed payment settlement, they are owed a certain amount of money even if they pass away before the payments are finished. In the unfortunate circumstance that a close family member passes before their settlement payments have concluded, you may be in a position to inherit the structured settlement.
If you are listed as a beneficiary when the original recipient dies, you may be entitled to receive payments from the structured settlement. If there are multiple beneficiaries listed, the payments will be split up as designated by the deceased. Your inherited structured settlement payments will still come from the same insurance company, and the frequency and amount of each payment will remain the same as it was when they were living.