My father received a "structured settlement" after his car accident in South Dakota. What does this mean?


A "structured settlement" is a financial arrangement for paying the settlement amount in a personal injury lawsuit. This is commonly used for more serious accidents. Instead of receiving a one-time payment for the accident, the injured person will get periodic monthly or yearly payments.


The person, business or insurance company paying the money may prefer a structured settlement. A periodic payment plan does not require getting together a huge amount of money at once. Instead, the business can set aside smaller periodic payments, or purchase an annuity.