So what is exactly is a cash structured settlement? To put it in lamens terms a cash structured settlement occurs when there is an insurance company that gives you scheduled payments as a result of a claim. In other words, a structured settlement is a monetary package of payments that allows the company to pay off a settlement through scheduled installment payments over a given period of time.

Structured settlements first started in the early seventies in Canada, then they spread rapidly into the United States. Several years later, the structured settlement method found its way to Australia as well as Europe.

A benefit of structured settlements is that it provides a tax free recurring payment over a given period of time. These payments can be spread out through the live of the recipient. If the recipient ends up dieing, a guaranteed portion of the settlement be paid to a beneficiary.

An alternative to a structured settlements package is a lump sum payment. This means that a one time amount can be made to the recipient instead of breaking the amount down into multiple payments over a given period of time. This often happens when a person wins the lottery. One reason that a lump sum payment is of interest to individuals is that they may have a large expense that they wish to pay off. For example the recipient may have, a home loan or mortgage, medical expenses, credit card debt, etc. When the recipient recieves a lump sum payment, many debt issues can be resolved as a result of the large payment.