This is a typical example of how person can come to receive a structured settlement.
At the age of 32, Robert was involved in a motorbike accident and was badly injured.
Robert engaged a lawyer to make a claim for compensation for personal injury against the motorist. The motorist was insured and the insurance company defended the claim on its client’s behalf.
The parties reached the following structured settlement agreement:
* The insurer will pay Robert an immediate cash sum of $565,000. Robert can use this amount to pay his lawyers, pay off his debts and purchase some equipment.
* The insurer will also purchase for Robert a personal injury annuity that will provide him with periodic payments, starting at $2,000 per month and continuing for as long as he lives. The payments are indexed to increase in line with the CPI and are guaranteed for 10 years from the date of settlement. The monthly payments will be used to cover his medical expenses and other living costs.
