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It happens every day. What starts out as a seemingly normal day for thousands of people turns into a nightmare when an unexpected mishap occurs that can change someone's life forever. A car accident, a simple medical procedure gone wrong, an altercation with someone. These events alter the courses of peoples lives every day.

What if it happens to you? What if suddenly due to someone else's negligence you were unable to continue to work?

Naturally, you'd want to be compensated for this hardship. What form should this compensation take? A lump sum payout or structured payments over a set period of time?

First and foremost you need to hire professional representation. to help you get through the court proceedings. Once you are through, it may be determined that the damages owed to you should be paid out using a "Structured Settlement Annuity."

But what is a structured settlement annuity?

Simply, A structured settlement is an agreement between a plaintiff and a defendant under which the injured person (plaintiff) receives damages in the form of a stream of periodic payments purchased for the plaintiff on behalf of the defendant.

Over the years these have been shown to effectively meet a plaintiff or claimant's need for security.

Why should you use one?

There are a number of reasons but the first two are that it prevents an undisciplined spender from going through a lump sum payment too quickly.

The other is that if you use a structured settlement annuity that provides periodic payments, the claimant is entitled to significant tax relief that receiving a lump sum payout does not.

A structured settlement provides security over time that a lump sum payout simply cannot.

It is important to note, that the security of the payments is only as strong as the financial strength of the company that issues the annuity. Therefore, care, research and seeking out trustworthy advice is paramount when choosing a financial institution to issue the annuity.

About the Author: Michael DeGeorge has done extensive research on structured settlements and shares a wealth of information on his website http://structsettle.gitgoingnow.com. Download Structured Settlement Annuity information today.