Many people entering negotiations with an insurance company have a lot of common structured settlement questions and may search for structured settlement FAQ pages online. Reviewing the basic structured settlement FAQs can help you understand the settlement process without having to consult a lawyer. You may be wondering how many payments you will receive from the settlement, how much your settlement will be, and what rights you have once the structured settlement is finalized. Whatever the case may be, take some time to look at the structured settlement FAQ list below to learn more about this often-confusing process.

Here are the answers to some common structured settlement questions:

Q: How do structured settlement annuities work?

A: Structured settlement annuities are contracts issued by an insurance company to provide funds for the payment of damages after a lawsuit. These payments are usually paid out in a series of installments that can be issued for five, ten, fifteen, or twenty years or more. In some cases, the structured settlement will be paid out over the course of an entire lifetime.

Q: Is a structured settlement annuity guaranteed?

A: Yes, the structured settlement agreement is a legal contract.

Q: Are structured settlements subject to tax advantages?

A: In most cases, you will end up saving between 25% to 35% or more on state and Federal taxes as interest income when you agree to a structured settlement, instead of a lump sum payment. The exact amount you end up saving depends on the tax bracket you fall under.

Q: What types of structured settlement quotes can you get?

A: If you are working with a buyer for a structured settlement, they will usually be able to provide you with a structured settlement quote for payments that are owed to you by an insurance company; as a result of a lawsuit or an insurance settlement; and on guaranteed or life contingent payments. Getting a quote for a structured settlement is usually free.

Q: Can I sell my structured settlement payments?

A: Some states do allow for the sale of structured settlement payments to a third party. When you have found a legitimate buyer, you will need to have a judge approve the sale and then sign an agreement that forfeits your right to receive settlement payments. You will be given a lump sum payment for the sale, which is usually wire-transferred to your bank account within days of approval.

Q: How long does it take to get structured settlement quotes?

A: Most companies and individuals interested in buying structured settlements will issue a quote within 24 hours of your request. You can then compare quotes from several potential buyers to get the best price on your purchase. If you are working with a settlement broker, he or she will seek out the best quote or price on your behalf and take a commission from the sale.

Q: How much time do you have to accept an offer for the structured settlement bidding process?

A: You will typically have between 24 and 48 hours to accept an offer to sell your structured settlement during the bidding process. Check with the buyer to find out what their terms are for the sale. Most buyers also have a "cooling off" period in their terms whereby you can cancel the transaction if you change your mind.