by John Darer CLU ChFC MSSC CeFT RSP CLTC
What’s the difference between an Award and a Reward?
Award
Award is a mark of distinction. To award means to confer or bestow as being deserved or merited or needed. For example, to award a scholarship; Corporal Pyle was awarded the Medal of Honor for valor in battle; Stacy’s Mom’s company was awarded a government contract. It can also mean to give by judicial decree or after careful consideration. For example, The jury awarded DeShaun $5,000,000 for future pain and suffering
Reward
A reward is something that is given in return for good or evil done or received or that is offered or given for service or attainment. Examples Spot’s owners offered a $250 reward for the return of their lost puppy. The poster in the police station advertises a $10,000 reward for information leading to the arrest of “Robbie DeBank”.
A reward can also be a stimulus (such as such as a dog treat that is administered to reinforce a desired response. Example “Sit! Good Boy, here’s a treat!” (Accompanied by petting dog with approval)
What is a Settlement?
A settlement is an agreement to resolve a legal case between disputing parties to the dispute. A settlement is a negotiated compromise, with an essential ingredient being the so-called “meeting of the minds”
Is a Settlement an Award or a Reward?
A settlement is neither an award, nor a reward. You are not “awarded a settlement” or “rewarded a settlement”. Think about it.
This cringe worthy statement was published April 19, 2021, by an influencer, to promote a Los Angeles area structured settlement consultant:
“Let’s say that you’ve gotten into an accident and were rewarded a 100,000-dollar settlement for your injuries, if you receive all of that money immediately and let it sit in the bank, all you are gaining is bank”.
Questions for ” Silly Billy”
- Would a worker who had a traumatic amputation of an arm in a machine consider such a settlement a “reward” for a job well done?
- Would the employer literally or figuratively pat them on the back and say “way to go bro, here’s one hundred large, sign here”?