Structured Settlements: A Simple Guide
What is a Structured Settlement?
A structured settlement is a legal agreement to receive your money in a series of future payments instead of a single cash amount.
Plan
Payments (monthly, yearly, or large payments at set times) are designed around your specific needs.
Payments are funded by highly-rated life insurance companies. They are fixed, guaranteed, and do not depend on the stock market or investment performance.
In most injury cases, the payments are tax-free under federal law (and usually state law).
Why Choose
Payments Over a Cash Payout?
Making the Right Decision
You must decide on a structured settlement before your case is finalized and the money is paid out. Once the cash is in your hands, the option to structure it is gone.
Be cautious of factoring companies that offer to buy your future payments for “fast cash.” They purchase your payments at a steep discount, meaning you receive far less than your guaranteed income is worth. Always speak with your attorney before agreeing to this.
A consultant can walk you through options based on your specific needs to help you understand the long-term impact. You deserve to feel informed and confident about this important choice.
