| Structured personal injury settlements are the legal | | | | large sums of money all at once, a structured |
| agreements between two different parties where | | | | personal injury settlement is the best route. |
| one party pays over a specified time to the other | | | | In worker's compensation cases, cases in which the |
| one. These settlements generally occur in the case | | | | person has died, or cases for which the court has |
| of any personal injury. An insurance company pays | | | | already awarded damages, structured settlements |
| the injured party through annuity payments. This is | | | | are not possible. Payments in the structured |
| done while releasing a defendant from liability. The | | | | settlements are classified into two components. They |
| insurance company and their affiliates guarantee | | | | are the initial cash payment and the periodic cash |
| payments in the structured settlements. | | | | payment. Initial payment provides some part of |
| Structured settlements are tax-free when they fund | | | | money for the immediate need, while the periodic |
| any personal physical injury claim. Structure | | | | payment is the one in which the payments are done |
| settlements are also used for non-personal injury | | | | many times over a specified time. |
| claims. There are various criteria that have to be met | | | | In general, structured settlements can be paid under |
| for the structured settlements, as far as they are | | | | a structured settlement agreement. Based on this |
| relevant to your personal injury claim. | | | | agreement, an injury victim only receives the |
| If the loss amount is much more than $10,000 then | | | | payments in periods and not in lump sum. The |
| there is an opportunity to defer some of your | | | | payments are tax-free. They help to meet the |
| payments for more than three years of time. When | | | | victim's future basic needs and medical expenses. |
| the injured party feels more secure with the steady | | | | Settlements provide better tax advantages than |
| payments inherent in structured settlement, or when | | | | fixed annuities. Liability is removed from the |
| the injured party feels uncomfortable with managing | | | | defendant's record. |