Structured Settlements Explained

Structured settlements are an increasingly favored investment and payment method for plaintiffs in personal injury cases to receive damage award compensation. Often referred to as “structures,” plaintiffs receive settlement proceeds as an annuity or installments paid over time, rather than in a single lump sum.

Settlement proceeds are used to fund a structured settlement annuity with a life insurance company. Each structure is unique, and can offer an unlimited number of payment stream options. Payments can be equal, or amounts can vary over time. They can begin immediately or be deferred until you require them and can continue as long as you choose. You design a plan that suits your needs. Selected payments will not change regardless of interest rate fluctuations or stock market volatility. What’s more, all payments from a structured settlement are free from state and federal taxation (pursuant to IRC section104(a)(1) and (2)).

At NFP Structured Settlements, we help develop personalized payment streams based on a highly detailed analysis of your specific circumstances. The structure design can provide money upfront for immediate concerns, such as medical expenses or equipment, other out-of-pocket expenses, and attorney fees. Future expenses – from lost wages or long-term care, to mortgage payments, education, spousal support, retirement, and any other potential needs – also are considered.

There are many more benefits of structured settlements. If you have more questions, we would be happy to answer them for you.