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How Do Structured Settlements Work?

Posted on the 05 August 2014 by Webforjason

structured settlements

They've gotten a fair amount of exposure in late night television ads, but do you really know what structured settlements are? If you were successful, or plan to be successful, in a civil lawsuit, it may be a good idea that you familiarize yourself with it.

A structured settlement is a powerful financial tool for people who have won a large sum in an injury settlement. Rather than getting that money in one lump sum, you can receive payments over time.

So, why would you want to consider a structured settlement?

  • Maybe you’re not great with managing your money and prefer having predictable smaller payments, rather than being tempted to spend it on non-essentials.
  • The payments are exempt from taxes for its entire lifetime.
  • It’s safer than investments vulnerable to market fluctuations.
  • Payments are highly customizable. You can set the length of the payments, how often you receive payments, and how much you receive in each installment.
  • If you will need medical attention over a long period of time, or for the rest of your life, a structured settlement ensures you will have money to cover the expense.

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