What is a Structured Settlement?

What is a Structured Settlement?
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You may have heard the term “structured settlement” as a way of resolving a claim involving physical injury or with long-term needs.
A structured settlement is an alternative to a one-time cash settlement, one that provides payments over time, as many claims involving serious injury or death call for. These claims may involve lost income or the need for future medical and living expenses, known and unknown.

A structured settlement combines an up-front cash payment, for expenses and immediate needs at the time of settlement, with payments for future needs over time, for as long as a lifetime. Properly structured and delivering fixed and determinable payments, recipients of a structured settlement can receive the periodic payments income tax-free. Funds can be structured to provide growth and availability for unknown expenses or expenses with uncertain timing.

Central to many structured settlements are guaranteed tax-free payments. As shown in this example, These payments cost about a hundred thousand dollars today and result in a payout of more than a hundred and fifty thousand dollars over time.

A professional structured settlement consultant can assist in the resolution of a claim using a broad array of future payment options. They can assist in coordinating other benefits that may be available to settlement recipients, explain benefits to all parties, and address questions as they arise.

Involve a structured settlement consultant early in the settlement process to achieve the best outcome.

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