Structured Settlements provide:
Risk protection through guaranteed, regular payments
Structured settlements are designed to provide confidence and security. Unlike traditional investments, which can lose money, structured settlements are guaranteed and, therefore, protect you against market volatility and interest rate fluctuations. Cases involving serious injuries and continuing medical expenses present the additional risk of outliving a settlement. Choosing a structured settlement transfers these risks and the hassle of money management from your shoulders to an insurance company and protects your settlement funds against loss from market downturns or even mismanagement.
Many lump sum settlements meant to last for decades are exhausted within only a few years. With a regulated life insurance company delivering your scheduled payments over a defined period of years, or even your lifetime, you will receive guaranteed income that helps ensure you have the money when you need it.
Structured settlement payments can be used to meet everyday needs as well as significant medical expenses or even future obligations like your retirement or a child’s college education. Payments can start immediately or be deferred to a future date. They can be made monthly, quarterly, annually or in future lump sums. If your needs are expected to increase at some point, your settlement can be structured so payments increase at that time, and you can also elect to build in cost-of-living adjustments.
One of the greatest risks of a lump-sum settlement is the temptation to overspend and exhaust your funds. Reports from plaintiff attorneys with significant personal injury experience confirm that, unfortunately, many large lump sum settlements are completely gone after only a few years.