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Structured settlements are great options for many different cases, such as personal injury lawsuits, mass torts, and more. They often help speed up the conclusion of a lawsuit. A structured settlement provides stable life-long income with built-in budgeting and minimal taxations. Here are some of the advantages of a structured settlement.

Cost of living adjustments

A structured settlement can be set up with the cost of living fluctuation in mind. They can be designed to adjust to the yearly cost of living to more accurately meet your day-to-day needs.

Money management

Structured settlements have a form of built-in money management and can protect the plaintiff from bad investments. Because they are paid out over a predetermined time with pre-agreed upon amounts, structured settlements act as a monthly supplemental income. This helps protect the plaintiff from poor investments, spending the money too quickly, and other common financial problems. Many plaintiffs who receive a lump sum payout spend the money in five years or less—a structured settlement prevents this.

Minimal taxes

Most elements of a structured settlement are non-taxable. There are some exceptions to this, such as any money settled from purely emotional damage. All physical personal injury settlement funds are non-taxable, though. Putting your settlement money into a structured settlement can also save you from paying a large tax on the funds all at once.

Market safety

The funds inside your structured settlement are not affected by fluctuations in the market. This means your payments will not deplete faster in a crashing market or increase in a flourishing one, making it easier to plan and more secure.

Possible interest

There is a chance for some structured settlements to acquire interest over time, making your settlement worth more as a structured settlement than as a lump sum upfront.


Structured settlements are very customizable to the individual plaintiff’s needs. Payment amount and frequency, occasional lump sum dumps, and how much time the money will stretch over are very interchangeable. This is to meet and serve the plaintiff’s needs and is determined with their best interests in mind.

Safe from outsiders

If the plaintiff goes through a divorce, the funds in their structured settlement are not accessible by their ex-spouse. The structured settlement is also not accessible by the plaintiff’s creditors, making it safe from outsiders.