Structured Settlements

Structured settlements are an option in some personal injury cases, especially when larger damage awards are appropriate. Traditionally, when a personal injury case is settled, the insurer who represents the defendant will pay a single cash payment and the plaintiff will receive no other compensation based on the incident. With a structured settlement, instead of one lump sum payment, multiple payments are made over time. This may be done because future medical bills and costs are uncertain, because the party making the payment is unable to pay a single large sum all at once, or because the party accepting the settlement would prefer to have regular income coming in at various intervals. There are both advantages and disadvantages to this option that must be carefully considered before this type of settlement is accepted, because once you accept a structured settlement you are locked in and you may not change your mind. This section provides details about what structured settlements are, how they work and what benefits and detriments are involved.