Settlements 101.com -- Info Guide to Injury, Accident & Insurance Settlements

About Structured Settlements

Structured settlements, also called personal injury settlements or settlement annuities, are payments that a claimant receives over time instead of as a lump-sum settlement payment. Such payments are made through an annunity held by a life insurance company.

A big advantage of a structured settlement is that any payments received are exempt from federal taxes. In addition, any earnings or interest made on the annuity is also exempt from federal taxes as ruled by the IRS.

The claimant of a structured settlement is usually able to sell the rights to the settlement to a third-party that will pay the claimant a one-time lump sum.

Request a FREE Case Evaluation with a Local Attorney!