What Are The Benefits Of A Structured Settlement Over A Lump-Sum Payment?
A long-term structured settlement has several advantages. First, there is security. A structured settlement provides guaranteed long-term income. That is often invaluable, as it gives the victim (or the victim’s family) the ability to adapt and/or recuperate without spending time and resources determining investment strategies. A second benefit is financial: When Congress amended the federal tax code to encourage structured settlements, it explicitly provided that 100 percent of every structured settlement payment would be exempt from federal and state income taxes.
