A structured settlement can differentiate between long-term financial security and devastating financial hardship after a personal injury. As the leading voice in structured settlements, the National Structured Settlement Trade Association (NSSTA) regularly witnesses how these specialized financial arrangements protect injured individuals and their families.
A structured settlement is a voluntary agreement between a personal injury claimant and the defendant where the settlement is paid out as a series of periodic payments rather than as a single lump sum. These payments are tailored to meet the claimant's current and future needs, providing guaranteed long-term financial security.
Consider Joe's story (as told in the video above), a tunnel worker whose life changed dramatically after a serious workplace accident. At 6'3" and 275 pounds, Joe was a strong, capable professional until a vacuum hose accident left him with severe injuries requiring disc surgery. While he received a settlement exceeding $2 million, his decision to take a lump sum instead of a structured settlement had devastating consequences for his family.
Three key benefits make structured settlements the optimal choice for most personal injury claimants:
Tax-Free Growth: Unlike traditional investments, the money earned in a structured settlement grows completely tax-free under federal law. This significant advantage means more money stays in the pocket of the injured person and their family.
Guaranteed Payments: While stock markets fluctuate and investment strategies can fail, structured settlement payments are guaranteed. This reliability ensures claimants can count on regular income to cover essential needs like housing, medical care, and daily living expenses.
No Management Fees: Structured settlements eliminate the costly fees associated with traditional investment management. There are no account opening fees, transaction costs, or annual management charges that can erode investment returns over time.
A structured settlement provides crucial financial stability for those who can no longer work due to injury. The guaranteed payment schedule prevents the risk of quickly depleting funds or making poor investment decisions during vulnerable times. Professional structured settlement consultants work closely with claimants to create payment plans that address immediate needs and long-term financial security.
Joe's story serves as a cautionary tale. Despite receiving over $1.2 million, his decision to manage the money himself ultimately left his family struggling to cover basic funeral expenses after his untimely passing at age 45. A structured settlement providing guaranteed lifetime payments could have prevented this outcome.
Structured settlements have protected injury victims and their families for decades. As medical costs rise and financial markets remain volatile, these arrangements offer unmatched security and peace of mind. The National Structured Settlement Trade Association continues to advocate for injury victims' long-term financial well-being through professional consultation and carefully designed payment structures.
Consulting with qualified structured settlement professionals can help secure a stable financial future for those facing decisions about personal injury settlements. These experts understand how to create payment plans that protect claimants while providing the flexibility needed for life's changing circumstances.
Learn more about securing your financial future through structured settlements by visiting NSSTA's website or consulting an experienced structured settlement professional in your area. View our list of structured settlement members here: Structured Settlement Consultants Directory
