The Pros & Cons Of Structured Settlement

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What is a Structured Settlement

A structured settlement is a financial offer usually expected as a result of a personal injury claim. It is provided to adjust for the damages and costs that the victim has faced. And it is similar to a compensation for the pain and distress that he/she went through.


When you success in a case, you can select between two kinds of settlements offers:

  1. Lump-sum (All the money at once).
  2. Structured settlements (Sequences of payments over time, generally it’s monthly).

Though the giant cash offer looks tempting, it is not recommended in most cases. Because the plaintiff may overspend the sum or lose all of it as a consequence of a bad decision. You should also be worried about the tax that you may have to pay on this huge amount. So is better to say NO to this temptation.

Quite the opposite, the choice of structured settlements is better for both the insurance company and the casualty. It supports to control the expenditures of the plaintiff and contains benefits for personal injury victims. Furthermore, the insurance company does not drop the whole amount at once and has time to slowly pay the settlement cash to the victim.

Many people have a preference to sell all of it. You can as well sell a few settlements that will cover your desires and at the end of the day you can get the rest of it at once.

Well, next are the pros and cons that you need to think through before selling your structured settlements:


The paybacks of selling your structured settlements:

  1. Weekly lump-sum instead of years.
  2. Pay off your credits (If any).
  3. Invest and produce better interest.


Now, have an expression of the disadvantages:

  1. Can become penniless by losing all of money.
  2. You will be unable to recover almost 10% of the total value.
  3. You will lose all the insurance covers with the sale.
  4. The amount can be taxed, but structured settlement isn’t.

Finally, before you jump to any assumptions, get advice from a finance expert who will lead you better with your decisions. And if you choose to sell it, then go for it. But be watchful where you spend the money. Benjamin Franklin believed, “Be careful of little expenditures. A small leakage can sink a huge ship.”


Article by: Jeffery Barnes

(The best answers when it comes to one question: what is structured settlement? )

  1. Jullian

    June 20, 2015 at 1:49 am

    A written retainer agreement is the best way to ensure that your rights are protected, and in many jurisdictions is required for a contingent fee agreement to be valid. Many personal injury lawyers use a relatively short fee agreement, but even if it looks short and simple you should take your time and read the whole agreement before signing. If there is something you don’t understand, ask for clarification before you sign.


      June 21, 2015 at 6:51 am

      Please note that, when it comes to hiring a personal injury lawyer, many of the best personal injury attorneys do little or no advertising. They get their cases through “referrals” from other attorneys, due to their reputations for doing good work and getting good results.

  2. Chris

    June 22, 2015 at 6:34 pm

    any help on settlement payouts is really appreciated! thx for the info

  3. Kinner

    June 27, 2015 at 1:48 am

    Some lawyers specialize primarily in workers’ compensation law, which is typically handled through a special system of administrative courts.

    • Riiggins

      July 15, 2015 at 2:21 pm

      Generally not, unless your retainer agreement requires your attorney to take on the appeal. Your lawyer will ordinarily only have to represent you on the matters specified in your retainer agreement. Once a final judgment has been entered, your lawyer ordinarily has no further responsibility to represent you or to appeal your case.

  4. Jhanlyod

    June 28, 2015 at 9:50 am

    Thank you for your information

  5. Trafton

    July 2, 2015 at 3:49 pm

    Further, beyond workers’ compensation and medical malpractice, certain law firms specialize in particular types of injury or cause of action. There are personal injury law firms which focus primarily on burn injuries, or brain and spinal cord injuries. There are personal injury firms which concentrate primarily on car accidents, construction accidents, or litigation over defective products. You will benefit from asking whether a lawyer you consult has experience with your type of injury before you make your hiring decision.

  6. Avery

    July 3, 2015 at 1:23 pm

    However, even when the consultation is free, you have every right to take some time to think before you hire a lawyer, and you have every right to decide not to hire the lawyer. Hiring a personal injury lawyer is a big step, and there is nothing wrong with consulting several lawyers to find one who makes you comfortable.

  7. Carmelo

    July 4, 2015 at 2:54 pm

    Although personal injury attorneys rarely charge for an initial meeting with a potential client, before your meeting you should ask if there is a fee for an initial consultation. If there is, you will be obligated to pay that fee even if you do not hire the attorney.

  8. Jordan Neil

    July 6, 2015 at 6:18 pm

    Your lawyer works for you, and you have the right to terminate the attorney-client relationship. Please note, however, that your lawyer is still entitled to compensation for work performed on your case. If the lawyer was representing you on a “contingent fee” basis, the lawyer will often be entitled to a portion of the proceeds of your case once it has been resolved.

  9. Royce

    July 8, 2015 at 3:19 pm

    Usually, before you fire your lawyer, you will want to first talk to a different attorney. Sometimes the new attorney will tell you to try to work out your problems with your lawyer. If you choose to hire the new attorney, the new attorney should be willing to work out the details relating to any fees you may owe to your prior lawyer.

  10. Calfee

    July 10, 2015 at 12:37 pm

    In the event that a dispute arises between you and your lawyer, many state bars offer dispute resolution services. These services can be of particular benefit in the event of fee disputes. If you feel that your lawyer has acted in an unethical manner, each state has a “grievance” procedure where you can file a complaint against your lawyer and have your complaint investigated.

  11. Jaffe

    July 17, 2015 at 1:16 pm

    If you look at the “full page” ads in the yellow pages, you will likely find that there are two types. The first type is an ad for a local attorney, who has chosen to pay for the full page. The second type is an ad for an attorney from outside the area, sometimes from the same attorney who runs the huge television ad campaigns.

  12. Zennette

    July 20, 2015 at 10:24 pm

    Many of the biggest ads will be from personal injury law firms, who anticipate that their large advertisements will bring them large numbers of injury cases. Many of the better personal injury lawyers and firms do pay for full-page ads.

    • Wooten

      August 2, 2015 at 6:25 pm

      Yes. When you are seeking a personal injury lawyer, you should consider that most personal injury lawyers do not practice medical malpractice law, and many do not handle workers’ compensation cases. Just as you would seek a specialized doctor to provide a special type of medical care, the practice of medical malpractice law is very specialized and in seeking a lawyer it is almost always best to seek out a lawyer or law firm which has significant experience in that area of law.

  13. Ellison

    July 26, 2015 at 2:12 pm

    However, as was previously noted, some of the best personal injury lawyers do little or no advertising at all. Also, there are many attorneys who buy the largest ad that they can afford in order to make their practices appear better than they really are.

  14. Jase Parker

    July 29, 2015 at 12:52 am

    If you look through the yellow pages, you will see that most lawyers claim to specialize in “personal injury” cases. Many of these lawyers have handled very few personal injury cases, and some have never had even a single injury case. The yellow pages can provide some degree of confirmation that a particular law firm is established, but even a big advertisement does not certify that a firm is qualified to handle your case.

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