If you have had a personal injury case decided in your favor, you may receive what is termed a structural settlement. This is a settlement for personal injury damages that isn’t a lump sum payment but rather a series of payments over time.
The payments are like payments on anything else that you might be making as part of your bills, like a car payment or a house payment, but instead the liable party is paying on their settlement to the injured party, until the entire amount is paid out.
When a personal injury case is decided, there is an amount that is awarded based on damages. If you give someone a structured settlement as their award, you are compensating them for these damages but paying out over time.
Personal injury damages paid in payments can take various structures, but generally are paid each month. The full length of payout is often a number of years.
Believe it or not, a structured settlement has good parts for both the liable party and the injured party. The injured party benefits from getting money paid over time. Otherwise they would end up getting it all in one lump sum.
Part of the benefit of this is that the injured person will have an income to cover any unforeseen issues that are the result of the injury. This is important. It is possible that the effects of the injury can be lasting.
On the other hand, the liable party also benefits. The benefit there is in terms of taxes that are to be paid. The tax burden due on this payout will also be paid in installments this way, instead of being due all at once.
When you have a personal injury case, a structured settlement may be your best option. It helps to know how these work. Such a settlement can ensure you have income over a long period of time, which can really be a major plus.