If you’ve received a significant injury award from a lawsuit, you may wonder how to make the most of it. A structured settlement allows you to receive your compensation over time instead of all at once. This setup can provide greater financial security and help you manage your money more effectively. Rather than worrying about how to stretch a single lump sum over decades, structured settlements offer predictable payments that can support your needs well into the future.

Structured settlements are tailored to your specific needs. You’ll work with a financial planner or attorney to determine the best payment schedule for your situation. The timeline is flexible, depending on whether you prefer monthly, annual, or periodic lump sum payments. These payments are typically funded through an annuity purchased by the defendant’s insurance company, which ensures they continue no matter how long you live. This approach can reduce financial stress and make your future more predictable.

Your settlement in smaller, scheduled amounts can protect you from overspending or poor financial decisions. When people receive a large sum all at once, it’s easy to underestimate how fast the money can disappear, especially when factoring in inflation, unexpected expenses, or emotional spending. A structured settlement helps you pace yourself and allows for more thoughtful financial planning. This setup is beneficial if your injury has left you unable to work or created long-term medical needs that require consistent funding.

One significant advantage of structured settlements is that the payments are typically tax-free. Unlike other forms of income, this type of compensation is generally not taxed by federal or state governments, which means you keep more of what you’re awarded. Additionally, because the annuity is owned by the insurance company—not you—it may be less vulnerable to creditors or judgments in certain situations. This legal structure can offer peace of mind if you’re worried about future financial challenges or legal issues.

Choosing a structured settlement could mean the difference between short-term relief and long-term stability. You’re not just accepting money—you’re building a plan for what comes next. This option helps ensure you won’t run out of funds when needed. Whether your injuries require ongoing care or you’re focused on protecting your family’s financial future, structured settlements can provide the consistency and confidence you deserve.

You don’t have to make these decisions alone. EFS Law Center supports you through every step of your legal and financial journey. If you’ve been injured and need help securing the compensation you’re entitled to, call us today at (310) 800-0000. Let’s work together to create a plan that protects your future.