A structured settlement pays out over time instead of in one large lump sum payment. Structured settlements may be available following a settlement or verdict in a personal injury case or a worker’s compensation agreement. There are advantages and disadvantages of a structured settlement over a lump sum payment.

The attorneys from Berger and Green can help you weigh your options based on your unique circumstances.

When Are Structured Settlements Used?

In general, structured settlements may be more useful in situations where the accident victim suffered more serious injuries. A structured settlement may work well for you if:

  • You require ongoing care
  • You may need additional surgery or other future care
  • You have a permanent impairment related to your injuries

You can often get more money through a structured settlement than from a lump-sum payment. However, you get moderate payments over time instead of one large payment. If you believe a structured settlement might be right for you, the team from Berger and Green can help you weigh the pros and cons.

Structured Settlements Invest Your Payout

A structured settlement gives you tax-free income regularly over a period of time. As a part of negotiating a settlement, you will determine the terms of the structured settlement. This includes:

  • How much each payment will include
  • How long they will continue
  • Cost of living increases
  • The size of the initial payment

After your initial payment in a structured settlement, the rest of the money gets invested. This is most commonly invested in an annuity. It continues to grow over the period while you await the rest of the payments. Most commonly, insurance companies use life insurance policies to manage these payouts. 

You Cannot Change a Structured Settlement

The biggest downside of a structured settlement is that you cannot alter the terms once you reach an agreement. After the insurance company pays out the agreed on initial payment, a representative will invest the rest in an annuity. You cannot later swap to a lump-sum settlement or get more money early even if you need it to pay for medical care costs.

It is imperative you do not try to structure a settlement on your own. We can help you calculate how much you need in your initial payment to cover any outstanding bills and attorney’s fees and ensure you receive cost of living increases over time.

Talk to a Pittsburgh Attorney About Your Settlement Options Today

At Berger and Green, our team can help you understand your options for how to receive your payout in a personal injury or worker’s compensation case. Let us review your case for free and handle pursuing the money you need, including negotiating your settlement or litigating your case. We will fight for the compensation you deserve.

Call our Pittsburgh office today at 412-661-1400 to get started.