A structured settlement is a financial arrangement that provides periodic payments to a claimant as part of the resolution of a legal case, typically involving personal injury, workers’ compensation, or wrongful death. Instead of receiving a single lump-sum payment, the claimant receives a series of payments over time, ensuring long-term financial security and stability.

Structured settlements are often funded through the purchase of an annuity from a life insurance company, which guarantees the payments as outlined in the settlement agreement. This approach offers numerous benefits, including avoiding sudden-wealth scenarios, tax advantages, protection against inflation, and the assurance of steady income.

Structured settlements originated in the United States in the 1970s as a response to the needs of injured claimants who required long-term financial security. The Periodic Payment Settlement Act of 1982 further solidified their place in the legal and financial landscape by providing tax-free status for payments received in personal injury settlements. Since then, structured settlements have become a widely accepted and preferred method of compensating individuals in various types of legal cases.

In most cases, payments received from a structured settlement are tax-free, which can provide significant financial benefits over time.

Structured settlements provide a reliable source of income, ensuring that claimants receive payments according to the agreed schedule.

Structured settlements can be tailored to meet the specific needs of the claimant, including future income lost, future medical expenses, education costs, and more.

Some structured settlements include cost-of-living adjustments (COLAs) to help protect against inflation, ensuring that the value of payments remains consistent over time.

With payments backed by highly-rated insurance companies, claimants can rest assured that their financial future is secure.

Designed for individuals who have been injured and will receive money pursuant to section 104(a)(2) of the internal revenue code of 1986 as amended. Structured settlements can provide regular payments that can cover medical expenses, lost wages, and other costs associated with the injury.

Benefits: Ensures that the claimant has ongoing financial support for medical care and daily living expenses, offering peace of mind and financial stability over time.

These settlements are tailored for employees who have been injured on the job. Payments are structured to replace lost income and cover rehabilitation costs, often until the claimant can return to work.

Benefits: Provides injured workers with a reliable source of income, reducing the financial stress of being unable to work and aiding in recovery.

When a loved one dies, the surviving family members may receive a wrongful death structured settlement. This settlement provides ongoing financial support to help cover living expenses, education costs, and more.

Benefits: Offers surviving family members financial security during a difficult time, helping them to maintain their standard of living and meet future financial obligations.

Structured attorneys’ fees settlements allow attorneys to receive their fees over time rather than in a single lump sum. This arrangement is particularly beneficial in cases involving large settlements, where spreading payments over a period can provide financial stability and significant tax advantages for the attorney.

Benefits: Structured attorneys’ fees settlements offer attorneys the opportunity to manage their income in a way that aligns with their financial goals, reducing the tax burden by spreading payments across multiple years. This approach also provides a steady and predictable income stream, allowing attorneys to plan for future expenses and investments with greater confidence.

These settlements are specifically designed for individuals who have been affected by Medical Malpractice of medical malpractice. Payments are structured to address the long-term needs resulting from medical negligence, including ongoing medical care and associated costs.

Benefits: Provides individuals who have been affected by Medical Malpractice with the financial resources needed for continued care, rehabilitation, and other related expenses, ensuring long-term support.

If an individual is injured due to a defective product, a product liability structured settlement can be arranged. Payments are typically made to cover medical bills, loss of income, and other damages.

Benefits: Helps injured parties manage the financial burden of medical treatment and loss of earnings over time.

As structured settlment consultants and brokers, Parmelee Brothers Settlement Consultants is here to guide you through the settlement process and ensure you make informed decisions. We believe everyone deserves financial control and security. Our team of brokers work to understand unique needs and long-term goals and develops a structured settlement plan that meets the needs of injured parties, attorneys and clients.