Structured settlements are becoming increasingly common. These settlements are a way to pay injury damages in a personal injury award.

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.

It works like this. When you are injured and you press a lawsuit against the other party, the other party is found liable and you are awarded damages. The settlement damages are then scheduled for a payout over time. It is like you are a creditor, and the liable party has to make payments on what they owe you, although they do not pay interest on this. It simply breaks down the amount owed into regular payments.

Your damages will be paid out over the specified period of time. The total amount will be divided up such that it is paid in full. Generally this is paid monthly, and the full amount paid out over years. The exact time frame depends on the amount of the total settlement and the monthly payment.

When you get a structured settlement, it has some benefits for both sides (liable and injured parties). The injured party is assured income over time and for that period at least has a steadier financial outlook.

When you get a structured settlement instead of a lump sum payout, it can help to ensure that you have money coming in over the full length of time you are still having effects from your injury. You may not know how long this will be, and if you get – and spend – a lump sum settlement, then there is nothing else coming in to cover your medical needs or replace lost income.

On the side of the liable party, this is also a benefit. There is a tax reduction because of the structure of the payout. So the tax would be reduced across this period.

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.

In addition to legal settlements, this writer additionally regularly contributes articles regarding buying health insurance and dental sedation.