A structured settlement is often times the result of a personal injury case. When a plaintiff settles for a large sum of money, the result can be a settlement being paid in installments over the course of many years, as opposed to a single lump sum.

How Are Structured Settlement Payments Scheduled?

What is the schedule for a structured settlement? This is a detail that is worked out by the plaintiff, defendant, and their lawyers. For example, a structured settlement may be paid out once per year for several years. Payments can also be made once a month for a shorter period of time. Structured settlement payments can be scheduled for any length of time.

Pros and Cons of a Structured Settlement

If you have a personal injury case, it is safe to say that your attorney is going to talk about the benefits of a structured settlement at some point in time. Consider both the pros and cons before making a decision for or against this. Here are a few of the pros and cons:


  • Settlement payments are protected: In most cases, the plaintiff is protected, even if the defendant files bankruptcy before paying off the structured settlement.
  • Tax benefits: Structured settlements are often tax-free, which can provide many tax benefits to the plaintiff.
  • Flexible options: Negotiations can lead to a flexible payment option that includes a large payment, followed by monthly payments.
  • Dedication of the funds: Plaintiffs can dedicate certain funds to future medical needs, which can allow them to continue receiving medical care for life.


  • Less opportunity to invest: Structured settlement payments may not be as useful to a younger plaintiff who could have invested that money.
  • May not meet current financial needs: Monthly payments can make it difficult to cover a large amount of debt already incurred due to the injury.
  • Risk of inflation or increasing monthly needs: In some cases, monthly payments may not keep up with inflation or the increase in cost of living.
  • Inability to cover large costs: Some people may want to make changes, like in their careers, following an injury, which would require more costs upfront.

These are just a few of the potential pros and cons that come with a structured settlement. It is important to discuss these with your injury lawyer to decide what payout is best for you.

Do I Need a Lawyer for a Structured Settlement?

You may consider working with a lawyer if you have been offered a structured settlement, as they can offer many useful resources. Personal injury attorneys are all too familiar with structured settlements. If you have a case, the end result may be a structured settlement. There is nothing wrong with this payment method, as long as you are comfortable with the details.

A lawyer can help you calculate the value of your case and determine if the structured settlement is a fair payout. We encourage you to reach out to us today to discuss your injury case.