Imagine you're driving home from work, stopped at a red light, when suddenly a semi-truck barrels into the back of your car at full speed. In an instant, your entire life changes. You suffer devastating injuries that will require millions of dollars in ongoing medical treatment. You may never be able to return to your job or enjoy the activities you once loved.
When you've experienced a catastrophic injury due to someone else's negligence, you need an experienced Nashville injury attorney on your side fighting for the full and fair compensation you deserve. At Pete Olson Injury Law, we have a proven track record of securing substantial settlements and verdicts for clients who have suffered life-altering harm. We can help you explore whether a structured settlement may be the best option for ensuring your current and future needs are met.
Keep reading to learn about how structured settlements work in catastrophic injury cases and the advantages they offer.
What Is a Structured Settlement?
In a catastrophic injury case, a structured settlement is an arrangement where instead of receiving compensation for your injuries in one lump sum, you receive a stream of tax-free payments over time. These periodic payments are funded by an annuity from a highly rated life insurance company.
The terms of a structured settlement are highly flexible and can be customized to your unique needs and goals. Payments can be scheduled monthly, quarterly, semi-annually, or annually. You can elect to receive payments over a set period, such as 10 or 20 years, or for the rest of your life. You can also designate beneficiaries to continue receiving guaranteed payments after your death.
With a structured settlement, you have peace of mind knowing that you will have a reliable source of income for as long as you need it. This is especially critical if your injuries have left you unable to work and support yourself and your family.
Advantages of Structured Settlements in Catastrophic Injury Cases
There are several key benefits of choosing a structured settlement over a lump sum payment after a devastating accident:
- Financial Security: With a structured settlement, you don't have to worry about your money running out. You are guaranteed consistent tax-free income for a set period or life, ensuring you can always cover your medical bills and living expenses. Even if you pass away, your designated heirs will continue receiving scheduled payments even if you pass away.
- Tax Benefits: Unlike traditional investments, structured settlement annuity payments are 100% exempt from federal and state income taxes under Internal Revenue Code Section 104(a). This means more of your money goes directly toward your care and support.
- Budgeting: When you receive your injury compensation in a lump sum, it can be tempting to spend it all at once. With a structured settlement's smaller periodic payments, it's easier to budget and control your spending. You don't have to make difficult investment decisions and can simply focus on your recovery.
- Flexibility: A structured settlement is not a one-size-fits-all arrangement. Your legal team will work closely with you to design a payment schedule and terms that are tailored to your circumstances. Whether you need a large initial payment for accessible housing renovations followed by smaller monthly installments or a larger payout every five years for a major surgery, almost any plan is possible.
- Competitive Returns: Structured settlement annuities often provide returns that are comparable to or even higher than traditional long-term conservative investments. You can enjoy steady long-term growth without subjecting your funds to the stock market's volatility.
Determining if a Structured Settlement Is Right for You
While structured settlements offer many advantages, they may not be suitable for everyone. When you work with the dedicated injury lawyers at Pete Olson Injury Law, we take the time to understand your unique situation, concerns, and objectives. We review all your options with you in detail, including the pros and cons of different types of settlements.
- Factors we consider include:
- The extent of your injuries and disabilities
- Your prognosis and future medical needs
- Whether your home requires modifications for accessibility
- Your pre-injury income and earning potential
- Benefits you receive, such as Medicare or Medicaid
- Your family structure and financial obligations
If a structured settlement is right for you, we will bring in a settlement planner to prepare several models of payment schedules for you to compare. Our team will ensure you completely understand the terms of any proposed settlement before you sign.
Speak to a Respected Nashville Structured Settlement Attorney Today
After a catastrophic injury, don't leave your financial recovery to chance. Turn to the trusted legal team at Pete Olson Injury Law. We have helped numerous clients secure the structured settlements they need to move forward with confidence after a tragic accident.