What are the benefits of accepting a structured settlement?A: Structured settlements provide several advantages, including:
- Tax-free income: Payments are generally exempt from federal and state income taxes. Read more here: Are structured settlements taxable?
- Long-term financial stability: Regular payments help claimants manage expenses without depleting a lump sum.
- Customization: Payment schedules can be tailored to suit individual needs.
- Protection from creditors: Depending on state laws, structured settlements may offer protection against creditors and lawsuits.
- No market risk: Payments are not subject to fluctuations in financial markets.