Structured settlement is a periodic payment given to a claimant as a result of a lawsuit where the defendant will have to pay a considerable sum of money. The total amount of judgement is broken down into scheduled payments with the purpose of settling the judgement over time.

There are many benefits associated to structured settlements. The primary advantage of it is its being tax free. Although the periodic payment being received from the settlement is considered as an income, it is not included on the annual gross income, thus it is not taxable.

Structured settlement also brings security to the claimant. The claimant reduces the risk of being taken advantage of if they only have a small amount of money available to them. This can also ensure security to those who have children, because it can be used for their college education.

Having an extra source of income from the monthly structured settlement payment provides financial stability. This is especially beneficial to those who have medical expenses to take care of or to those who are in a fixed income. The additional money to augment the budget relieves the claimant of the stress that most people have over their living expenses.

The guarantee that the structured settlement is only for the claimant alone can provide him with a peace of mind. It does not affect the claimant’s Social Security benefits, nor can it be touched during divorce proceedings. Creditors cannot claim this as payments for debts. Thus, allowing the claimant to live his life without the worry of losing this income in the future.

Agreeing to a structured settlement can be the cheapest way to go about the court proceedings. It eliminates the need for lengthy court battle as well as reduces the fee to be paid to lawyers. In this aspect, this is beneficial to both claimant and defendant.

In the end, structured settlement can be the best help that a victim could get if he loses his capacity to earn a living because of the damage done to him by the defendant. It could also help in the rehabilitation of the claimant while he is temporarily unemployed.