Anderson Injury Lawyers | April 11, 2025 | Personal Injury
A structured settlement is an agreement in a personal injury lawsuit to pay a settlement or jury verdict over a period of time. Instead of receiving an immediate lump sum payment, the injured party receives periodic payments. Structured settlements may be used in all types of personal injury claims, including car accidents, wrongful death claims, and workplace accidents.
Structured settlements have benefits and drawbacks. This article discusses different types of structured settlements and the factors parties should consider before accepting a structured settlement.
Types of Structured Settlements in a Personal Injury Case
Structured settlements may be arranged in several ways. Options for a structured settlement include, but are not limited to:
- Periodic payments paid at set intervals, such as monthly or quarterly payments
- Lump sum distribution and periodic payments sets up one lump sum and then periodic payments for the remaining settlement balance.
- Deferred payments begin at a future date and continue for the term of the structured settlement.
- Life-contingent payments are paid periodically for the person’s lifetime.
- Annuity structured payments guarantee a steady source of income for the person’s life and may be paid to a survivor.
- Periodic lump sum payments may be paid at specific intervals in addition to periodic payments.
- Decreasing or increasing payments may be structured for a specific period or over a person’s lifetime.
A personal injury lawyer can assist you with choosing the structured settlement that is best for your situation. For example, if you currently work, you may choose a structured settlement with increasing payments so that you receive more of your settlement during your retirement years.
It is also wise to consult your financial advisor as well as an attorney with experience in tax law to determine how a structured settlement can impact your financial situation now and in the future. While the income from most structured settlements is tax-free, there may be circumstances where choosing a lump sum instead is in your best interest.
What Damages Are Included in a Structured Settlement for a Texas Personal Injury Settlement?
The settlement for your personal injury case can include economic and non-economic damages. Examples of the damages you could receive for a personal injury case include, but are not limited to:
- The cost of medical treatments and care, including rehabilitative therapies, surgeries, hospitalizations, and doctor’s bills
- The anticipated cost of future medical and/or personal care for lifelong conditions, such as paralysis, amputations, catastrophic injuries, and other impairments
- Emotional distress and mental anguish
- Out-of-pocket expenses, including household services and travel to and from medical appointments
- Loss of enjoyment of life and diminished quality of life
- Scarring, disfigurement, impairment, and disability
- The loss of income, including future lost wages, employment benefits, and earning capacity
The amount you receive for a personal injury claim depends on many factors. The type and severity of your injuries are significant factors. However, the strength of your evidence proving liability and whether you could be partially to blame can also be important factors in your case.
How Do I Decide Whether To Accept a Structured Settlement?
Before accepting a personal injury settlement of any type, it is in your best interest to consult an attorney. A settlement agreement is a binding legal contract. Once you give up your right to pursue other claims or file a lawsuit, you cannot change your mind. Set up a free consultation with an attorney today to learn about how best to move forward.
Visit Our Personal Injury Law Firm in Texas
If you’ve been injured in an accident in Fort Worth or Dallas and need legal help, contact our personal injury lawyers at Anderson Injury Lawyers to schedule a free consultation. We proudly serve Tarrant County, Dallas County, and throughout Texas.
Anderson Injury Lawyers – Fort Worth Office
1310 W El Paso St, Fort Worth, TX 76102
(817) 294-1900
Anderson Injury Lawyers – Fort Worth Office (Secondary)
6618 Fossil Bluff Dr # 108, Fort Worth, TX 76137
(817) 631-4113
Anderson Injury Lawyers – Dallas Office
408 W Eighth St Suite 202, Dallas, TX 75208
(214) 327-8000
