Civil cases frequently conclude with a structured settlement agreement. The defendant arranges for the plaintiff to receive regular payments from an annuity over a period of time. Receiving scheduled payments as a result of your personal injury, worker’s compensation and/or any other related settlement, has many long-term benefits. Knowing what to expect from your settlement agreement can help you best manage your payment stream.

You won’t pay taxes.

Because the plaintiff does not own the underlying annuity policy and controls the payment stream , the plaintiff does not pay taxes on cash received from a structured settlement.

You can plan for financial security.

While structured settlement payments are consistent and reliable, they also might not give you the cash you need at an immediate time. Structured settlements payments can ensure that you have income to cover expenses or that your family will be financially stable. Periodic payments often preserve the money for longer, preventing you from spending too much at once and running out of money too soon.


The payment schedule can’t be changed.

Once you sign the settlement agreement and the annuity contract is issued you cannot change your scheduled payment stream. Your structured settlement is reliable, but many personal injury and worker’s compensation cases involve medical bills and loss of income for a period of time. You may find yourself in need of cash to cover medical expenses or other financial emergencies and unable to access the funds in your structured settlement.


In these situations, you can choose to sell part of your payment stream in exchange for a lump sum. Novation Settlement Solutions can give you cash for your structured settlement to help you avoid surrendering too much in taxes and fees. If you are expecting future settlement payments and need cash now, call 1-877-711-0763 or use our online form to get a free quote for your structured settlement.