Retirement & Wealth
Structured Settlements
Converting a settlement into scheduled payments rather than one lump sum.
What this cover does
A structured settlement pays a legal settlement in instalments over an agreed schedule instead of all at once. For personal-injury settlements the payments are generally received tax free, and the structure protects against the lump sum being spent or mismanaged early.
Typically included
- Scheduled payments over an agreed term or for life
- Generally tax-free treatment for personal physical injury settlements
- Payment schedules matched to anticipated costs
- Guaranteed periods continuing to beneficiaries
- Cover for minors reaching majority
Common add-ons
- Deferred start dates aligned to future needs
- Step-up schedules to allow for inflation
- Lump-sum elements alongside regular payments
- Special-needs trust coordination
Questions
What people ask about structured settlements
Can I change it later?
Generally not, by design — that permanence is what preserves the tax treatment. Secondary-market sales exist but usually convert future payments into materially less cash today.
Are the payments taxable?
Payments from a qualifying personal physical injury settlement are generally received tax free, including the growth element. Settlements of other claim types may be treated differently and need your attorney’s and tax adviser’s confirmation.
Often taken together
Related cover
Retirement Income Planning
Turning accumulated savings into income that lasts as long as you do.
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