Why structured settlements? Structured settlements offer much more than the incentive of tax-free income for injured persons.
While the dissipation of any sort of savings is not good, it is particularly egregious for those made vulnerable by injury; namely, those who have suffered a catastrophic injury (e.g., quadriplegia, paraplegia, traumatic brain injury, amputation, and the like). The fact is most people are apt to dissipate lump-sum amounts fairly quickly; 9 out 10 people do so completely within 5 years.
For those of us with normal worklife expectancies, any investment loss could conceivably be offset by working longer and harder. However, for those made vulnerable by injury (e.g., those who have suffered catastrophic injury like quadriplegia, paraplegia, traumatic brain injury, amputation, and the like), there often is no ability or opportunity to work.
Consequently, protection from investment loss is and should be the primary concern, to which structured settlements respond better than any other available investment option.
To the injured, catastrophic or otherwise, and their families, we encourage you to inform yourselves further by reviewing our Structured Settlements FAQ, or contacting us and asking for our explanatory brochure entitled The FAQ on Structured Settlements.