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Why a structured settlement is a good option for workers' compensation

Any workers' compensation case can be eligible for what's called a "structured settlement." To help make sense of why this might be a good option in your case, consider some of the following facts. 

What is a Structured Settlement? 

A settlement amounts to a sum of money negotiated by the two parties (a plaintiff and a defendant) to compensate for an employee's injuries on a job. Generally speaking, the plaintiff (employee) agrees to discontinue any further legal action in exchange for either a "lump sum" payment or a "structured" payment. The structured settlement consists of regular payments over an extended period of time. 

Why choose a structured settlement instead of a lump sum?

It pays out over time, so you can get on with your life

A structured settlement is paid out regularly over time, and thus can serve as a steady stream of income in the event that you cannot work. It provides the consistency of a predictable payment plan that helps you get on with your life despite your injury.

It makes new medical discoveries a possibility

A structured settlement also allows you to pursue newer medical treatments for your injury as they become available. So while there may not be an option for treatment at the time of the injury, a structured settlement will help ensure you have the money you need for modern treatments when they become available through future medical advancements.

It can speed the process along

Employers like structured settlements because they are more cost effective. They allow the employer to slowly compensate a plaintiff instead of being obligated to pay out everything all at once. That puts the plaintiff in a better position to negotiate. 

More money in your pocket in the long run

Most plaintiffs who settle for a lump sum payment decide to invest their money, which makes it taxable as income. If you instead opt for a structured settlement where you earn payments regularly over time, that money is less likely to be taxable, which means you get to keep the money that's due to you.

Every workers' compensation case is different, so it's important that you talk to an attorney about your options when faced with a potential payout for your injuries. He or she can advise you on whether a structured settlement is the best path forward in your case.  

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