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A structured settlement’s most important advantage is security. It provides long term payments that are guaranteed by a life insurance company (such as AIG/American General insurers).
A second advantage is its tax-free position. All payments made via a structured settlement are nontaxable by federal tax guidelines (IRS Section 104(a)(2). 100% of every payment is tax exempt.
Lastly, a structured settlement allows the injured party to tailor payments over his or her life. There is no need to meet periodically with an investment or tax advisor. Payments are decided during the initial settlement and then are directed to the injured victim. It gives peace of mind, security, and confidence over the long term.
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