How Flexible are Structure Settlements?
Structured settlements are funded by life insurance annuities or trust funds. While trust funds invest only in the United States Treasury obligations, life insurance annuities are the preferred way of funding structures because of their pricing and flexibility. Structures are exceptionally flexible and can be designed for virtually any set of needs: medical bills, living on a fixed income, investing responsibly, financing child’s college funds, planning for retirement or estate planning.
A structured settlement’s inherent flexibility means that they are well suited to compensate people for a wide variety of injuries. A relatively simple payment schedule can be set up that provides for equal payments at set intervals – for example, every month for 20 years, yet payments can vary in amounts. Someone who will need a new wheelchair every three years might elect to receive a larger payment every 36 months to help defray the cost. (This would presumably be in addition to the regular payments.)
Your attorney or a structured settlement broker will be able to explain additional details as they apply to your case.