If you are entitled to receive an insurance settlement, you can claim it either in a lump sum or as a structured insurance settlement. Both methods have their pros and cons.

In a structured settlement, you receive your benefits in a staggered manner. In other words, you would get the payment assigned to you over a certain time period. This method works if you would like to have access to funds at different stages of life and think you, individually, may not be able to wisely invest a lump sum amount. With a lump sum settlement, you are given all your claim money as a one-time payment. This method is good if you require your entire funds immediately or if you have a better investment plan than a structured settlement can provide.

It is important to note that not everyone is entitled to receive a structured settlement. They are accessible only to those who receive money because of a physical injury. Another aspect that one has to keep in mind is that in order to get structured insurance settlements, the awarded person should clearly state his or her desire for such settlement at the time of settlement agreement.

A structured settlement is a good way to receive tax