A Simple Guide For Plaintiffs & Attorneys

At Bua Settlements, we specialize in helping personal injury victims like you understand and customize these options. Below is a clear, straightforward overview designed just for you.

What Is a Structured Settlement?  A structured settlement is a way to receive your personal injury compensation as regular payments over time—a set amount of time or for the rest of your life—rather than one single lump-sum payment. Instead of getting all the money at once, the at-fault party (or their insurance company) agrees to future periodic payments tailored to your needs. These payments are usually funded through an annuity issued by a highly rated life insurance company, giving you predictable income for medical bills, lost wages, daily living expenses, or future care. This option is especially helpful after a serious car accident, medical malpractice, or any injury that affects your long-term health and finances. It’s been used successfully for decades and is fully supported by U.S. tax law.

How Do Structured Settlements Work? Here’s the simple process in plain English:

1. You reach a settlement agreement with the at-fault party or their insurer on the total amount you’ll receive for your injury claim.
2. You choose a payment schedule that fits your life—e.g., monthly checks, larger payments every few years, or payments that increase over time to keep up with inflation.
3. The defendant or their insurer signs an assignment agreement with an affiliate of a highly-rated life insurance company and sends them the amount you are deferring.
4. You receive tax-free payments directly according to the schedule you helped design.

The payments are guaranteed. You don’t have to manage investments or worry about market ups and downs—the insurance company handles it all. 

What are the key benefits? Structured settlements are popular for a reason. Many injury victims tell us they provide real peace of mind:

• Tax-free income: For personal physical injury cases, every payment—including the growth earned over time with the annuity—is 100% free from federal and state income taxes.
• Long-term financial security: Payments can last for years or your lifetime, helping cover known and ongoing expenses.
• Protection from poor decisions: A lump sum can disappear quickly due to medical bills, family needs, or bad investments. Structured payments help you avoid that risk.
• Customized to your life: Need money now for bills and more later for retirement? You can take an upfront lump sum with deferred payments with the structured settlement.
• Creditor protection: In most cases, creditors and even divorce proceedings have limited access to structured settlement payments.

Common Ways Structured Settlements Are Used

• Monthly income to replace lost wages
• Deferred payments for future surgeries or home modifications
• College funds for children
• Inflation-adjusted payments that grow over time
• Lifetime payments for catastrophic injuries

The schedule is designed around your needs, not a one-size-fits-all plan.

Are There Any Downsides?

• Payments are fixed (unless you choose increasing or indexed options), so you can’t easily access extra money if an emergency arises.
• You give up some immediate control compared to a lump sum.
• Once the structure is set, changes are difficult (though you can sometimes sell future payments on the secondary market later if needed).

We will walk you through these details so you feel confident in your choice.

How to Set Up a Structured Settlement

1. Work with your personal injury attorney during settlement negotiations.
2. Bring in Bua Settlements early—before you sign anything.
3. Design the payment plan that matches your medical, financial, and family goals.
4. The defendant assigns the payment schedule and funds the assignment company, and payments begin on your schedule.

It’s that straightforward—and it costs you nothing extra to explore.

Ready to Protect Your Settlement?

A structured settlement isn’t about giving up control—it’s about gaining peace of mind and long-term stability after an injury or death of a loved one. At Bua Settlements, we’re plaintiff-only consultants based in Florida serving clients nationwide. We don’t work for insurance companies—we work for you. Our job is to explain every option in plain English, run the numbers, and help you build a plan that truly fits your life.

Call or text us today at (904) 200-0233 for a free, no-obligation consultation. There’s zero pressure and zero cost to learn how a structured settlement could work for your unique situation.