What is a structured settlement?

A structured settlement is a type of legal settlement that a person can receive after an accident in Colorado. It is a method of resolving a claim or dispute out of court. The settlement consists of payments that are made over a period of time, rather than receiving a large lump sum. These payments can be made in one lump sum, or they can be spread out over a period of time. The settlement amount is negotiated between the parties involved and the structure of the settlement can be tailored to meet the needs of the claimant. Structured settlements can be used to pay medical bills, cover lost wages, provide for future medical care, pay for disability or long-term care, and provide for a person’s future financial security. Structured settlements provide an injured party with a regular stream of income, which may be more advantageous than receiving a lump-sum payment. They also can help alleviate the tax implications of receiving a lump-sum payment. Structured settlements can also help protect a claimant from misusing or overspending a lump-sum award and can help them avoid the impact of inflation.

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