In simple terms, a structured settlement is a financial tool for injured workers when they settle their workers compensation claim. They choose a structured settlement instead of taking one lump sum payment.  Regular payments are then made over a specified frequency and period of time to match your future needs and goals. Financial advantages include:Structured Settlement

  • Guaranteed payments
  • Tax free
  • 100% lifetime exclusion from income, dividend, and capital gains taxes
  • Customization to meet both immediate and future financial obligations
  • No risk of losing money on market vulnerable investments or from poor financial management


You may want to consider structured settlements if your claim involves:

  • Long term medical needs
  • Temporary or permanent disabilities
  • Minors or the mentally incompetent
  • Severe injuries that result in brain damage or shortened life expectancy
  • A surviving spouse and/or dependents in a death case


Structured settlements may also help an injured workers and their family prepare for the future by protecting their funds and (depending on how the policy is dispersed) may help ensure that the injured worker is still eligible for other state and federal benefits (Medicare, Medicaid or Social Security).  It is best to consult an experienced workers compensation attorney if you are considering settling your claim, as this process can be complicated and you will want an attorney to make sure all of your funds are properly allocated.


If you are settling your workers compensation claim or if you would like more information on the Virginia workers compensation system, order my book, “The Ultimate Guide to Workers’ Compensation in Virginia” by clicking this link, or call our office today (804) 755-7755.