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How Long Does a Structured Settlement Last?

March 7, 2025
5 min

Structured settlements are financial arrangements typically established following personal injury cases, wrongful death claims, or other legal settlements. But how long do they last? As it turns out, their duration can vary significantly based on multiple factors. To get a better understanding of which of these factors may or may not apply to your financial situation, let’s take a closer look at the timeline of structured settlements and the key factors that influence how long they last…

The basics of structured settlement duration

Unlike lump-sum payments, structured settlements provide periodic payments over time. These payments can be structured in various ways to meet the recipient’s specific needs and circumstances. The duration of a structured settlement is established during the initial settlement negotiation and can range from a few years to the recipient’s entire lifetime.

Common duration patterns

If you’re receiving a structured settlement, more than likely it falls under one of the following timeframes:

Fixed period payments

Many structured settlements are designed to last for a specific period, commonly:

  • Short-term settlements: 5-10 years.
  • Medium-term settlements: 10-20 years.
  • Long-term settlements: 20-30 years or more.

Lifetime payments

Some structured settlements are designed to provide guaranteed income for the recipient’s entire life. These arrangements often include:

  • Monthly or annual payments until death.
  • Guaranteed minimum payment periods.
  • Survivor benefits for family members.

Factors influencing settlement duration

Here are some of the more common variables that impact how long your settlement lasts:

Total settlement amount

The overall value of the settlement significantly impacts its duration. Larger settlements typically allow for:

  • Longer payment periods.
  • Higher periodic payments.
  • More flexibility in payment structuring.

Your needs

The settlement duration often reflects your specific circumstances:

  • Medical expenses and ongoing care requirements.
  • Lost wages and future earning capacity.
  • Age and life expectancy.
  • Family obligations and dependents.

Financial goals

Your financial objectives play a crucial role in determining settlement length:

  • Immediate needs vs. long-term security.
  • Education funding requirements.
  • Retirement planning considerations.
  • Estate planning goals.

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Payment schedule options

Depending on your type of settlement, you have some say regarding your payment schedule:

Regular periodic payments

Most structured settlements follow a consistent payment schedule:

  • Monthly payments for basic living expenses.
  • Quarterly payments for regular bills.
  • Annual payments for larger expenses.

Modified payment structures

Some settlements incorporate varying payment amounts or schedules:

  • Increasing payments to account for inflation.
  • Decreasing payments as needs change.
  • Lump-sum disbursements at specific milestones.

Special considerations

Do any of the following apply to your situation?

Minor recipients

Structured settlements for minors often include:

  • Deferred payments until adulthood.
  • Education funding at college age.
  • Stepped payments during early adulthood.

Severe injuries

Settlements for severe injuries typically feature:

  • Lifetime medical care provisions.
  • Cost of living adjustments.
  • Emergency fund allocations.

Modifying settlement duration

What, if any, ability do you have to change how long your settlement lasts?

Limited flexibility

Once established, structured settlements are generally:

Selling settlement rights

Recipients may have options to alter their settlement through:

  • Partial sale of payment rights.
  • Full buyout options.
  • Court-approved transfers.

Legal protection

Settlement duration is protected by:

  • Federal and state laws.
  • Court oversight.
  • Insurance regulations.

Best practices for settlement planning

The key to making sure you have a structured settlement that lasts as long as you want/need it to is all in the planning:

Professional guidance

You should seek advice from:

Regular review

Even with fixed durations, you should:

  • Monitor payment adequacy.
  • Assess changing needs.
  • Review beneficiary designations.
  • Update financial plans.

The takeaway

The duration of a structured settlement is a crucial element that requires careful consideration during the settlement planning process. While most settlements last between 5-30 years or for the recipient’s lifetime, the specific duration should be tailored to your circumstances and needs.

A well-planned structured settlement can provide stable, tax-advantaged income for many years, but you must carefully consider your long-term needs and objectives when establishing the settlement duration. Regular review and professional guidance can help maximize the benefits of these important financial arrangements throughout their duration.

Let Peachtree help

At Peachtree Financial Solutions, we’ve helped thousands of people get their money sooner by purchasing their future annuity payments for a lump sum of cash. Selling your payments is a regulated process and we have a lot of experience with these transactions. And while every annuity is unique, which means every payment sale will be different, they all have the same basic five steps:

  1. Call one of our representatives.
  2. Receive a free, no-obligation quote for the sale of your payments.
  3. Review and sign the purchase agreement.
  4. We process the agreement with your insurance company.
  5. You get your cash!

Why should you choose Peachtree?

It’s all part of something we call the Peachtree Promise: our experienced, dedicated representatives listen to your goals and clearly explain your available options. We meet you where you are without judgement and work hard to help you meet your financial goals. Getting your quote is completely free, and you’re under no obligation to sell to us if you aren’t completely satisfied with what you hear.

All transactions are at Peachtree’s sole discretion and are subject to court approval and other underwriting requirements. Peachtree does not provide legal, tax or financial advice; please consult with appropriate independent professionals for such advice.

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