Don’t take the bait! A structure is a safer and more beneficial option than depositing a lump sum anywhere.
- Structures are the ONLY tax-free option. Any interest or gains that you make from the investment of a lump sum is subject to state and federal taxes. Every payment from a structure—including cost-of-living increases—are entirely free from taxes. Not tax-deferred, tax-free.
- Structures protect you from most creditors. Any lump sum deposited into your bank account or an investment account is considered an “asset;” it can be attached to pay any creditors, including from bankruptcy, divorce, or any other form of debt. Subject to a few exceptions, a structure is considered a “policy.” That makes it immune from being seized or garnished.
- Structures are not dependent on the stock market. Countless people have lost their lump sum settlements in times of stock market volatility. They invested at the wrong moment or made bad picks, with devastating impacts on their financial futures. Structures are free from stock market impacts. They are backed by insurance companies obligated to pay you the exact amounts you are owed on time, over time.
- Structures get 2-3x the return of a savings account. Structure payments are not taxed, but interest rate gains are. Depending on your tax bracket, you would likely need to exceed at least a 6% interest rate on your lump sum in a savings account to get a comparable return (at a time when the average rate is 2-3%).