A major concern for many people who are settling their claims is ensuring that, following their own deaths, their families or dependants will be protected.  Structured settlements offer an excellent solution.

Most structured settlements can incorporate a guarantee of some or all of the payments.  This means that the guaranteed payments will be all paid, even if the injured person dies before all of them have been made.  Any remaining guaranteed payments following their death simply flow to their estate or named secondary payee.  The estate or secondary payee simply steps into their shoes and continues to receive the payments on the same periodic, tax-free basis.  This provides injured people with the peace of mind of knowing that their family or dependants have been provided for, following their own deaths.

Where structures include estate protection, this means that the injured person controls who will receive the payments in the event of their deaths.  If their circumstances change (and they are legally capable of doing so), they can change their Will or secondary payment direction at any time.

Naming a secondary payee can be a significant benefit, since it means that the structure payments flow outside the estate.  They are not subject to probate fees or creditors of the estate.  Further, there is unlikely to be any delay in the flow of the payments once a death certificate is produced.  The death certificate is provided to the life insurer and the payments immediately begin flowing in accordance with the secondary payment direction.  There is no need to wait for a Will to be probated.

As you can see, a structured settlement provides security not only to injured people while they are living, but also gives them the peace of mind of knowing that their loved ones are protected and will receive periodic, tax-free payments following their deaths.