Not all personal injury settlements are paid in a single lump sum. In some cases—particularly those involving catastrophic injuries, minors, or long-term care needs—settlements are structured to provide payments over time.

If you’ve received pre-settlement funding and your case resolves with a structured settlement, you may wonder how repayment works and what to expect. Understanding the interaction between funding and structured payouts helps ensure there are no surprises at resolution.

What Is a Structured Settlement?

A structured settlement is an arrangement where part or all of a settlement is paid in periodic installments rather than a one-time lump sum.

Structured settlements often include:

• Monthly or annual payments

• Guaranteed payment schedules

• Long-term annuity-based payouts

• Lump-sum distributions at specific intervals

They are commonly used in cases involving severe injuries, minors, wrongful death claims, or long-term disability.

Why Structured Settlements Are Used

Structured settlements can offer several benefits, including:

• Long-term financial security

• Predictable income streams

• Protection against overspending

• Potential tax advantages in certain cases

• Support for ongoing medical or living expenses

Attorneys and financial planners may recommend structured payouts when long-term needs are significant.

How Pre-Settlement Funding Is Repaid in Structured Cases

Pre-settlement funding is typically repaid from the initial settlement disbursement, which may include:

• The upfront lump-sum portion of the settlement

• Funds allocated for immediate distribution

Funding providers do not receive payment directly from future annuity installments unless specifically agreed upon in writing.

The attorney coordinates repayment at the time settlement funds are first disbursed.

What If the Settlement Is Fully Structured With No Lump Sum?

In rare situations where a settlement is entirely structured without an initial lump sum:

• Attorneys and funding providers coordinate to determine repayment timing

• Structured payout terms are reviewed

• A responsible repayment plan may be arranged from early installments

Each situation is handled carefully to protect the plaintiff’s long-term financial security.

Does Structured Settlement Timing Increase Funding Costs?

That depends on the funding agreement. Ethical providers with flat-rate pricing offer clear repayment amounts that do not compound unpredictably over time.

When evaluating funding before settlement, it’s important to:

• Inform your attorney if a structured settlement is likely

• Confirm how repayment would occur

• Review payoff amounts clearly in writing

Transparency prevents confusion at resolution.

Why Coordination With Your Attorney Matters

Your attorney plays a critical role in structured settlement cases by:

• Negotiating the payout structure

• Allocating lump-sum and periodic payments

• Coordinating lien repayment

• Ensuring funding repayment aligns with settlement terms

Funding providers should always work directly with legal counsel—not independently of them.

Responsible Funding in Structured Cases

Because structured settlements are designed for long-term stability, funding should be used carefully. Responsible providers evaluate:

• Total projected settlement value

• Lump-sum versus installment breakdown

• Existing liens and legal fees

• Long-term financial impact on the plaintiff

Instabridge prioritizes advances that support short-term needs without undermining long-term financial planning.

Why Plaintiffs Trust Instabridge

Instabridge understands that every case resolves differently. We provide:

• Clear payoff disclosures upfront

• Flat-rate pricing with no compounding surprises

• Non-recourse funding protection

• Attorney coordination at settlement

• Responsible advance limits

Our goal is stability—both before and after your case resolves.

Conclusion: Planning for Both Today and Tomorrow

Structured settlements are designed to provide long-term financial protection. Pre-settlement funding can still play a valuable role in helping plaintiffs manage immediate expenses while litigation is ongoing.

If your case may involve a structured settlement and you’re considering funding, contact Instabridge today. We’ll explain how repayment works clearly and help you make an informed decision that protects both your present needs and future security.