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Is a lump sum disability claim settlement taxable?

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Like structured settlements, lump sum settlements received as a result of a judgment in the case of injury or disability are not taxable, either. And, if the recipient of the award is relatively young, a structured settlement may be the worst option available, because it does not account for inflation or future changes in lifestyle. The advice of a qualified financial advisor or Certified Financial Planner should be sought before determining if a structured settlement is even a viable option. The reason most insurance companies will push for a structured settlement is because the insurance company wins by doing so. If a dollar today is worth more than a dollar a year from now due to inflation, of course the insurance company would prefer to pay you a flat rate per month for the rest of your life, rather than give you a large lump sum in cash. Believe me, if it sounds too good to be true, it probably is. Measure twice. Cut once.
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