When you accept a structured settlement you are paid interest, which is included in your structured settlement payments. If your total payout is greater than the cost of the structured settlement, that is your interest. So you could say that you have interest in your structured settlement. If properly established and your structured settlement payments represent damages for personal physical injury or physical sickness within the meaning of IRC 104(a)(2) or workers compensation payments within the meaning of 104(a)(1), or wrongful conviction payments within the meaning of IRC 139F and are properly established, such payments are income tax free.

How Structured Settlements Compare
Contrast structured settlements with other investments where you have to pay taxes on interest, capital gains or both AND deal with volatility.