Structured Settlements
What Are they?
When are They Appropriate?
Types of Structured Settlements
A structured settlement is a financial arrangement that pays out regular tax-free payments on an agreed schedule rather than a single payment of money, These structured payment streams are generally awarded to plaintiffs as a result of a personal injury lawsuit, workers’ compensation, medical malpractice, wrongful incarceration or another reason. This arrangement is beneficial when a claimant suffers a permanent and serious injury that prohibits them from working. Structured settlements provide a continuous, stable source of income to a plaintiff. However, unforeseeable events in life arise resulting in a need for more money. These are the moments we specialize in.
In addition to qualification criteria, there are specific cases when structured settlements are appropriate. The examples include:
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A claimant is a minor
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Cases involving serious injuries, such as spinal cord or head injuries, wrongful death, serious burns, multiple fractures, loss of limbs, injuries requiring continuous medical care
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A victim is unable to go back to work after suffering a serious injury
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A victim will have an expensive cost for his or her future medical care
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A victim has poor financial knowledge
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A claimant has a history of addiction to drugs, alcohol or gambling
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An accident has left surviving family members in need of a stable periodic income
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A victim has no need for a lump sum of money
There are more examples and cases of when a structured settlement is appropriate – everything depends on individual situations. It is interesting to note, that these days, an increasing amount of structured settlements are being utilized for non-physical injury claims, such as employment cases, property damage, real estate or business transactions and other cases. In these “non-qualified” cases, settlement funds are not tax-free, but tax-deferred until the time they are paid.
Insurance Companies We Work with
If you have been given a structured settlement, there are a few types of arrangements that it could be, and we will help you determine the best way to restructured the payments for your situation. These are the different types of structured settlements and annuities:
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Life with Period Certain (AKA Life Annuity): periodic payouts for an established number of years or for life, based on the life expectancy of the payee. The beneficiary of the payee is paid for the remaining scheduled number of years in case if a payee dies prior to the assigned number of years.
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Temporary Life Annuity: periodic payouts for an assigned amount of years while a payee is alive. In case a payee dies before the remaining payments are paid out, the payee’s beneficiaries will not receive the funds.
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Lump Sum/Life Contingent Annuity: lump payments scheduled for disbursing on a future date. The payee can set it up for some years into the future. Payee’s beneficiaries will not get any funds after payee dies
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Life Only/Joint Survivor Annuity: monthly payments to a payee for life. In case the payee’s beneficiary survives him or her, the beneficiary will receive monthly payments for the rest of his or her life, after payee dies.
If you are unsure what type of structured settlement or annuity you have, we are here to help! Give us a call so we can determine your situation and explore your options.
Are you currently receiving payments or future payments from any of the insurance companies listed below?
AEGON
Alexander Hamilton Life
Allstate Life Insurance Company
Allstate Life Insurance Company of New York
American General Life Insurance Company
American International Life Assurance Company of New York
American Mayflower Life Insurance Company of NY
Aviva Life Insurance Company/Aviva Life Insurance Company of New York
Canada Life…
CNA/ Continental Assurance
Commonwealth Life (See AEGON)
Confederation Life (See Pacific Life)
Farmers New World
F&G Life Insurance Company
GE Capital Assurance/GE Capital Life of New York
Genworth Life/Genworth Life of New York
Hartford Life Insurance Company
Hartford Life Insurance Company
ING/Security Life of Denver
John Hancock Life Insurance Company
Liberty Life Assurance Company of Boston
Manulife (see right, or John Hancock)
Massachusetts Mutual Life Insurance Company
Metropolitan Life Insurance Company
Monumental Life (See AEGON)
National Integrity Life Insurance Company
New York Life Insurance Company
Pacific Life Insurance Company
People’s Security Life (See AEGON)
Presidential Life Insurance Company
Prudential Life Insurance Company of America
SAFECO Life Insurance Company (See Symetra)
Symetra Life Insurance Company
Transamerica Life (See AEGON)
Travelers Life and Annuity (See Metropolitan Life)
United of Omaha
United Pacific Life (See Genworth)