by John Darer CLU ChFC CeFT MSSC RSP CLTC
It’s not a bad thing if the insurance company is offering a structured settlement
It’s a positive step in the process. It means that the defendant or its insurer is attempting to consider your needs
- That’s a hell of lot better than an offer that has no bearing on your needs.
- It is important to remember that settlements come about as the result of a negotiation.
- While some cases have similarities, each lawsuit or claim follows its own unique path. The ultimate value and resolution are distinctive for each case.
- Nobody expects you to take the first offer. Your attorney has probably explained that your initial demand is likely to be countered with a lower number.
What are the merits of a Structured Settlement?
What can a Structured Settlement do for you?
- A structured settlement is helpful to help quantify the cost of providing known expenses or replacement of future income,whether yours. or your parent or spouse.
- A structured settlement may help lower the cost of a Medicare Set aside by 20-30%
- A structured settlement can provide you with a baseline of stable income for a period of time or for the rest of your life. You can name a beneficiary too.
- A structured settlement in an employment case may help with tax planning and assure that you will walk away with more than you would if you factored in attorney fees and taxes on your settlement.
Just because an insurance company proactively offers a structured settlement as part of its offer or counteroffer, doesn’t mean you can’t also work with a settlement expert.
Just because the house you want is listed by a broker that you do not know, it doesn’t mean that you cannot have have the structured settlement version of a “buyer’s broker” (even though technically the structured settlement annuity is purchased by the defendant, it’s insurer or a qualified assignment company).
The introduction of the concept of a structured settlement early on instead of at the last minute gives you the time and opportunity to research and evaluate the concept and your needs. This may serve to reduce some of the pressure when the case eventually settles.
Related Reading
Structured Settlements | What is a Structured Settlement? (4structures.com)
Types of Structured Settlement Payments | Payment Options (4structures.com)
Taxable Equivalent Yield Chart: Structured Settlements Tax Benefits
Structured Settlements for Minors | What You Need to Know
What is Settlement Planning? Settlement Advisors and Financial Transitionists