Your only exposure to the term “structured settlement” may be late night TV ads hawking immediate access to your money. “It’s your money,” they’ll exhort. “Cash in your structured settlement and use your money now!” If you are (or were) a successful plaintiff in a lawsuit, your contact with structures may be more personal. You may have received one, be evaluating one now, or have considered one but opted for cash.
But what should you know? Even if you already have one, you may not know how they operate and why they’re set up in the arcane fashion they are. Like so much else in the world, structured settlements are mostly about taxes.
Cash vs. Periodic Payments. If you’re injured in a car accident and receive a $300,000 settlement from the other driver or insurer, it’s tax free. See 10 Things To Know About Taxes On Damages. When you invest the $300,000, your investment earnings are taxable. If you receive a structured settlement instead of the $300,000 cash, you’ll get payments over a term of years or your lifetime (however you choose), and each payment is fully tax free. Thus, a structure converts your after-tax earnings into a tax free return.
Structured settlement brokers (a special type of insurance agent) consult as a case approaches settlement. For more about brokers, see National Structured Settlements Trade Association. Brokers are paid standardized commissions by the life insurance company that issues the annuity. Brokers can run many financial projections based on a term of years, payments over your life, over your joint life with your spouse, etc. You can even call for no payments for say 10 or 15 years, with payments starting thereafter as a way to fund your retirement.
Thus, structured settlements are very flexible. Provided that you consider these issues before signing a settlement agreement in your case, you can structure as much or as little as you want and take the rest in cash. With all of this, though, they have to be set up properly.
source: http://www.forbes.com/sites/robertwood/2010/10/26/whats-a-structured-settlement/#fed135233bdb
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Structured settlement brokers (a special type of insurance agent) consult as a case approaches settlement. For more about brokers, see National Structured Settlements Trade Association. Brokers are paid standardized commissions by the life insurance company that issues the annuity. Brokers can run many financial projections based on a term of years, payments over your life, over your joint life with your spouse, etc. You can even call for no payments for say 10 or 15 years, with payments starting thereafter as a way to fund your retirement.
Thus, structured settlements are very flexible. Provided that you consider these issues before signing a settlement agreement in your case, you can structure as much or as little as you want and take the rest in cash. With all of this, though, they have to be set up properly.
source: http://www.forbes.com/sites/robertwood/2010/10/26/whats-a-structured-settlement/#fed135233bdb
tag:
ettlement annuity fees,structured settlement annuity funding,structured settlement flexible annuity,structured settlement fixed annuity,annuity for structured settlement,structured settlement immediate annuity,mj structured settlement annuities inc,what is structured settlement annuity,pacific life structured settlement annuity,new york life structured settlement annuity,structured settlement annuity market,metlife structured settlement annuity,sell my structured settlement annuity,single premium structured settlement annuity,sell structured settlement annuity,structured settlement loans wiki,structured settlement loan calculator,structured settlement loan reviews,oasis structured settlement loans,pre structured settlement loans,structured settlement pension loans,how do structured settlement loans work,seneca one structured settlement loan check,what is structured settlement loans,loans on structured settlement,sell structured settlement calculator,structured settlement broker fees,structured settlement brokerage,eps structured settlement brokers,how much do structured settlement brokers charge,how much do structured settlement brokers make,
Many civil cases, particularly accident and personal injury lawsuits, never make it to trial because the parties reach a settlement agreement earlier in the litigation process. Generally, a settlement requires the plaintiff (person brining the lawsuit) to discontinue any further legal action in exchange for receiving a money payment from the defendant or the defendant’s insurance company. Settlement payments are usually lump-sum (all at once) or structured (regular payments over a period of time). - See more at: http://injury.findlaw.com/accident-injury-law/structured-settlements-pro-s-and-cons.html#sthash.PZvNwVKU.dpuf
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