Structured settlements as we know them today came about in 1982 when the U.S. Congress passed The Periodic Payment Settlement Act of 1982 (Public Law 97-473). The act enables injury victims to obtain customized structured cash payments plans through insurance annuities that assure them guaranteed, tax-free income over time.
Structured settlements have helped injured individuals and their families obtain financial security even in the face of lifelong medical challenges. According to the National Structured Settlement Association, more than 25,000 such arrangements are drawn up every year.
Prudential recently shared videos of individuals who have experienced traumatic injury—either to themselves or to family members. They show how structured settlements made a difference in their lives. The videos were produced by Prudential with the help of the Structured Solutions Leadership Council
Attorneys often ask me, "When is the best time to bring in a structured settlement broker to a case?" The short answer is early.
Using structured settlements in personal injury cases is common. Use a resolve in workers’ comp claims where an employee is permanently disabled- less so.
I am often asked about the safety of the annuity payments we use for structured settlements, particularly by those who need those payments over their lifetime. Judges are also interested in annuity safety especially before approving a Minor’s Compromise. Judges want to be confident that the insurance carrier issuing the annuity has the financial strength to provide scheduled payments over the life of a structured settlement—no matter how long that may be.
While low interest rates are good for the economy, the anemic rates are frustrating for individuals who rely on interest payments as an important part of their income. Investment decisions can become confusing. However, for injured parties who must be sure they have enough money to pay for current and future medical bills and other living expenses, the decision remains easy.
Younger injured parties (under age50) can often benefit from the use of an inflation-adjusting component in their structured settlement.
Almost half of U.S. retirees die with savings of $10,000 or less, but that grim finding doesn’t fully describe the variability and uncertainty that characterize retirement in America, according to a recent study.
A recent article (December 18, 2011) in the Los Angeles Times discussed the track record of 529s and found that timing has much to do with how a 529 account ultimately performs.
