Structured Settlement Company
A structured settlement company handles a variety of annuity programs such as physical injury settlements, malpractice lawsuits, commercial contracts, employment settlements, and discrimination matters.
A structured settlement company typically consists of several consultants who specialize in various fields. Consultants are well-versed in the laws associated with the type of structured settlement annuities they establish for their clients.
One of the most common types of structured settlements is physical injury claims. These can stem from car accidents, medical malpractice, work related injuries, or injuries which occur due to the negligence of an individual or business.
Structured settlements are arranged to provide financial payments over a specific period of time. In some cases, Annuitants receive annuity payments for life, while others receive financial compensation for five to twenty years. Much depends on monetary losses incurred by the Annuitant, along with required funds to provide adequate living expenses and required medical care.
The amount of annuity payments and duration of structured settlements is based on the anticipated amount of money Annuitants will require to cover their costs of living, along with medical care, prescription medications, physical therapy, or other forms of medical treatment.
In most cases, individuals who are injured must incur a financial loss of $10,000 or more before a structured settlement annuity plan is established. This amount is reduced to $5,000 when minor children are injured. Annuity payments are often placed into a trust when structured settlements are arranged for children under the age of 18.
Structured settlement company consultants are trained to develop annuity payment plans to meet current and future financial needs of their clients. Annuities can be paid monthly, quarterly, bi-annually or annually. Long term annuity payments are structured to include provisions for cost-of-living inflation to ensure Annuitants will receive sufficient compensation to cover rent or mortgage payments, utilities, food, and basic necessities.
Structured settlements provide considerable flexibility during the initial drafting phase. Provisions can be included to provide additional funds for costs which do not occur on a monthly basis.
For example, a person employed as a restaurant cook is severely burned and requires multiple surgeries for skin grafts. His structured settlement could be arranged to provide additional funds during the anticipated surgical procedures. The claimant might normally receive $2500 per month for four months, then $10,000 during the surgery months.
Changes cannot be made once the structured settlement contract is established. Therefore it is crucial to work with professionals who cover every possible angle to ensure Annuitants receive adequate compensation.
Structured settlement annuity payments are also offered to individuals who win jackpot lottery winnings. Annuities paid to lottery winners are usually subject to taxation at both state and federal levels. Annuities paid to injured parties are exempt from federal taxes.
Due to the variety of options available for establishing annuities, it is crucial to work with a well-established structured settlement company that has access to multiple life insurance companies. This ensures Annuitants obtain the best annuity plan to suit their personal needs.
We invite you to learn more about annuity payments in our structured settlement company article library. Here you will find information regarding how annuities work, tips for locating a structured settlement company, and how to sell structured settlement payments to obtain lump sum cash payments.