|Why Structured Settlements|
The Who, What, Where & When’s
In simple terms, a structured settlement is a powerful financial tool created exclusively for injured people. You choose a structured settlement instead of taking one lump-sum payment when you receive money from a personal injury lawsuit. Regular payments are then made over a specified period of time to match your future needs and goals. Financial advantages include:
- Guaranteed payments from the annuities purchased to fund your structured settlement
- 100% lifetime exclusion from income, dividend and capital gains taxes
- Customized planning with trained consultants to meet both immediate and future financial obligations
- No risk of losing money on market-vulnerable investments or from poor financial management
- Eligibility maintained for federal and private health care plans
- For more, see The Big Picture
One reason Congress created structured settlements was the concern that injured people who take a lump sum often spend it all before meeting future obligations. Other prominent Americans think it is a good idea as well (see who).
Wide Range of Qualified Cases
Structured settlements apply to a wide variety of injury cases regardless of how much money is involved. In fact, more than half the cases structured by Ringler Associates are for settlements less than $50,000. Consider structured settlements for any personal injury, workers’ compensation or medical malpractice cases involving:
- Long-term medical needs
- Temporary or permanent disabilities
- Minors or the mentally incompetent
- Severe injuries that result in brain damage or shortened life expectancy
- Surviving spouse and/or dependents in a death case
Structured settlements are now increasingly used for cases that involve other types of personal damages as well, including discrimination, wrongful termination, property loss (construction defects), divorce, sexual harassment and environmental harm.
Structured settlements grow your funds through interest-earning annuities purchased from top-rated insurance companies. The money is then distributed in whatever fashion works best for you: future lump sums on specified dates; over a set period; over a lifetime; monthly, quarterly, semi-annually, annually; in level or increasing payments; or in some combination of these options.
Most people start by guaranteeing critical obligations first, including replacement or supplemental income, tuition payments, mortgage payments, retirement income and ongoing medical expenses. Then other needs are considered, like a down payment on a new home or car, remodeling projects, attorney fees, major tax bills, vacation planning, etc. (See the Financial Strategies Pyramid.)
Everyone’s situation is different, which is why it is so important to work with professionals who ONLY specialize in designing structured settlements. So gather up your questions and contact a Ringler® consultant now for answers on how we can help you create a safe, secure future for yourself and your family.