1. What is the single best thing that a structured settlement has to offer?

A structured settlement offers a guaranteed, secure financial investment that provides an attractive rate of return, free from both federal and state income tax.

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2. What types of claims are best suited for structures?

Actually, the need for structures is driven more by the circumstances of the claimant than the type or value of the claim. As a rule of thumb, any time future cash needs outweigh immediate cash needs, there is a good chance that a structure will be beneficial to the claimant. Some examples might be: loss of income, a need for continuing medical care, or a claimant who is a minor or has minor children in the household.

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3. Is there a minimum claim size?

No. However, most life insurance companies have a minimum premium requirement of $5,000 or more.

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4. What's the best way to find out if a claimant would consider a structure?

Make an offer of a structured settlement. Claimants, or their attorneys, typically are not going to request a structure. In the first place, it is a relatively new concept - less than 30 years old - and many people are not even familiar with structures as a settlement option. There is no cost to obtain a quote or to revise it if in the subsequent discussion, you identify additional needs or concerns.

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5. What needs or concerns should a structure address?

Broadly speaking, every claimant has "immediate" and "future" cash needs.

Immediate needs may include expenses already incurred (such as medical and legal bills) as well as expenses created by other wants or goals (perhaps a new car or a home remodeling project). Immediate needs can be met with the upfront cash portion of the structured settlement, which is very much like a traditional cash settlement.

What makes structures unique, though, is the way in which they also meet future needs. Obviously, these vary greatly with each situation. Again it is helpful to look at two broad categories: ongoing and lump sum payments.

Ongoing payments are regularly scheduled payments designed to meet recurring needs such as to compensate for loss of earning power, or to provide funds to pay for nursing care. These can start immediately and extend for a predetermined length of time (known as period certain) or for the life of the claimant (known as life contingent). They may even be scheduled to begin at some later point, such as when the minor reaches a certain age or a claimant turns 65 (Retirement Plan).

Lump sum payments, on the other hand, are single payments made at specified future dates, usually timed to meet an anticipated need, such as the onset of college. Most structured proposals include a combination of ongoing and lump sum payments.

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6. Could a claimant obtain better results handling his/her own investments?

Possibly, but only with a very disciplined approach, and only if you compare return before commissions and fees, and income taxes (which will take at least $0.15 - more likely $0.28 to $0.31 - out of every $1.00 returned from private investment) depending on tax bracket.

But, the fact of the matter is, the tendency is to spend rather than save. Cash settlements are no exception. One study claims that up to 90% of recipients of substantial sums of money, whether by settlement, sweepstakes or lottery, dissipate the entire lump sum within five years of receipt. A structured settlement avoids that risk entirely.

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7. If I have a claim that may be a candidate for a structure, what should I do?

You may submit a quote on the Forms page of this website or call our toll-free number (800) 328-3862 and discuss it briefly with a team member. We will ask some basic questions about the type of claim and the claimant, as well as your preliminary ideas on the amount you would like to spend. If you would like us to work up a more detailed plan, we will do so immediately, and can usually FAX or EMAIL our recommendation to you before the day is through.

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