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What is a structured settlement?

What is a structured settlement?

A structured settlement is a stream of customized periodic and lump sum payments funded by annuities with a fixed rate of return funded by highly rated Life insurance companies. Now that the technical terms are out of the way, a structured settlement is a financial vehicle built to fit claimants’ needs both now, and in the future.

If a claimant is physically injured, the payments are tax-free.  For a claimant, a structured settlement presents financial security in a time of uncertainty; due to the fact structured settlements are protected and governed by Federal legislation and IRS regulations.

 Who should use Structured Settlements?

* Those who experience a loss amount greater than $10,000 and there is an opportunity to defer some or all of the payments for 3 or more years
* A minor child with a loss of $5,000 or more
* An injured party who desires to receive a steady stream of income over a longer period of time
* Injured people who have difficulty managing large sums of money
* Injured parties who want to shield settlement monies from future taxation on earnings made from personal investments with settlement funds
* Severely injured people who will require future care

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