Why Structured Settlements?

MAXIMIZES SPENDING POWER OF A LIMITED RESOURCE – CAPITAL:  History proves that using a structured settlement as a negotiating tool often results in a better claim settlement for all parties.  Due to policy limits, financial constraints, or basic differences in determining the value of a claim, the defendant may not be able to offer an attractive cash settlement. Structures allow benefits to grow over time to an enticing aggregate amount.

BRIDGES GAP BETWEEN DEMAND AND AUTHORITY:  If the two sides are kilometers apart on the dollar value of a claim, a structured settlement may shorten the distance by offering the demanded amount over time – with a cost closer to the offered amount.

EFFECTIVE NEGOTIATING TOOL:  Many recipients of personal injury settlements need access to their settlement funds on a monthly basis for living expenses such as food, clothing, medical expenses, transportation, utilities and housing. When a settlement offer is presented in this way, today’s dollar amount – often referred to as today’s present value or the cost of the structure benefits – becomes less important.

RELEASES DEFENDANT FROM FUTURE LIABILITY:  With the proper documents and language, the defendant is able to obtain a full and final release of liability while still stretching the payments out over time. A properly executed assignment of the liability to a third party is required. Your Structured Settlement Consultant provides sample documentation and language to achieve this release.

RELIEVES DEFENDANT OF FUTURE PAYMENT RESPONSIBILITY:  The defendant is not responsible for delivering future payments so there is no future resource drain – no need to set aside reserves of capital (financial or human). A properly executed assignment of the liability to a third party is required. Your Structured Settlement Consultant provides sample documentation and language to transfer this responsibility.

REDUCES TRIAL RISK:  The flexibility of the structured settlement enhances the odds of success at mediation, avoiding court costs and the risk of a plaintiff verdict.

CREATES GOODWILL AND ENHANCES PUBLIC IMAGE:  It is the right thing to do for many injured people or their survivors. The unfortunate reality is that many plaintiffs/claimants who receive cash settlements dissipate funds meant to last a lifetime within a few short years.

Rather than having an unhappy and financially distraught claimant, the flexibility of structured settlements creates virtually unlimited opportunity to tailor a settlement to each claimant’s specific needs. The structure might be simple or complex and is limited only by the creativity of the parties involved and the availability of products in the structured settlement annuity market.