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FAQ for Claim Professionals
  1. Introduction
  2. What is a Structured Settlement?
  3. Why would a claimant want one?
  4. Why wouldn't they want one?
  5. How can the claimant manage the disadvantages?
  6. Why does my company want me to use them?
  7. Which kinds of cases are good candidates for structures?
  8. Which cases are not?
  9. What about case size?
  10. How do I get started?
  11. What's a typical negotiating scenario?
  12. What if the Claimant says no?
  13. Approved annuity issuers
  14. Why annuities?
  15. Annuity Pricing
  16. Reduced life expectancy discounts
  17. What is an "assignment"?
  18. Structure of the deal
  19. Insurance company ratings
  20. The closing process
  21. What do settlement brokers do?
  22. How are brokers paid?
  23. What if the claimant has their own broker?
Home Page > "How to" For Claims Professionals >ABC's

Which Kinds of Cases are Good Candidates for Structures?

Only cases involving personal physical injury qualify for tax-free future payments. Non-physical torts can be structured but are tax-deferred.

  • Minors and Incompetents The security and favorable economics inherent to structures help protect these most vulnerable of claimants and help settlement fiduciaries meet their fiduciary obligations. Built-in spendthrift provisions help protect recoveries from irresponsible or inexperienced custodians. For those heading to college, structures are an excellent way to fund tuition expenses.

  • Impaired Future Earnings Use a structure to supplement or replace future lost wages.

  • Future Medical Care Establish income to meet expected medical expenses.

  • Retirement Establish or supplement retirement plans on an even more favorable basis than is available through conventional retirement plans. (A plan funded by a structured settlement for personal physical injury is tax-free rather than merely tax-deferred.)