Your
Settlement Options
As we work with you
to settle your personal injury claim, two settlement options are
available for your consideration. One option is a lump-sum settlement
where the entire amount is paid to you at the time of settlement. A
second option is a structured settlement where you receive cash at the
time of settlement, plus a series of tax free cash payments made over
time. The amount and frequency of those payments will depend upon your
individual wishes, future needs and the severity of your claim. Claims
professionals, plaintiff attorneys, judges and defense attorneys
advocate the use of structured settlements because they can effectively
meet your needs for security, as well as provide more benefits over time
than a single lump sum payment.
"The life insurance industry is very strong contrasted to other
industries with which it competes. We see basically the life insurance
industry as a "AA" type business. Next to the U.S. government, the life
insurance industry is one of the safest places for people and companies
to put their funds that exists today."
Fitch
[Duff & Phelps] Credit Rating Service
To allow you to make
an informed decision regarding your settlement options, we have
addressed a few commonly asked questions about structured settlements.
What is a Structured
Settlement?
A proven, effective
solution for personal injury claimants and the beneficiaries of a
wrongful death action.
Usually includes
initial up-front cash along with future cash payments designed to
anticipate your needs.
Typically funded
through the purchase of a special life insurance company annuity or
through U.S. Treasury obligations.
Why
Should I Consider A Structured Settlement?
All payments
received by you are income tax free.
You will receive
guaranteed payments at pre-determined times, giving you regular, secure
income.
The payment schedule
can be tailored to meet your individual needs and desires.
When Would I Receive the Payments?
Payments can begin
immediately, or at some specified time, such as when you retire or have
children in college.
Payments can be made
monthly, quarterly or annually. Often, additional lump sum payments are
made at longer intervals, such as every 5 years.
Often, payments are
scheduled for a specific length of time, & in some cases, they may be
made for your lifetime.
Would I Be Better Off with an All Cash Settlement and
Investing it Myself?
You would likely
incur substantial tax liabilities on the income produced by your
personal investments.
Stocks, bonds and
CD's are typically subject to the risk of market fluctuations and
possible loss.
Managing a personal
investment typically involves brokerage fees and expenses that a
structured settlement avoids.
Typically, a
structure provides a rate of return and security that other investments
cannot match.
The Mangelsdorf
Companies, a founding member of the National Structured Settlement Trade
Association, has been helping settle claims through the use of annuities
since 1976. Our years of experience have led to thousands of successful
settlements that pay substantial total benefits and maximize claim
settlement dollars.
