BEST Structured Settlements Broker Tampa
What is a Structured Settlement?
A structured settlement is a mechanism that allows the injured party the ability to defer a portion (or all) of their settlement, receiving the proceeds when desired as opposed to all at once.
For example, you may take part of your settlement as cash to cover immediate expenses.
The remainder of your settlement recovery can then be used to purchase an annuity through a highly-rated life insurance company, which then provides you with a series of guaranteed, tax-free payments to meet your future needs.
You can elect to receive a structured settlement if you are settling a personal injury or wrongful death lawsuit.
The decision to structure must be made before accepting the settlement proceeds in order to ensure tax- free benefits.
You cannot accept the proceeds in cash now, and then later elect to create a structured settlement.
Different Forms of Structured Settlements Tampa Florida
Structured Settlements Tampa Florida can take one of several different forms.
You could be paid in annual installments over a number of years, or you could receive periodic lump sums every few years. Your personal injury attorney can work in conjunction with your financial advisor to determine the best possible settlement schedule for you.
3 Benefits of a Structured Settlement
Structured settlements may offer some victims certain advantages to receiving a large lump sum of money. The benefits may include:
- Little or no taxes- A properly constructed structured settlement could minimize your tax obligations as a result of receiving the settlement. Depending on your personal circumstances, the money might even be tax free. Your attorney along with your accountant will be able to determine the manner that best fits your situation.
- Financial security- Many recipients of large settlements are tempted to spend the money right away, leaving themselves unable to cover the inevitable future expenses related to their injury. Injury victims with long-term needs could benefit from periodic lump sum payments to supply themselves with necessary medical equipment.
- Special needs trust- If you become severely disabled as a result of the accident, your attorney may suggest that you establish a special needs trust. A disabilities financial planner can work with you and your attorney to determine if this option is best for you.
2 Disadvantages of a Structured Settlement
Not everyone will benefit from the same type of settlement schedule. The following are possible disadvantages depending on your personal situation:
- Financial need- Sometimes a victim may have an extreme financial need which necessitates a lump sum payment. However, accepting a lump sum payment may result in an overall smaller award. Your attorney can advise you on this situation.
- Good investment- A financially savvy accident victim may be able to invest the lump sum amount and reap much higher dividends than the annuities used in a structured settlement- ultimately collecting a far greater amount than the original settlement.
What is A structured settlement broker
A structured settlement broker is an independent professional who will obtain quotes from several life insurance companies.
The quotes are based on the totality of the medical conditions affecting the individual, not just those flowing from the alleged medical malpractice.
During the course of negotiations, the structured settlement broker will provide the parties with illustrations showing the cost to purchase the structure, the estimated payout over the lifetime of the individual, and the guaranteed payout.
Life insurance companies compete for this business, both in financial return and in providing an estimated “rated age” for the individual. For example, in an extreme case, an 8-year-old child can be given the life expectancy of a 75-year-old. This means that the insurer will make higher payments because it calculates the total life expectancy to be relatively short. (Payments will nevertheless continue for the life of the individual.)
Whether the structured settlement broker appears as a consultant to the defendant or to the plaintiff, he or she should be given access to all current medical underwriting information so the most favorable rated age can be obtained. It also is important that the parties, particularly the structured settlement broker, understand the injured person’s reasonable life care needs.
For example, if he or she requires 40 hours of attendant care per week for 10 years, and then 60 hours per week thereafter for life, the periodic payments can be structured to meet these needs.
Mintco Financial Structured Settlements Florida
Plaintiff and defense attorneys, judges and claims professionals are advocating the use of structured settlements in complex cases. Structured settlement payments are tax-free and help claimants receive income they can count on over time.
Payments from structured settlements provide for a surviving spouse, sending children to college, paying for future medical expenses or funding retirement.
To fund future financial needs for the people we serve, Mintco Financial offers insurance, annuity and money management products.
We use highly rated life insurance companies and U.S. Government securities as funding vehicles for structured settlement annuities as specified in Internal Revenue Code 104 (a) 1 and 2 and Revenue Ruling 79-220 which offer several advantages:
- Life insurance companies that issue annuities are closely monitored by state regulators;
- Annuities have a low-risk of insolvency; and
- Annuities have an excellent history of meeting long-term payment obligations.
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