Injury Settlement Experts in Seattle and Buffalo Answer Frequently Asked Questions

At Settlement Professionals, Incorporated, we know how confusing the decision making process can be in choosing between structured settlements and other settlement options. We have compiled the following list of questions that we frequently encounter regarding settlements and the settlement planning process. If you have additional questions, we invite you to contact Settlement Professionals, Incorporated to schedule a consultation with our injury settlement professionals based in Seattle and Buffalo. We look forward to helping you make confident decisions to protect your settlement from dissolution.

What Is a Structured Settlement?
What Are the Benefits of Structured Settlements?
Choosing a Structured Settlement – Questions to Ask
What should I do if I am in the process of settling a personal injury case?
How do I know whether or not a structured settlement is suitable for me?
Why should I retain a settlement planning specialist?
What distinguishes Settlement Professionals, Incorporated from other settlement broker firms?
How much does it cost to retain my own structured settlement planner?
What is constructive receipt?
What is medical underwriting?
How does medical underwriting work?
How does medical underwriting benefit a plaintiff?

What should I do if I am in the process of settling a personal injury case?

As with any major financial decision, it is important to make sure you are working with a professional who has your best interests at heart. Therefore, before accepting a structured settlement offer from the defense (or from a broker loyal to the defense), make sure you consult a plaintiff-loyal settlement planner to help you evaluate the pros and cons of a structured settlement given your particular situation.

If you are in the process of creating a personal injury settlement plan, our professionals, based in Seattle and Buffalo, can protect you and look out for your best interests. Anthony Alfieri and Paul Isaac will help you survey and understand the annuity marketplace and obtain the best possible annuity rates with the highest-rated companies. Contact our firm today to schedule a consultation.

How do I know whether or not a structured settlement is suitable for me?

Structured settlements are not suitable for everyone. It is only through careful evaluation and proper planning that you can determine if a structured settlement is suitable for your situation. There are many factors that go into determining the suitability of a structured settlement, including, but not limited to, your:

Financial Situation

Your indebtedness (credit cards, medical expenses), settlement amount, daily, weekly, and monthly expenses, risk tolerances, need for security, money management experiences, and other income resources are factors in making a settlement plan. If you are an individual who has a need for reliable, guaranteed income, then you are most likely suitable for a structured settlement. If you are a conservative investor with a goal of having additional income to improve your standard of living or build your retirement fund, a structured settlement is also suitable for you. On the other hand, if you have no immediate income needs or long-term financial goals, then a structured settlement may not be the best option for you from a financial perspective.

Personality Type and Expectations

A person’s personality type and expectations are key components for a successful structured settlement. We advise clients to be aware that structured settlements are not designed to make plaintiffs rich; rather, structured settlements are designed to provide long-term financial security. We also warn clients that the settlement may not last forever, since, after a client pays off his or her debt, there may not be money left to structure.

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Why should I retain a plaintiff-loyal settlement planning specialist?

It is imperative that you retain a plaintiff-loyal settlement planning specialist (not just a broker who works for plaintiffs) in order to ensure that the defense broker uses the Approved Life list to find the best available rates. Moreover, having a settlement broker on your side balances your power in the negotiations and ensures that you will have access to accurate information about your settlement options.

Attorneys representing clients also benefit greatly from hiring a plaintiff-loyal settlement planner, since doing so reduces attorneys’ liability and fulfills the need to inform clients of their options during the settlement process.

What distinguishes Settlement Professionals, Incorporated from other settlement broker firms?

At Settlement Professionals, Incorporated, our brokers work exclusively on the plaintiff’s side. Over the years, we have developed and refined negotiation tactics that help our clients gain an edge over the defense during the financial aspects of the injury settlement. We assist individuals in Seattle, Buffalo, and throughout the nation with planning and finalizing their settlements. Our clients can rest assured that all potential issues are being addressed.

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How much does it cost to retain my own structured settlement planner?

There is no cost for retaining our structured settlement brokers. Regardless of whether you structure your settlement, there should not be any out-of-pocket fees or expenses for consulting with or retaining your own structured settlement planner. Instead, settlement brokers are paid by the annuity company that funds the settlement. In this arrangement, structured settlements are funded with life annuities, which are insurance products. The pricing of the structured annuity includes a commission structure, which is 4 percent of the premium placed with the annuity company. Out of its own funds, the annuity company will advance this 4 percent commission to the broker(s) handling the structured settlement and hope that the investment margins are sufficient to recover the commission advances. Even if the annuity company’s margins are less than anticipated, your structured settlement payments will remain the same.

What is Constructive Receipt?

Under the doctrine of Constructive Receipt, an individual’s income can be taxed before he or she actually receives said income. This doctrine is based, in part, on the premise that, if an individual has access to the settlement (for example, by simply asking for it), then, whether or not he or she chooses to ask for it, for tax purposes, he or she does possess the income. The Constructive Receipt doctrine only affects a plaintiff’s ability to obtain a tax-exempt structured settlement annuity as part of his or her settlement plan. Plaintiffs who choose other financial vehicles, investments, or strategies need not be concerned with Constructive Receipt, since all of those other options generate taxable income.

There are limitations and restrictions, as well as many “myths,” about the doctrine of Constructive Receipt and the settlements to which it applies. To understand more fully how this doctrine may affect your settlement and injury settlement plan, contact Settlement Professionals, Incorporated in Buffalo or Seattle.

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What is medical underwriting?

A person’s chronological age determines his or her average life expectancy. However, certain events (car accidents), activities (smoking or drinking), and health conditions (high blood pressure or diabetes) can shorten a person’s life expectancy. Medical underwriting (MU) is the process used for assessing whether a plaintiff’s life expectancy is shorter than average. This information can be used to determine a settlement amount and, in some instances, how the settlement will be structured.

How does medical underwriting work?

The medical underwriting process begins with the submission of the plaintiff’s medical records for review by each life insurance company involved with the settlement. Each annuity company will use the information in these records to assign to the plaintiff what is called an “age up-rate” or “rated age,” which is used instead of his or her chronological age for pricing a lifetime structured settlement annuity. The use of a rated age may increase the size of the settlement a plaintiff may receive since, the shorter the life expectancy, the less money the annuity company anticipates paying out over a plaintiff’s lifetime.

How does medical underwriting benefit a plaintiff?

Medical underwriting provides several benefits for plaintiffs. The MU process:

Takes the frailties of a plaintiff into account in pricing his or her lifetime structured settlement annuity.
Allows the plaintiff to hedge against longevity by creating guaranteed income that cannot be outlived.
Can increase the monthly benefit, if the cost of the annuity remains fixed.
Can lower the cost to guarantee a lifetime of income, if the monthly benefit remains fixed.

Contact Settlement Professionals, Incorporated

If you are in the process of dealing with a personal injury settlement, our brokers in Seattle and Buffalo can help. We provide a range of services for clients across the nation to help them make fully informed decisions with confidence. To learn more about our services, contact Settlement Professionals, Incorporated today. We serve clients throughout the country.

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