Posted: Mon Aug 18, 2008 3:22 pm Post subject: Structured settlement
I was in a wreck in Dec. 2007. The insurance company just made offer of $600,000. My lawyer said the adjuster wanted to know if I wanted to do a structured settlement. I really don't want to do that. Does it make a difference in offer amount if I didn't do structured settlement? _________________ Register Now to have your Insurance queries solved.
Probably so. Kind of like winning the lottery and taking a lump sum, you usually get about 60% of the actual prize. The best thing you can do is get your lawyer to fight for you and get the maximum amount, regardless of how it is paid out. After all, they will get a share as well. _________________ Visit The Insurance Files for information on auto, health, life, homeowners and more!
Click here for a free health insurance quote!
No the payment is _not_ any less. Something that always concerns me... your going to pay your attorney $200,000 and he/she did not explain everything to you?
Structured settlements vary slightly but basically it means the insurance company invests all or some (usually a person elects "some") of the settlement amount under the person's name. This works just like any other investment and payments are made to the person. As it's an investment, the amount paid out in the long run is much more then the amount put in. Look at it this way... what would you do with $400,000 or so? If you put it into a checking account you'd be loosing a _lot_ of potential interest. The insurance company contracts with an investment firm who can invest it for you. The insurance company gets a small amount back from the investment firm so they same a little money. From what I have heard, the accounts used have a pretty good rate of return. But again, this is what you need to discuss with the adjuster and/or your attorney. Attorneys usually want their payment up front but again, you can elect to take some of the money now and place a certain amount in the structured settlement.
Basically, unless you were going to spend all of the money very quickly, it needs to be invested. The structured settlement can do this for you automatically. You do _not_ get paid any less and you can still elect to receive part of the settlement up front.
The great thing about them is, of course you end of getting more money in the long run, but would with any safe investment...but you can structure them to your own needs...I settled a lot of claims using them (back when I worked a lot of bi's)...and could for example set them up to pay twice a year when college tuition was due, or other ways..you can pretty much set them up in any way you want them to pay out...they are very flexible. unlike some investment decisions,. _________________ Have you been helped by a poster? Do you want to show your appreciation? YOU CAN !! Just simply click on the donate button and send them some coin!
Structured settlement looks like a wonderful option.From the discussion which is going on it seems the amount we will be getting will be far more than if we accept a one time payment.As Lori has rightly pointed out ,you can make that kind of money by investing yourself.But structured settlements seem to take the burden from the claimant of investing the claimed money,which may be a good option for people not well versed with investments and markets
