As we actively educate claims professionals about the value of structures for all parties, we at Chronovo often hear many misconceptions about the use and applicability of structures.
Among the most prevalent is the notion that structures are only beneficial to—and create interest with—orphans and minor children. While structures have features that are compelling for these kinds of litigants, many of those features are invaluable to anyone.
After all, who doesn’t want lifetime, tax-free, scheduled payments secured by best-in-class life companies and governmental protections that are immune to market fluctuations with absolutely no ongoing fees or costs? Is there anyone at any age that would not welcome these characteristics? Instead of relying solely on a traditional investment fund (“historical performance does not guarantee future results”), the smart money is on balancing security with growth. Nothing delivers security like a structure. (As we have previously posted, the Top 10 reasons why structures are unique and invaluable is compelling and, structures can provide the security and stability for retirement that pensions once provided.)
Rather than just talk theory, we thought it might be invaluable to show practice—to reveal the age demographics of those who purchase annuities through Chronovo. When reviewing our database of thousands of structures, the percentages reveal an interesting distribution by age:
What does the actual buying behavior tell us? First of all, if there is a “sweet spot” it’s with injured individuals between the ages of 46 and 65 years old who compromise the largest percentage of structures purchased (56%) and the largest percentage of premium funded at (46%). Furthermore, nearly three times as many structures are purchased by individuals over the age of 65 (25%) than under 25 (7%). Overall, 93% of the individuals who benefit from a structured settlement are over 25. Clearly, structures are compelling to everyone, not just orphans and children.
Ultimately, we have found that the biggest impediment to successful structures is in the timing and clarity of their presentation. At Chronovo, our unique business model, tech, and programs provide early, open, and clear explanations of the value of structures for all. Furthermore, we take the work off the claims professionals’ desk and at no cost to the parties to the claim. You can find out more about our revolutionary approach at www.chronovo.com or contact us at 781-336-4680 or info@chronovo.com.
Speaking of myths, the Sphinx’s riddle was a simple one: “What animal walks on four legs in the morning, two legs in the afternoon, and three legs in the evening?” The infamous answer was humankind–crawling as an infant, walking as an adult, and using a cane when elderly.
Chronovo’s question to all claims professionals seeking to offer more value to an injured individual while negotiating a settlement is not a riddle but has the same answer:
Q: When is a structure an unparalleled opportunity for the injured individual’s financial security?
A: Across all the ages and stages of their lives.
