Structured settlements benefit injured individuals. You can:
TRANSFORM YOUR SETTLEMENT, JUDGMENT OR AWARD INTO A CUSTOMIZED FINANCIAL PLAN FOR A LIFETIME OF INCOME
According to studies, most claimants exhaust the benefits that are meant to last a lifetime (see) and often cannot pay for necessary medical costs (see). The structured settlement alternative enables payouts at any time and for the exact purpose you intend (see).
CHART YOUR FUTURE EXPENSES WITH CERTAINTY
Your structured settlement has multiple layers of protection. The annuity contracts that fund the structured settlements are issued by highly rated, well-established life insurance companies (see). Structures also afford you protection from premature dissipation, misuse, bad investments, market fluctuations, recessions and product risk (see).
PROTECT YOUR NEEDS-BASED ENTITLEMENT INCOME ELIGIBILITY
Lump sum settlements are classified as assets, which means that they negatively impact your eligibility for needs-based income entitlements like Medicaid, AFDC and SSI. Structured settlements, on the other hand, do not carry this risk, especially when combined with special-needs trusts (see).
PROTECT YOURSELF FROM CREDITORS
Because it is defined as an “assignment” rather than “asset,” your structured settlement annuity avoids probate challenges. It also protects your settlement proceeds from creditors arising from divorce and bankruptcy (see).
TURN THE TAX CODE INTO CASH
The tax-free benefit created by Sec. 104(a)(2) gives structured settlements great advantages. Let’s assume a 2% management fee in a trust or with an investor and a 28% tax bracket; a lump sum investment would have to outperform an annuity by 30% just to draw even. In addition, you can replace the burden of management costs and concerns with a continual stream of income, regardless of stock market conditions, interest rates and bond performance. In fact, the higher the tax bracket, the higher the hurdle and the greater the value of the exemption for other tax issues, including the Alternative Minimum Tax (see).
Chronovo provides settlement proposals that are customized to the individual needs of you and your family. We analyze future medical expenses and income needs, college funding, mortgage payments and retirement planning. We also make sure your needs-based entitlement income is protected by the settlement. Structured settlements are guaranteed and tax-free. They can provide a flexible financial plan to fit all of your needs.
Our Chronographs help turn abstract math into intuitive color graphics so you can better understand the offers presented during negotiations (i.e.: blue for guaranteed money, and orange for the life contingent payments). You will see the power of guaranteed, tax-free annuities and how they can provide a lifetime financial plan. You’ll receive full descriptions and ratings on each life carrier being quoted, as well as a full analysis of Guaranteed Structures vs. Market Volatility to help explain the risks of taking an all-cash settlement.
Chronovo gives you access to our team of top-notch, multidisciplinary experts, including counsels, CMS compliance professionals, claims handling professionals, certified financial planners, economists, professors and settlement and structured annuity consultants. Their assistance is free of charge. We stand ready to help you maximize your plan for ongoing financial freedom and achieve better outcomes.
Claimant/Plaintiff Settlement Checklist
Chronovo Settlement Checklists are developed to inform and enrich the process for each party in the settlement. Make sure to review yours carefully.
Do you have a plan to ensure that money from your settlement lasts as long as you want and need it? Do you know how a structured settlement provides scheduled income to you for your lifetime without any extra costs or taxes of any kind?
Have you considered using your settlement proceeds to fund a college plan or a retirement plan? Do you know how a structured settlement can enable you to schedule and ensure that all such funds are available?
Have you compared the tax-exempt, cost-free performance of a structured settlement with the risk-based approach of a typical investment plan? Do you know that Chronovo can provide a real-time comparison for the claims professional on your case in minutes?
If you count on any needs-based benefits like SSI, Medicaid, or AFDC or similar programs, have you considered settlement options that will not impact those benefits? Do you know that a structured settlement will likely entirely eliminate that concern?
Do you have any challenges with creditors from bankruptcy, divorce, or other proceedings? If so, how will you safeguard your settlement money from being claimed by others?
If you are responsible for children, how are you making sure that the proceeds of the settlement are spent appropriately on their care or that your cash is scheduled to be there for them when you want it to be?
Chronovo’s structured settlements enhance your financial security. Contact us for more information.