by Structured Settlement Watchdog
Aren't scientists supposed to be such precise people?. Empirical evidence is defined as the data and information obtained by creating assumptions over a specific topic, observing the collected data and experimenting to prove or disprove a theory. Instead Jacob Irwin's financial journey is full of bumps and bruises from the Structured Settlement "Crockchain".
Jacob A Irwin self describes as the owner and operator of My Personal Finance Journey. He started that blog in January of 2010. Irwin states that he has a masters degree from a university in Virginia and since 2014 has been working in bio pharmaceutical development in Colorado.
Irwin has been sucked into the "awarded a structured settlement" vortex, a fundamental failure. Irwin then expands upon and compounds this fundamental failure by demonstrating that he has little understanding about structured settlements.
Jacob Irwin : " Structured settlements can be issued two different ways. The first type of annuity is a traditional method where yearly or monthly installments are paid to the claimant directly by the defendant that lost the lawsuit case. Usually, the monthly payment is determined by the total amount due, divided by the agreed-upon number of years of payments plus interest".
- Structured settlements come about as the result of an agreement not an award. Robert Kraft, Esq. of Kraft Associates, a Dallas Texas personal injury law firm says it succinctly on his blog PISSD:
"It’s an agreement
You may win a case by settling it, but a structured settlement can’t be forced upon you. Structured settlements can only be agreed upon by the parties in writing, usually in the form of a release of claims. No judge can order a structured settlement. They might only be called upon to approve it".
- The amounts of payments are determined by the rates set by the actuaries of the life insurance companies that issue structured settlement annuities. Licensed and appointed agents of said life insurance companies enter parameters into quoting software application loaded with the rates of the companies and the software application produces a quote.
- If one were to calculate monthly payments using the flawed methodology that Jacob Irwin propounds, why would one divide by the number of years instead of months?
Jacob Irwin "The other available structured settlement is an annuity that can be purchased through annuity or life insurance companies. Typically, the court orders that the defendant will need to purchase the annuity and redirect the monthly cash payouts to the beneficiary – the claimant in the case. These types of annuities are purchased for a reduced rate. The defendant provides a lump sum to the annuity company in an amount large enough to start paying out on the policy immediately".
- The Courts role is to approve a proposed settlement. The approval is in the form of an Order approving the proposed settlement that the parties have agreed to. A petition is submitted for the approval of the judge. In New York it is known as an Infant Compromise Order. Emphasis on the word "compromise" for good reason. A settlement is a compromise, agreement or "meeting of the minds"
- Generally the Defendant does not "purchase the annuity and redirect payments." A structured settlement annuity is typically purchased by a qualified assignment company. See how structured settlements work.
Jacob Irwin "Additionally, some annuities are automatically transferred to the heirs of the claimant in the event that they die before the total amount is paid off".
Commentary: Structured settlement annuities are never transferred to the heir of the claimant in the event that claimant dies before the total amount is paid off. There is absolutely no change of ownership. Assuming the decedent had named a beneficiary or beneficiaries, payments will be paid, when due, directly to the named beneficiary or beneficiaries. Beneficiaries under an annuity or life insurance policy may differ from the distributions under the decedent's will, or the laws of intestate succession. in your state (what applies if you die without a will)
Jacob Irwin "While there are certain advantages for obtaining a structured settlement annuity after winning a lawsuit or settling out of court, there are disadvantages too. The structured settlement can offer a high level of financial security and a continuous steady income for years"
Commentary: A high level of financial security and continuous steady income is a disadvantage?.