Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

The Personal Injury Victim's Dilemma | Managing Expectations of Others

by John Darer CLU ChFC MSSC CeFT RSP CLTC

It's Your Settlement and Everyone Wants Your Money Now

Personal injury victims may face the post settlement dilemma of "It's Your Settlement and Everyone Wants Your Money Now". It may feel isolating at times. Working with a settlement expert who is also a Certified Financial Transitionist can be helpful to help you manage expectations of family, friends and others and to help sort through, organize, prioritize and help make it easier to process your options. John Darer from 4structures.com LLC, a Settlement planning expert and Certified Financial Transitionist, covers the issues in this introductory video.

What is a Certified Financial Transitionist (CeFT)?

CeFT holders are experienced financial professionals who understand how life transitions change financial situations.  It is a level up designation in that CeFT designees must also have earned and maintain at least one other highly respected professional designation such as the CFP, CIMA, ChFC, CDFA, CPWA, CPA/PFS, or CFA. 

CeFTs have the comprehensive knowledge and skills necessary to guide clients through a variety of transitions. When they meet with clients, CeFT holders show empathy and know how to listen carefully to their unique needs and emotions so they can make appropriate recommendations.

During their 12-month training program through the Financial Transitionist Institute,a division of the Sudden Money Institute, CeFTs become well-versed in the four stages of transition and use them and different tools to guide their clients through a successful transition during the uncertain and often chaotic times they’re facing. CeFT's have ongoing education requirements to maintain their skills and fluency in the subject matter. 

With their support, you’ll be able to make smart financial decisions that lead to a happy future and help you avoid money problems down the road. Unlike a traditional financial advisor, a CeFT will understand the emotional side of your situation and keep it top of mind when they make recommendations and guide you through your transition. 

They can prevent you from making emotional, rather than logical financial choices that take a toll on your finances. Whether you’re anticipating a life transition or found yourself facing one unexpectedly, a CeFT can be a valuable resource and thinking partner. 

Sources:  Sudden Money Institute,  Wealthtender.com

Video copyright:  4structures.com LLC

Last updated May 14, 2024

 

John Darer Reviews Daily Rate Pricing for Structured Settlement Annuities

by John Darer® CLU ChFC MSSC RSP CLTC

Competitive Structured Settlement Pricing

When structured settlement consultants tell you that they "have been working very hard to squeeze the most out of the structured settlement annuity providers on your behalf", this DOESN'T involve any "wiseguys", water boarding in an undisclosed location, or any form of medieval torture.

Structured settlement daily rates are today's specials

What Are Book Rates for Structured Settlement Annuities?

Most structured settlement annuity pricing is initially done on using so-called book rates*.  Book refers to rate book,  a term from a bygone era when structured settlement consultants actually carried rate books bearing the costs per $1.000 of each benefit and used calculators to price a structured settlement annuity. Insurance companies are subject to regulatory requirements designed to help assure that the insurers have adequate capital and reserves to meet their liabilities.  There are also individual company business requirements that come into play.

What Are Daily Rates for Structured Settlement Annuities?

Bonds are an important asset carried by structured annuity issuing life insurance companies to back up their liabilities. On any given trading day, it is possible that bond rates in the open market may be more favorable than the investments (or investment assumptions) used to set the "book rates" set by the insurance company. If such favorable investments are available, the insurance company may be able to buy an asset to back up a particular liability at a more favorable rate and be willing to extend a more favorable daily rate which ultimately helps to achieve a more favorable result for our clients. Furthermore,  it is possible that a company with a large amount of surplus reserves may be inclined to extend a daily rate, for competitive reasons.

What Are Structured Settlement Daily Rates [Expanded Response Bullet points]

1. The insurance companies that issue structured settlement annuities are legal reserve life insurance companies/ Legal reserve life insurance companies are required to submit annual statements to the insurance departments of each state in which they are licensed to do business. The format and contents of the forms used are prescribed by the State Insurance Commissioners. They give a detailed report of an insurance company's financial status, an important factor in evaluating the company's solvency and compliance with the insurance laws. Every few years, depending on a company's state law of domicile,  companies operating in multiple states undergo a more detailed home office examination of its financial position. This audit is conducted by a team of State Insurance Department Examiners representing the various areas in which the company is licensed to do business. Companies licensed in a single state are subject only to an annual home office examination by their State Insurance Department.
2. Surplus are those assets of the insurance company that are not reserves, and are basically "stand by" assets that are available to back any future policies that the company might underwrite. Another way to look at surplus is that it represents the capacity of the insurance company to take on new business. The permitted asset rules typically do not apply to surplus, meaning that the surplus can be invested in any investment that is otherwise legal and prudent for the insurance company to invest in.
3. Daily rates are usually required over certain premium thresholds due to the potential impact on surplus reserves and regulatory asset/liability matching requirements.  Among other reasons, diversification may be prudent to structure under these thresholds to achieve better aggregate pricing on a given case.
4. Depending on the company daily rates may be available even on the smaller cases.
5. One way of looking at structured settlement daily rates is that they're like daily specials at a restaurant.  Just like daily specials at your favorite restaurant can vary from day to day, so can daily rates for structured settlement annuities.

Structured Settlement "Blue Plate Special"

Generally daily rate come out in the morning. But like the blue plate special that attracts scores of tighter budget or fiscally conservative diners to lower priced meals within a restricted time periods, bond markets are fluid and it may be possible to get a better rate at different times of day. It's always worth a try.

Are Daily Structured Settlement Rates Always Better Than Structured Settlement Annuity Book Rates?

No,  sometimes the structured settlement rates are worse on a daily rate basis than the book rate.  Sometimes the daily rates are better only for specific types of cash flows.

Get Structured Settlement Quotes Now| Structured Settlements Quotes 2023 (4structures.com)

Last updated October 25, 2023

 

 

4structures.com®, LLC Named To CT Law Tribune Best of Connecticut

by John Darer® CLU ChFC MSSC RSP CLTC

Connecticut Law Tribune's readers have named 4structures.com®, LLC to its "Best of Connecticut" list for 2011. Each year the Connecticut Law Tribune surveys Connecticut's lawyers and law firms for their opinions about vendors who provide products and support services to the Connecticut legal community,

This is the fifth time that 4structures.com®, LLC has achieved this status. 4structures thanks the readers of the Connecticut Law Tribune. It is extremely gratifying to receive the longstanding recognition for the efforts we put in for our structured settlement and settlement planning clients who are domiciled or have legal cases in Connecticut.

 

4structures.com LLC