Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary

Index-Linked Structured Settlements for Minors Catch The Eye of New York Judges

by John Darer® CLU ChFC MSSC RSP CLTC

New York judges are approving index-linked structured settlements for minors in an Infant Compromise, as part of a proposed settlement planning allocation to complement fixed rate structured settlements in the current interest rate environment.  What's the attraction? Priced at approximately the rate of a structured settlement with a 2.3% COLA, index-linked structured settlement payment riders on structured settlement annuities, issued by Pacific Life and Annuity in New York and Pacific Life Insurance Company elsewhere, are ideally suited for a plaintiffs with a long time horizon.

Indexed Linked Annuity Payment Adjustment riders are not a cost effective solution for short term structured settlements.

The initial adjustment cap since the product was introduced has been 5%.  That's 5% increase in payments on completion of the first year of payments , but the cost of a 2.3% COLA.  If there was a down market the following year the minor's payments stay the same, averaging out to a 2.5% increase annually over the two years with the exemplar.   If you are concerned about low interest rates and have the time to spread out your payments then an allocation to the index-linked structured settlement is a good alternative, as some New York judges have discovered.

Download Index Linked Structured Annuity Pacific Life brochure

The product can be used for plaintiffs or structured attorney fees.

Structured Settlement With Index-Linked Annuity Payment Adjustments

by John Darer CLU ChFC CSSC RSP CLTC

Structured settlements can include an S&P 500 index-linked annuity adjustment feature, thanks to Pacific Life Insurance Company, which rolled out its rider on April 17, 2014, following its obtaining a favorable IRS Private Letter Ruling. It is now available for structured settlement quotes on both structured settlements and for structured attorney fees. Here is my introductory video which explains the index-linked annuity adjustment rider and its application for settlements in personal injury, medical malpractice, aviation, construction accidents, product liability and other disputes that qualified for damages under IRC 104, and legal fees.

Pacific Life issued structured settlement annuities in New York, through its subsidiary Pacific Life and Annuity Company. The New York company also offers the index linked annuity payment adjustment rider, which bears the acronym ILAPA.

 

<At the time of posting, the company currently holds an A+ (Superior) rating by A.M.Best. For more information, a structured settlement quote, or a discussion of your settlement planning needs please contact John Darer at (203)325-8640 or (888)-325-8640- toll-free. John Darer and 4structures.com LLC are listed as A.M Best Recommended Expert Service Providers.