by John Darer CLU ChFC MSSC CeFT RSP CLTC Structured Settlement Expert
Comprehensive Settlement Planning Services for Injured Persons & Law Firms (4structures.com)
Settlement Experts and Services for Defendants, Lawyers and Claims Pros (4structures.com)
New York Structured Settlements Experts | Settlement Consulting (4structures.com)
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
John Darer reviews what he sees
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
Settlement agreements are contracts that obligate payment be made on a certain date. In most cases that obligation is shifted to a qualified assignment company, which purchases an annuity to fund that periodicpayment obligation to payment on a certain date. But what if it comes in early?
Avoid the agita! of payments being deposited in your account, arriving before the end of the year, in the end of the year rush, instead of after January 1.
You may also want to consider inserting language in the settlement documents that addresss when the payment date is not a business day (i.e. if the payment date is on a holiday or a weekend) that payments will be made on the next business day.
Be mindful that where January 1st (New Year's Day) comes on Monday, as it did in 2024, the preceding days are a weekend and the week before is a short week (with Christmas also on a Monday) with many on vacation and the Friday before January 1st is a half day for many, day that insurers or other payment providers may release payments early in an effort to meet their conatrctual obligations.
Structured Attorney Fees and Attorney Fee Deferral Experts | 4structures.com LLC
Last updated January 12, 2024
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
One of the most positive structured settlement product developments of a record breaking 2023 was the introduction of Prudential Income Advantage, an index linked structured settlement annuity.
Prudential Income Advantage is the third index linked structured settlement annuity currently on the market, following offerings by Pacific Life in 2014 and Independent Life in 2020. The Prudential Insurance Company of America, founded in 1875 and based in Newark New Jersey, is one is one of the oldest and largest life insurance companies insurance companies in America offers a fully domestic solution.
This is great news for structured settlement consumers and beneficiaries, which include personal injury victims, wrongful death survivors, personal injury attorneys seeking structured attorney fees. Allocating to an Index linked structured settlement offers growth potential, downside protection and tax benefits.
1. PLR 109798-23 issued to Prudential's qualified assignment company
What is a Qualified Assignment?
2. PLR 109799-23
Download PLR_for_PICA_-_REDACTED_for_public_release_(00406257)[1]
Following is a link to the brochure for Prudential Income Advantage.
Download Prudential Income Advantage Index Structured Settlement Annuity Brochure
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
A structured settlement is a financial solution that addresses what most people in America worry about the most. Structured settlements should always be considered in the settlement planning mix for this reason.
"You can do it in the mix, in the mix, in the mix...." -parody of old school hip hop classic Last Night a DJ Saved My Life, by Indeep (1982)
Because Certain Sells® is a trademark of 4structures.com LLC (USPTO Reg 6237309)
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
Pacific Life and Prudential, leading life insurance companies that issue structured settlement annuities, have been named among the World's Most Ethical Companies for 2023. For Pacific Life the Ethisphere recognition is for the 6th time, while for Prudential it is for the 9th time. Both Pacific and Prudential have been in business since the 19th Century.
In 2006, Ethisphere launched the World’s Most Ethical Companies® recognition program to measure and showcase the superior achievements of organizations that are committed to doing business with ethics and integrity. The process is rigorous and objective. It includes a 200-point assessment, documentation review, and research into an organization’s reputation and ethical practices. The process itself provides a way for organizations to assess their own programs against leading practices. World’s Most Ethical Companies honorees also enjoy recognition of their exceptional ethics and compliance programs. Ethisphere also broadly shares the World’s Most Ethical Companies data to help all organizations understand and improve programs
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
· This represents an increase of $939,304,942 or +81.6% Q4 YOY
· YTD this represents an increase of $1,807,552,714 or +42.7%
· This represents an increase of 1,526 cases or +34.3% Q4 YOY
· YTD this represents an increase of 1,843 cases or +9.5%
· This represents an increase of $91,139 per case or +35.3% Q4 YOY
· YTD this represents an increase of $65,961 per case or +30.4%
Despite a return to structured settlement production highwater mark to the north of $6B in 2018 and the all-time record in 2019, the rapid deceleration in interest rates in the early part of the Covid-19 pandemic, together with court closures that constricted the supply line of cases coming up for trial, played a role in the drop in structured settlement industry wide production.
Last updated February 19, 2023
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
The American Association of Settlement Consultants (AASC) announced November 10, 2022, that members of the House Ways and Means Committee, led by Lloyd Smucker of Pennsylvania and Gregory F. Murphy of North Carolina have formally r equested a government-funded study assessing the long-term economic and lifestyle impact of premature lump-sum settlement dissipation.
The task will be assigned to Honorable Gene Dodaro, the Comptroller General of the United States and head of the Government Accountability Office (GAO), who will assess the feasibility of conducting the study and respond accordingly.
In their request, the Congressmen strongly stated the need for authoritative data on the troubling incidence of premature dissipation associated with lump-sum cash settlements, “For low-income Americans and or disabled individuals, settlement income is depended upon to cover essential costs such as mortgage payments, accident-related medical expenses, and other basic living expenses."
"We are deeply concerned by historical data showing legal settlements made in the form of lump sum payments to injured parties and their families quickly dissipate, leaving victims without income when they need it most.” they said, according to the AASC release,
What is the Incidence and Impact of Premature Distribution on Injured Parties?
In addition to analyzing the incidence and impact of premature dissipation on injured parties, the request also asks that the study assess the long-term impact on mortgage foreclosures, medical debt, and other personal debt. With the availability of data that paints a complete picture of premature dissipation’s negative impact, injured parties will be able to make a more educated decision and fully assess the risk associated with cash versus annuitization of payments.
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
Now is the time to make good use of stuctured settlements and build enduring guaranteeed income streams
Compelling yields in Excess of 5% are possible on intermediate and long term cash flows. On November 1, 2022 for example, I locked-in a 10 year certain plan with a 5.7% Internal Rate of Return with a daily rate from United States Life Insurance Company in the City of New York.
So what does 5.7% tax-free mean?
Taxable Equivalent Yields at Different Hypothetical Tax Rates
15% 6.705%
18% 6.951%
28% 7.916%
31% 8.261%
33% 8.507%
40% 9.500%
50% 11.400%
See expanded taxable equivalent yield chart
What about investing in the Stock Market?
Well you're not going to put all your eggs in one basket are you? But let's say you did and if you had the fortitude to stay in the S&P 500 from January 3, 2000 to December 31, 2021 you would have averaged 9.52%.
However, if you missed just the 20 biggest trading days in the S&P 500 from January 3, 2002 to December 31, 2021 you would have averaged only 2.6%. If you missed the 30 biggest trading days the averag would onl have been 0.43% (and it goes downhill from there), according to the J.P. Morgan Asset Mnaagement 2022 Retirement Guide published March 3, 2022 p 44. Read Structured Settlement Rate of Return Compared to Alternative Investments (4structures.com) for more details.
Note: Structured settlement rates vary by insurance company and other factors such as duration. Read more about structured settlement quotes
|
|
by John Darer CLU ChFC MSSC CeFT RSP CLTC
|
|
Comments and Trackback Policy