Financial Security What can a Structured Settlement do for you?
Regardless of a particular settlement's design, structured settlements may have distinct advantages over an immediate lump sum. In most cases, both the defendant and the plaintiff will benefit.
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The defendant (who may be a corporation, liability insurer, or government agency) benefits through a faster, more efficient resolution, reducing the cost of prolonged litigation. Also, by assigning the obligation of payment to a financially sound third party, the defendant can feel secure knowing all future payments will be met.
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Plaintiffs benefit by securing guaranteed income, a tax-free stream of payments. Free of the pressures of money management and the potential for dissipation of funds, the plaintiff can enjoy the peace of mind of financial security.
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While structured settlements have these advantages, consideration should be given to individual situations before making a final decision.
Advantages of a structured settlement
- All money paid to a plaintiff for physical injury damages under IRC Section 104 (a)(2) can be income tax-free regardless of when received.
- The results of the settlement are guaranteed.
- There is no cost for the management of the settlement funds.
- Periodic payments may be designed to specifically fit the needs of the plaintiff.
A structured settlement is only as good as the company providing it
As a mutual company, we hold ourselves to the highest standards of transparency, objectivity, and integrity.
Contact Us.
Reach out to our toll-free number at (855) 469-5772 or email SSInfo@newyorklife.com.
1New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies as of 10/15/2020: A.M. Best (A++), Fitch (AAA), Moody's Investors Service (Aaa), Standard & Poor's (AA+).