{"id":21,"date":"2016-06-27T22:18:17","date_gmt":"2016-06-27T22:18:17","guid":{"rendered":"http:\/\/www.groupbff.com\/StructuredSettlement\/?page_id=21"},"modified":"2016-06-29T21:48:18","modified_gmt":"2016-06-29T21:48:18","slug":"frequently-asked-questions-faq","status":"publish","type":"page","link":"https:\/\/finkelsteinstructures.com\/?page_id=21","title":{"rendered":"Frequently Asked Questions FAQ"},"content":{"rendered":"

Why are structures important?<\/b>
\n<\/span><\/p>\n

An American life insurance industry study found that after receiving a large sum of money from a lump-sum settlement or judgment, a lottery windfall, or an inheritance, 25% of recipients had nothing left<\/i> within two months<\/i>. At the end of one year 50% had nothing left. After two years 70% had nothing left; and, within 5 years 90% had nothing left. (R.Somers, The Structured Settlement \u2013 A Better Way<\/i>, The Journal of Insurance, March\/April 1979).
\n<\/span><\/p>\n

Fiscal imprudence is human nature. It\u2019s hard to control spending.
\n<\/span><\/p>\n

Injured victims who receive large lump sum awards need the money for good reason.<\/i>Structures were created to prevent accident victims from becoming victims again by squandering their lump sums and becoming a burden on family or society.
\n<\/span><\/p>\n

What is a structured settlement?<\/b>
\n<\/span><\/p>\n

A structured settlement is an alternative to a conventional lump-sum settlement. It is a method of settling a claim for damages in respect of personal injuries or wrongful death by the payment of periodic sums for designated periods of time. The defendant\u2019s liability for payment of the periodic sums is funded through the purchase of an annuity contract from a life insurance company.
\n<\/span><\/p>\n

A structured settlement is a tax-free<\/b> financial package paid out over time and tailored to meet the specific needs and preferences of individual plaintiffs.
\n<\/span><\/p>\n

The structure is a type of annuity<\/b> underwritten by a life insurance company, and<\/u>guaranteed by the defendant\u2019s casualty insurance company (like ICBC).
\n<\/span><\/p>\n

The annuity payments may be scheduled for any length of time \u2013 even as long as the plaintiff\u2019s lifetime \u2013 and may consist of regular installment payments and\/or future lump sums. Payments can be in fixed amounts or they can vary.
\n<\/span><\/p>\n

Thus, a structure may provide regular monthly payments<\/b> for a fixed term<\/b>, or for theplaintiff\u2019s life<\/b>. These regular periodic payments can be combined with lump sum<\/b>payments made at fixed intervals in the future (e.g., every five years).
\n<\/span><\/p>\n

In our business we refer to structured settlements as Structures. Structured settlements are also referred to as Structured Annuities, Annuity Policies, Annuity Contracts, or simply Annuities.
\n<\/span><\/p>\n

Payment terms are most often referred to as:
\n<\/span><\/p>\n