We got you covered

Structured Settlement

Allows settlement discussions to focus on the needs of the claimant rather than what the claimant believes their case is worth.

Get Started

Many years in business

100% customer satisfaction

Knowledgeable advisors to help you

What is a Structured Settlement, how do they work, and how does it affect your claims costs?

A structured settlement is a negotiated, tax-free lawsuit or claims disbursed to the claimant in future periodic payments rather than a lump sum. If you have a structured settlement, it is essential to know the difference between an annuity and this type of payment. An annuity is purchased by the carrier at the time of settlement and offers predictable future periodic payments to the claimant.

A structured settlement is instrumental in bridging the gap between demand and offer. It allows negotiations to focus on what a person needs, rather than how much they think their case might be worth in court proceedings or discussions with insurers.

The carrier/ employer will be able to reduce their future medical exposure by providing a structured settlement. For example, suppose the claimant has an existing condition. In that case, it will be evaluated and projected for cost by providing that individual's rated age instead of using the age of a normal and healthy individual. It also reduces potential ongoing legal fees and expenses.

Types of Structured Settlements, Medical Malpractice, Personal Injury, Wrongful Death

There are two categories of structured settlements:

Qualified Settlements are claims that involve personal injury or tort and fall into the meaning of Section 104(a)(1) under Internal Revenue Code 1986 as amended. This makes them tax-free for those who make these settlements with a qualified settlement agent.

Qualified Structured settlements

Personal Injury
Wrongful Death
Medical Malpractice
Workers’ Compensation

Non- Qualified Settlements do not come from personal injury or wrongful death cases and are not tax-free but rather tax-deferred.

Types of Non-Qualified Cases

Sexual harassment
Punitive damages
Discrimination
Long-Term Disability Clams
Construction Defect
Attorney Fees
Breach of Contract
Fraud
Real Estate
Environmental Claims

Settlement options: Structured or Lump Sum?

Claimants that decide to settle with lump sum risk early dissipation of funds. Structured Settlements allow for secure, predictable income with tax-free interest.

Benefits of a Structured Settlement

Tools for negotiation
Payments for benefits over time
Designed to meet claimants’ needs
Provides claimants with a secure, predictable, tax-free income
An alternative method for settlement negotiations/changes the settlement negotiations dynamics from “cash only” to a structured settlement
Help facilitate negotiations
Programs are highly versatile, flexible, and can be customized
Helps reduce future medical exposure by using a rated age
The help of your settlement consultant is FREE

What you need to know and when should you consider a Structured Settlement

Structured Settlements can save you money. They allow for substantial savings by structuring the Medicare-Set Aside, future medical, and indemnity payments in case an MSA over $50,000 might require it. When offering a structured settlement, make it your first offer and refer to the case early. This will facilitate settlement via a structured settlement.

Request a Quote

Get Personalized Insurance

Name(Required)

First Last

Phone(Required)

Email(Required)

How can we help you?(Required)

By checking this box, you agree to receive an SMS from Mendiola Settlement Consultants. You may reply Stop to opt-out at any time!

This field is for validation purposes and should be left unchanged.

Videos

(714) 496-5920