How to verify your structured settlement

If you think you have a structured settlement, follow the following steps:

Check your documentation

• Review all legal paperwork from your lawsuit or claim.
• Look for terms like “periodic payments,” “annuity,” or “structured settlement.”
• Examine bank statements for regular deposits from an insurance company.
• Contact your attorney who handled the original case.

Contact relevant parties

• The insurance company making the payments.
• Your settlement planning company.
• The court where your case was settled.
• The structured settlement broker who arranged the settlement.

Common features of structured settlements

If you have a structured settlement, here’s what you can expect:

Payment flexibility

Structured settlements can be designed with various payment options:

• Life-contingent payments (continue for your lifetime).
• Guaranteed payments for a specific period.
• Lump sum payments at predetermined intervals.
• Increasing or decreasing payment amounts.
• Cost of living adjustments.

Legal protections

Structured settlements often come with specific protections:

• Tax advantages (usually tax-free for personal injury cases).
• Protection from creditors in many jurisdictions.
• Guaranteed payments backed by insurance companies.
• Court oversight in many cases.
• Restrictions on selling or transferring payments.

Benefits of structured settlements

A few perks to consider:

• Guaranteed long-term income.
• Tax advantages.
• Protection from poor financial decisions.
• Professional money management.

Potential limitations

A few drawbacks to keep in mind:

• Limited access to lump sums.
• Inflexible payment schedules.
• Cannot be easily modified once established.
• May not keep pace with inflation.
• Dependent on the insurance company’s financial stability.

What to do if you have a structured settlement

Some pointers and rules of thumb to manage your settlement responsibly:

Record keeping

• Maintain a file with all settlement documents.
• Keep track of all payments received.
• Document any communication with the insurance company.
• Save annual statements and tax documents.

Financial planning

• Incorporate settlement payments into your budget.
• Consider consulting a financial advisor.
• Understand the long-term implications of your payment schedule.
• Plan for major life events and expenses.

Selling considerations

If you’re considering selling your structured settlement:

• Understand that sales require court approval
• Recognize that you’ll receive less than the full value
• Consider partial sales instead of selling all payments
• Consult with financial and legal advisors
• Compare offers from multiple purchasing companies

Red flags and warning signs

Be cautious if:

• You’re receiving unsolicited offers to purchase your payments
• Someone pressures you to sell your payments quickly
• The insurance company stops making payments
• You notice unexpected changes in payment amounts
• You receive communications from unfamiliar companies about your settlement

Getting professional help

Consider consulting:

• A financial advisor with structured settlement experience.
• An attorney specializing in structured settlements.
• A tax professional for guidance on payment implications.
• A structured settlement consultant for general advice.

Final thoughts

Understanding whether you have a structured settlement involves reviewing your legal history, examining your documentation, and understanding your payment structure. If you confirm you have a structured settlement, it’s important to understand your rights, maintain proper records, and make informed decisions about managing or potentially selling your payments. When in doubt, consult with professionals who can provide guidance based on your specific situation.

Remember that each structured settlement is unique, and what works for one person may not work for another. Take time to understand your specific arrangement and make decisions that align with your long-term financial goals and needs.

Pave the way with Stone Street

Do you need upfront money for any of the following?

• Annuity
• Structured Settlement
• Inherited Annuity
• Assignable Annuity

If so, we will work with you one-on-one so you get the options that best fit your needs:

• One-on-one consultation.
• Customized solutions just for you.
• Customer service you can count on.

Call us at 866-416-5118 to talk about your financial needs and what annuity payments you have coming to you. We’ll do the hard work and handle the rest of the process!