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By using the services of a skilled settlement annuity broker, injured parties can maximize benefits while defendants save on the cost of the claim. There are a number of ways that the structure broker can help. However, it is most important that you know that in order for the settlement annuity specialist to design and prepare the most appropriate proposal for the injured party, he or she must have access to all of the information related to the case. A complete history of the case and injured party will yield a better settlement package. Structured settlement proposals are designed specifically for each injured party. Therefore, when determining the past and future economic damages, the structure broker must examine the information relating to the case in order to design a plan that truly meets each injured party’s future needs. Annuity costs determine the payout to the injured party and the cost to the defendant. Annuity costs depend on many economic factors as well as life expectancy. Structured settlement brokers with access to all of the major life companies providing structure products can canvass the life markets and obtain the best annuity prices for each injured party. One of the first approaches to obtaining a better annuity price is to see if the injured party qualifies for a sub-standard age rating.
Unless the annuity provider is supplied with evidence to the contrary, they assume that the injured party has a normal life expectancy. The longer the he or she is expected to live, the higher the annuity cost. A better rate-of-return may be gained if the injured party has conditions that may impact life expectancy. Smoking, obesity, alcohol consumption, ongoing medications, high blood pressure, kidney or heart disease are examples of important factors.
Usually, when cases are structured, injured parties receive larger, tax-free and more secure settlements than they would have received if they had chosen lump-sum cash settlements. |
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