Structured settlement: structured settlement is a tool to manage the finances of injured. It helps in bearing the loses caused due to any kind of injury or damage by paying income to the sufferer on regular intervals or the time when he desires them by exempting that income from any kind of taxes and providing help to the sufferer to a great extent. Structured settlement is exclusively and especially created for the injured people. It does not provide complete payment to the injured at once; it provides the payments in intervals or after a fixed period of time according to the needs of the person. People who can get the benefit of a structured settlement can be the people who experienced- death, sickness, compensation, claim or any kind of injury. The income received under the structured settlement for the life annuities is a great benefit as it provides a lifetime security of receiving the income on regular intervals. Due to this the payee or the injured person can maintain the same level of their livings as it is before the loss. The intervals of the payment can be structures according to the need of the payee i.e. weekly, monthly, yearly or other intervals. The structured statement also provides the benefits in consideration to the life period or the death of the payee. The payment can be made according to the plan adopted by the party. The conditions will adopt the longer period under the contract for paying the incomes. This is into practice from approximate of 20 years and has shown great results according to the type of agreements made. In the present year i.e. 2016 there is a myth prevailed under the structured settlement that it was proposed by the defense which also states that, structured settlement offered by Life Insurance Company tied to the defense.
There are certain facts which are observed and received regarding structured settlement myths in the years 2016
these facts are stated below
- It is a fact that life insurance companies don’t offer any kind of structured statements, rather they issue the different variety of settlement annuities with their different benefits and further these annuities are offered through the dependents, bookers or the insurance appointed by them. These bookers are also paid commission for offering the annuities to the payee.
- It is a fact that majority of the dependents do not own any kind of life insurance companies which issue different structured settlement annuities, they are just their agents and act as a link between the issuer and the receiver.
- It is a fact that most of the life insurance companies do not even offer any kind of settlement annuities, they are just the issuers after that they do not perform any kind of task for completing the structured settlement process.
- It was surveyed and observed that in reality the majority or most of the insurers in field of causality and property do not even own an insurance company which issues settlement annuities. So it is not necessary that life insurance company is always tied with its defense it’s just a myth.
- Most of the brokers or the insurance consultants are completely tied up with the life insurance companies that are tied to the defense, but not all the companies do the same.
There are life insurance companies which are pre-dominant issuers of the structured settlement annuities or the qualified funding assets; list of the companies is shared below.
- The American general life insurance company AIG owns the structured settlement annuities while the United States life insurance company maintains an improved and qualified list of the annuities issues for the structured settlements. Most of the people prefers USIC instead of AIG as AIG becomes an option at the time off peak because it does not issue and only owns the annuities. Most of the bookers or the agents are associated with these companies and represent the companies
- USAA owns a life insurance company of its own, but it does not even insists itself on writing and issuing all the structured annuities on its own. Being most competitive in its field this company has also achieved great ratings and along with this they do not have to qualify any type of assignments to stay in the market.
- Berkshire Hathaway Group is a big name in this field and it also owns a large number of insurers under their name, many life insurance companies issuing structured settlement annuities fall under this group. This has received the highest possible ratings till now posted anywhere or everywhere. Berkshire Hathaway is the strongest and the biggest fighters among all the other structured settlement annuity issuers which makes it a name and famous throughout the world.
- Liberty Mutual Insurance Company is also one of the most famous life insurance companies. It gives guarantee and also owns life insurer which issues structured settlement annuities. Not only this, they do have an approved list of most of the structured annuity issuers. If the issuer performs the non qualifying assignments, given under the agreements of structured settlement then they will be hired directly at the Liberty Life Assurance Company of Boston.
It is well stated that there are many life insurance companies that are tied with the defense, but they are in a majority not the ones who offer the settlement annuities which is the great part performed within the defense. They issue annuities to the brokers who further offer these annuities to the clients and serves as an important link between the defense and the life insurance company. There are very famous and big insurance companies present especially in USA which own such annuities and get the work done fro further appointed brokers and are at higher ranking grades in present. It’s not necessary to only offer the annuities; rather one can issue them and simply get them offered by further good connecting links.