Key Settlement Concepts

Client First is focused not only your immediate needs, but also on helping you ensure that your money is there for you when you need it.

TIME VALUE OF MONEY: HOLDING BACK THE TIDE OF INFLATION

Been back to your favorite beach lately only to find that there’s not much sand left? Probably wish you had spent more time there or at least taken a photo to remind you how wide it once was.

The same can be said for the erosion of your money over time. In fact, because of inflation and other economic forces, your money will continue to lose its purchasing power (or value) year over year. Consequently, the longer you wait for your money, the less it will be worth. While you are powerless against the forces of nature, you do have the power to preserve your money.

TYPES OF STRUCTURED SETTLEMENTS

You are receiving a structured settlement that will benefit you and your heirs for life. But have you thought about what happens after you pass away? It’s so important to know how your payments are structured, so there are no surprises down the road for you and your heirs.

There are basically two types of structured settlements issued by insurance companies:

GUARANTEED STRUCTURED SETTLEMENT

This type of settlement ensures that your payments will continue over a certain time period regardless of how long you live.

LIFE-CONTINGENT STRUCTURED SETTLEMENT

This type of structured settlement enables you to continue to receive payments provided you are still living. But the catch is this: if you die, your payments STOP. Needless to say, your loved ones or other heirs will receive no future payments from this structured settlement once you pass away.