As a former claims adjuster, insurance trainer and manager with a CPCU who, for the past 22 years, has been serving the claims community as a Structured Settlement Consultant, I can say from personal experience and with total conviction that this article is spot on.
In recent years, the common misperception that interest rates are “too low” as a reason to avoid offering structured settlements just doesn’t hold up when one takes the time to analyze things as the author does here. True, interest rates may be low. But the follow-up question, “Compared to what?,” often goes unasked. Mr. McCulloch’s article provides the answer.
As a needs-based option, structured settlements have always been an excellent claims evaluation, negotiation and settlement tool for claims associates who take the time to understand their nuances. This article is a timely reminder that their income tax-free nature can be even more valuable in today’s revenue strapped economy of rising tax brackets.
Excellent article. Safety, stability and guarantees is the primary reason that people do structured settlements today. Tax benefits and interest rates are important but subordinated reasons. However the tax benefits do move into the fore when discussing settlement of lawsuits involving taxable damages (such as employment related lawsuits. In such cases so called non-qualified structured settlements provide a valuable tax deferral option to help avoid a tax on a year one lump sum that would decimate the settlement. In cities and states where there are piggy-back taxes like New York and other stats with high state and local income taxation, this is especially valuable
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As a former claims adjuster, insurance trainer and manager with a CPCU who, for the past 22 years, has been serving the claims community as a Structured Settlement Consultant, I can say from personal experience and with total conviction that this article is spot on.
In recent years, the common misperception that interest rates are “too low” as a reason to avoid offering structured settlements just doesn’t hold up when one takes the time to analyze things as the author does here. True, interest rates may be low. But the follow-up question, “Compared to what?,” often goes unasked. Mr. McCulloch’s article provides the answer.
As a needs-based option, structured settlements have always been an excellent claims evaluation, negotiation and settlement tool for claims associates who take the time to understand their nuances. This article is a timely reminder that their income tax-free nature can be even more valuable in today’s revenue strapped economy of rising tax brackets.
Excellent article. Safety, stability and guarantees is the primary reason that people do structured settlements today. Tax benefits and interest rates are important but subordinated reasons. However the tax benefits do move into the fore when discussing settlement of lawsuits involving taxable damages (such as employment related lawsuits. In such cases so called non-qualified structured settlements provide a valuable tax deferral option to help avoid a tax on a year one lump sum that would decimate the settlement. In cities and states where there are piggy-back taxes like New York and other stats with high state and local income taxation, this is especially valuable