Are structured settlement still relevant? Not surprisingly the answer is yes, but on what I've observed, the key reasons why people like structured settlements may be different than what you expect.

1. STRUCTURED SETTLEMENTS IN 2017
ARE STRUCTURED SETTLEMENTS
STILL RELEVANT?
By John Darer® CLU ChFC MSSC RSP CLTC
Sudden Money® Advisor
4structures.com® LLC

2. A Few Things Structures Have Outlived

3. A Structured Settlement Is…
• A core tool in the settlement tool chest
• Like a ‘job’ that you can never be fired
from. [ without taxes on most damages in
PI/WD cases, also WC]
• A way to reduce cost of an MSA by 20-30%
• A way to defer taxes for taxable damages
or attorney fees payable to individual
lawyers or law firms
And that’s for starters!
©4structures.com®LLC 2017

5. Where Structured Settlements Fit
In the Settlement Tool Chest
STRUUCTURED
SETTLEMENTS
WEALTH
MANAGEMENT
TRUST
ADVISORY
• Structured Settlements
• Settlement Planning
• Sudden Money ®Transition Planning
• New York CPLR 50B Structured
Judgment Expertise Analysis/
Projections
• Mediation Support
• Structured Legal Fees
• Attorney Fee Deferred Comp
• Structured MSA
• Settlement Trusts
• Funding Agreements for B2B disputes,
environmental, commercial litigation
• Structured Installment Sales
• Life Insurance
• Life Insurance Conversions for LTC
• Life/Viatical Settlements
• Law Firm Buy /Sell Ins,
• Disability Buyout Ins.
• Long Term Care Ins.
• LTC Annuity
• LTC Life Insurance
• Medigap Insurance
• Medicaid Compliant Annuity
• Longevity Insurance
• Indexed Annuities , Indexed Linked
Structured Settlement Annuity
• Deferred Income Annuities, SPIAs
TRANSITION
PLANNING

6. Why People Allocate to Structured Settlements
• Address Longevity Risk
• Risk Tolerance
• Backed By Regulated Insurance Product
• Tax Benefits
• Interest Rates
©4structures.com®, LLC 2017

7. Structures Address Longevity Risk
HOW LONG? HOW FAR?
©4structures.com LLC 2017

8. Stable Income For Life, or As Long as You Like
©4structures.com®, LLC 2017

9. Longevity Insurance Backed by
Life Insurance Companies With Lots of Longevity
• New York Life Insurance Company (C19th)
• MetLife (C19th)
• Pacific Life Insurance Company (C19th)
• Prudential Ins. Company of America (C19th)
• US Life Ins Co. in City of NY (C19th)
• Liberty Life Assurance of Boston (105 yrs)
• American General Life Ins. Co. (102 yrs)
• United of Omaha (80+ years)
• Berkshire Hathaway/Natl Indemnity (75+ years)
©4structures.com®LLC 2017

10. Tolerance For Ups and Downs
FUN NOT SO FUN
©4structures.com LLC 2017

11. Fine Margins in Risk Tolerance
Faced with these margins, many people find structured settlements attractive
4structures.com® LLC 2017

12. Are Annuities a Passing Fad?
Annuities actually go back 2,000 years,
underscoring the immutable fact that
annuities have outlived centuries of passing
fads

13. Condensed Hx of Annuities
• Origins in Roman Empire (27BC-476AD), from
Latin “ Annua”
• Middle Ages- Tontine policies, the ultimate
‘Dead Pool’. Popular with wealthy investors.
• 1759 introduced in America as retirement
pool for church pastors
• Ben Franklin left annuity to City of Boston in
his will that paid out until the 1990s!

14. Condensed Hx of Annuities
• 1929 Stock Market Crash Safe Havens Sought
• 1952 First Variable Annuities
• 1975 Structured Settlement Early days in USA
• 1982 Periodic Payment Settlement Act
• 1985 New York CPLR Article 50A
• 1986 New York CPLR Article 50B
• 1995 Lump Sum Commutation Rider at Death PLR
• 1997 Non qualified assignment facility established by Liberty
Mutual
• 1999 Variable Structured Settlement PLR
• 1995 Structured Medicare Set Aside
• 2008 Non Qualified Assignment PLR (Taxable Damages)
• 2014 Index Linked Structured Settlement

15. Interest Rates
• Observed to be a secondary consideration
for most
• Interest rates have been improving
• Structured settlements are part of an
allocation in PI/WD cases
• Huge tax leverage on taxable damage
cases

16. Are Structured Settlements Still Relevant?
OF COURSE
THEY ARE!