Budgets and Settlement Planning for Life After Settlement
John Darer • January 6, 2024
Most People Who Sell Their Structured Settlements Do So To Pay Bills
It is clear from both scientifically relevant structured settlement surveys and unscientifically irrelevant structured settlement surveys, that most people sell their structured settlement payment rights to pay their bills.
Q. Why do people have bills?
You receive a bill because you owe money to the manufacturer, merchant or provider of a product or service you have purchased. It is essential to differentiate between products or services that represent necessary staples, such as food, basic clothing, shelter, fuel, and medical care, and those that constitute discretionary expenses, such as a new TV, cruise, the latest gaming console, or renovating the kitchen with the newest Gaggenau.
Q Why do people get into trouble with their bills?
Some possible reasons:
- Failure to budget.
- Failure to adhere to a budget
- Mismanagement of credit.
- Price increases in goods or services that stretch or exceed budgeted and available income resources
- Failure to
monitor budget and adjust for increases in prices of necessary goods and services with a concomitant reduction in discretionary spending
- Unexpected large expense for unforeseen medical needs not covered by insurance
- Loss of income due to job termination, death of spouse or divorce
- Excessive or irrational largesse due to Transition Stress from sudden money or sudden wealth (tort victims, beneficiaries of inheritances and lottery winners)
- Failure to set up and maintain a reserve fund
The potential reasons for the inability to pay bills extend beyond tort victims and those who receive structured settlement annuity payments.
In the structured settlement annuity industry, dominated by many of the largest life insurers in the United States, Independent Life Insurance Company (ILIC) achieved significant milestones in 2024. Good news, positives and some concerns discussed in this lattest post.
Prudential and Pacific Life have once again been named among the world's most ethical companies. Prudential received the award for the 11th time., Pacific Life received the award for the 8th time. Prudential and Pacific Life are leading issuers of structured settlement annuities.
John Darer reviews structured settlement annuity market expansion featuring 3 new entrants Athene Life & Annuity, American National (ANICO) and Puritan Life as well as MetLife's development of a best in class
What is a Settlement Agreement and Release? What is the role of a Settlement Agreement and Release in establishing a structured settlement? What is a compromise?
John Darer reviews the primary structured settlement market, secindary market and tertiary structured settlement markets
A structured settlement annuity does not drive the tax consequences of structured settlement annuity payments. It is the type of damages the structured settlement annuity payments represent, as reflected in the relevant settlement documentation executed by the settling parties
Structured settlement beneficiary death claim. An executor cannot change the beneficiary of a structured settlement annuity. StructuredTypically, settlement agreements permit the Payee to name or change a beneficiary, provided such change is in writing and submitted to the Assigmment Company or annuity issuer in writing and in proper form.
Which life insurance companies write structured settlement annuities for personal injury and wrrongful death settlements in Bronx, Brooklyn, Staten Island, Queens, Manhattan, Long Island, Westchester, Erie, Rockland, Albany,Monroe in 2025 through licensed representatives?
Why Structured Settlements? Because Certain Sells® Structured settlements offer predictable income streams, which can be appealing to rein in uncertainty. John Darer reviews some other reasons that structured settlements are increasingly being used to settle cases:
Structured settlements have roots that trace back more than 100 years, from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as the core personal injury settlement planning tool it is today.
