What is It? How it Expands Opportunities to Settle Cases
Independent Life insurance Company saw the value of having an attractive structured settlement solution for parties seeking a short-term return of premium (and possible gains) that led to the introduction of its duration based structured settlement compensation model.
The duration based structured settlement compensation model pays less compensation on shorter duration payment streams than on longer duration payment streams and higher compensation on longer duration payment streams
2% for durations less than 10 years
4% from 10 to 20 years
6% for long haul cash flows longer than 20 years
There’s nothing really strange about this when you consider that many life insurers pay persistency fees to agents and brokers of life insurance for business that stays on the books.
How has Independent Life's Duration Based Compensation Model
Led to Settlement Opportunities?
The duration based compensation model has led to opportunities unavailable to structured settlement consultants and their clients for many years. Consider some of these short duration examples:
- Using Independent Life as the front part of a front-back split funded structured settlement, with the back end split between fixed and/or market based structured settlement solutions,
- Non qualified structured settlements with a duration of 10 years or less.
- Structured installment sales with a duration of 10 years or less.
- Attorney fee deferrals of less than 10 years and a market based structured settlement is not desired or not an option.
- Structured settlements for mid to late teenage plaintiffs to mitigate the impact of settlement on student aid eligibility.
Independent Life Insurance Company, a Texas domiciled life insurance company, is the only life insurance company that solely writes structured settlement annuities.
New York Residents Not Eligible
Independent Life is not a structured settlement option for New York residents and settlements of New York based litigation at this time.
