WHAT IS A STRUCTURED SETTLEMENT?  A structure settlement is a settlement that combines immediate cash for today’s needs and future payments for tomorrow’s needs. The future payments are usually funded through an annuity from a life insurance company. They can also be self-funded through other financial instruments to produce payments over time. The crucial element is that the payments have to be fixed and determinable at certain times in the future. If it is done correctly, all of those payments will flow to the individual who’s been hurt, or their beneficiaries, tax-free.

WHY WOULD SOMEONE WANT A STRUCTURED SETTLEMENT INSTEAD OF A LUMP SUM? Many times, when people (especially younger people) get injured, they don’t anticipate how much money they would need later on in life. As humans, we are horrible at delayed gratification, and lack self-discipline with large sums of cash. Imagine a company with 100 employees, and they all got paid on January 1^st for the whole year in a lump-sum. The lump-sum is expected to last until December 31^st. The majority of the employees would probably run out of money by April or May. It is the same scenario with lump sum awards for settlements. It’s not blaming anyone; it’s human nature. Structuring the settlement, it protects people from themselves.

THE AVERAGE STRUCTURED SETTLEMENTS ARE FOR AWARDS BETWEEN $25,000.00-$50,000.00:  Most people think structured settlements are only six-figure awards, but this is not so. For example, an injured worker is awarded $50,000.00 and needs $20,000.00 for “today’s needs” to pay off credit card debt and hospital bills. They then put the remaining $30,000.00 in a structured settlement for “tomorrow’s needs.” Those needs can include retirement, college funds and future medical care. The money that is put in a structure, usually (not definitely) has a tripling growth over time. The $30,000.00 that was placed in the structure could be worth $90,000.00 several years later when it is needed.

GIVING PEOPLE FREEDOM IN THEIR LIVES IS VERY REWARDING:  When people’s needs are being met, they have the freedom to try new things in life. They can get retrained in a new career that interests them, or have the freedom to indulge in a new hobby. They get to become “the author of their future.” The professionals at Arcadia take pride in thinking outside the box and establishing solutions that enhance people’s lives. and For more information on Structured Settlements, go to www.teamarcadia.com.

FIFTY YEARS AGO, ARCADIA OPENED THE FIRST STRUCTURED SETTLEMENT COMPANY:  Arcadia now has offices all over the United States, including a subsidiary in Canada (which is subject to Canadian legal and tax laws), and an outpost in Puerto Rico. Their settlement professionals work to provide structured settlements for worker’s compensation, medical malpractice, product liability, general liability and environmental claims. Arcadia also handles non-injury claims, such as employment disputes.