Structured Settlements of Workers' Compensation Claims

You are probably familiar with the concept of using structured settlements to resolve personal and physical injury claims, but are you taking advantage of structured settlements as a tool in resolving your workers' compensation claims?  Structured settlements in workers' compensation provide many of the same advantages for injured workers, employers and their insurers as they do for claimants, defendants and insurers in personal injury claims.

• Income tax free payments to the injured worker or worker's family [under Internal Revenue Code Section 104(a)(1)].
• Flexible payment patterns to meet the needs of the individual.
• Highly secure life markets making the future payments.
• Attractive, fixed returns not subject to the volatility of the equity market.
• Closure of claim files and release of future obligations.

Unique Benefits to the Injured Worker

Structured Settlements can have unique benefits to injured workers in specific circumstances.

• Can provide the opportunity to receive cash for immediate financial needs and still retain a periodic payment plan for future needs.
• Can provide the opportunity to receive lifetime payments rather than the statutory payments that cease upon remarriage, return to work or end of payment period.
• No longer have to deal with employer or its carrier but instead receive fixed payments directly from the life company.

Unique Benefits to the Employer or its Carrier

Structured Settlements can have unique benefits to the employer or its insurance carrier.

• Transfers mortality and investment risk for long term claims to the life company.
• Provides opportunity to close high exposure, long term indemnity and medical claims.
• In reinsurance cases, can reduce the carrier's reserves on long term retained claims.
• Can reduce the cost of funding Medicare Set-Aside obligations.

For more information, please contact us at 800-358-0312.