$8,623 Billion! That was the total amount in premiums placed by the structured settlement industry in 2023, an all-time, record-setting year.
29,810! That’s the total number of injured people who opted for the guaranteed, tax-free income and financial security of a structured settlement.
“Why should I care?” you might ask. Because now might be the best time ever to recommend what has always been an exclusive benefit for injured people and their families: a structured settlement.
5 Reasons Why More People Than Ever Are Choosing Structured Settlements
-
Competitive Interest Rates
Interest rates on 30-year Treasury Bonds ranged from 3.5% to as high as 5% in 2023. Thus, life insurance companies are offering the best interest rates we’ve seen in years on the annuities at the core of a structured settlement. Moreover, we expect these favorable rates to continue in 2024.
-
Tax-Free Payments PLUS No Fees
Thanks to an act of the U.S. Congress, payments received by an injured person from a structured settlement are tax-free. There are also no management fees, which can range as high as 1%. These benefits and favorable interest rates add up to returns on a structured settlement that rivals any traditional investment.
-
Guaranteed Financial Security
Structured settlement annuities from Ringler are backed by the nation’s largest and strongest life insurance companies. These companies are legally required to hold reserves for the policies they issue and the risks they assume. Therefore, insurance companies keep the vast majority of their “depositors” funds on hand rather than loaning them out like banks.
-
Market-Proof, Lifetime Payment Streams
Injured people and their families will never have to worry about financial security during volatile market swings. The customized payment stream they design during settlement planning will always be there to cover short and long-term expenses, from medical bills to home mortgages to retirement.
-
Protection Against Premature Dissipation
An injured person may lack the financial sophistication necessary to properly manage and invest a substantial settlement fund. A structured settlement will help protect the funds needed to cover ongoing medical or living expenses well into the future.
Continued Strength Predicted for 2024
Many economic factors that powered the 2023 surge in structured settlements will likely continue in 2024. While the inflation rate has eased from last year, global inflationary pressures remain. Supply chain issues persist, especially around labor shortages and precious metals. Regional conflicts in Europe and the Middle East will continue to threaten market stability. Thus, the Federal Reserve has stated it will follow a measured approach to lowering interest rates. And that means we should see favorable interest rates on the long-term annuities that back structured settlements.
Simply put, now’s the perfect time for a structured settlement. Contact us today to discuss how a structured settlement can be a win-win for your next settlement negotiation.
