When did structured settlements become such a dirty word with trial lawyers?

In this weeks commentary on The Settlement Channel, host Mark Wahlstrom looked at the question of why the term "structured settlement" has become a dirty word with trial lawyers over the last 20 years. 

In this brief video commentary Mark looks at the primary root causes, among them:

  • The use by property casualty companies to cycle money back into their life insurance subsidiaries, leading to inappropriate or excessive allocations of structured settlements just to enrich the defense insurance company. 
  • The excessive advertising by factoring companies in the "cash now" TV mode which made it appear that everyone is looking to get out of structured settlement contracts, when in fact only 5% to 6% of all contracts are sold off. The vast majority of people appreciate and value their structured settlement plans, but the brand name has been tarnished by this advertising blitz. 
  • A flood of investment advisors and money management firms looking to tarnish or destroy the idea of structured settlements, so that they can divert money to money under management programs which often carry more risks, and costs, than injury victims realize. 
Structured settlements are one of the primary tools for settlement of personal injury claims, providing guaranteed income to injury victims and transferring the risk of out living one's assets or need for income.

Enjoy our on going tutorial series on structured settlements and settlement planning. If you or a client need assistance in locating a local structured settlement expert, please contact us or one of our regional experts directly for assistance!