Frequently Asked Questions
Preferred Settlements, Inc.
In today's uncertain financial climate, a structured settlement offers peace of mind. An injured party's structured settlement provides a stream of future payments specifically tailored to their personal and family needs. The injured party doesn't have to worry about the responsibilities and risks of managing a lump sum settlement to meet the needs of a lifetime. The payments come from highly rated and financially secure life insurance companies. Federal law regulates how structured settlements are established and designed.
The Periodic Payment Settlement Act of 1982 explicitly encourages the use of structured settlements. In 1997, after 15 years of success with structured settlements, Congress approved legislation to promote structured settlements for workers compensation cases. And in 2002, President Bush signed legislation containing important consumer protections that further benefit structured settlement recipients.
Your structured settlements payments are funded by either US Treasury obligations or life insurance company annuities - two of the safest funding sources available.
Yes, Under current law, structured settlement payments are completely tax free from federal and state income taxes. Congress created this significant financial advantage to give beneficiaries a strong incentive to choose a structured settlement.
Structured settlements funded with US Treasuries or fixed annuity contracts are guaranteed not to change, no matter what happens with interest rates or the stock market. These payments are a secure source of income that can also incorporate cost-of-living adjustments, stepped payment increases and future lump sums for additional flexibility.
Structured settlements offer tailored solutions to settlement planning to ensure successful claim resolutions.