Structured settlements are a small percentage of personal injury settlements

A study by Towers Perrin reported that *. 2006 161 billion attention on injury victims and their attorneys Assuming that one-third of this quantity is charge, and about $ 105 were to applicants each year. New structured settlements are created at a rate of about 5-6 billion euros per year. According to Standard & Poor's ** In 2004, the cost of all regulations unstructured about $ 80 billion and expected to grow from 6 billion euros per year. By Standard & Poor's **, as of 2008 there were more than 500,000 contracts awaiting settlement built in the United States




Payment processing, provide flexibility in times of uncertainty and changes in circumstances.




The average person does not know much about the structured settlement payments. Without an understanding of the benefits of compensation payments for lump sum payments are injured rather choose a lump sum payment.




In fact, Joseph M. Costello, President of the National Structured Settlements Trade Committee Marketing Association (NSSTA) reported at the meeting of NSSTAs winter of 2007 and 2007 annual meetings, that only 7% of the colonies wounds between $ 75,000 and $ 100,000 are structured settlements and only 30% of injury settlements are settlements over $ 1 billion.




A study *** AIG in 2007 showed that less than one person Structured Settlements, the less likely he or she choose a structured settlement is white. And, more importantly, is the opposite: the more a person knows structured settlements, the more likely he or she will choose a structured settlement instead of a cash payment.




In the study, AIG asked people how they would like to get an answer. No explanation for the difference between a lump sum and an annuity structured settlement decided, 65% for a lump sum and 35% opted for a structured settlement. But after receiving an explanation of the differences between a lump sum and a structured settlement chose 73% of the structured settlement annuity payments, and only 27% opted for a lump sum payment, a complete change.




AIG, once the investigation has concluded that the structured settlement industry to educate Americans about the settlements.




Once you have learned the benefits of structured settlements, the plaintiffs, said that the main reason why she is for a structured settlement annuity that it provides a steady income for monthly expenses and ensure financial independence. That may not be so obvious to the applicants today are many possibilities and the flexibility offered by a structured settlement.




Once a person receives a lump sum, he or she can not change your mind and go to a structured compensation. However, if the injured party for a structured settlement payment, he or she has the opportunity. Later sell all or a portion of the transaction in the secondary market for money immediately, while retaining a portion of the revenue stream




Section 5891 of the Internal Revenue Code and Acts of structured settlement protection nationwide to transfer to the beneficiaries of the option, with the approval of the Court of compensation that structured settlement factoring companies to purchase payments. Given the flexibility of buying and selling in the secondary market, structured settlement payments is a better option for people who doubt the possibility of choosing a structured settlement or a lump sum.




Very few people are selling compensation




Applied to the total amount of outstanding funds currently in the structured settlement annuities over 80 billion less $ 800 million in the secondary market each year. This means that only 1% of the structured settlements are sold each year.