July 27, 2017

FAQs for Injured Parties

What does a standard Structured Settlement consist of?
There is no such thing as a “standard Structured Settlement.” At Vega Settlement Group we take into account the future needs and expenses of each and every single client. Our comprehensive analysis of your case will detail such projections and include a life care plan that will create a safe and secure future for yourself and your family.

The more we are able to understand about your projected income needs and expenses, the better we can design the ideal structure for you. Once we have this information, illustrations that we believe will be best suited for your financial needs and goals are prepared.

The illustrations are prepared for each client concentrate on having:

  • Sufficient cash to cover immediate medical, or nonmedical, expenses along with attorney fees.
  • Initial liquidity in the case of an emergency.
  • Tax-free periodic payments to provide income to the injured party.

What are the disadvantages of Structured Settlements?
For those that prefer having their money in a cash lump sum, it is a common notion that the inflexibility of a Structured Settlement is a disadvantage because they would rather see the whole amount of money in their bank account. One should keep in mind, however, that inflexibility translates into protection. A Structured Settlement can protect an individual from market fluctuations, outliving their financial resources and poor financial management.

What are money market accounts and annuities?
A money market account is a deposit account, offered through a bank, which pays interest to the account owner based on current interest rates. The funds deposited into the account are invested into government and corporate securities in order to yield a rate of interest. An annuity is created when an individual (the insured) pays a premium to a life insurance company that will be redistributed to the individual over time. These types of contracts generally provide a stream of income until the death of the annuity owner or a predetermined date, whichever comes first.

What separates Vega Settlement Group?
At Vega Settlement Group, we are committed to continually enhancing our capabilities in order to ensure the accessibility of relevant resources in structuring your settlement. We recognize that different clients have different financial needs and thus make suggestions solely based on their specific goals and objectives. Our consultants are here to provide you with support throughout the course of the settlement, as we know it can become a tedious process. Settling a case can be very complex and so we make it our priority to advise you throughout all phases of negotiations, mediations, settlement meetings and court hearings.

FAQs for Attorneys

How do I know a Structured Settlement is financially secure for my client?
By securing a future stream of income, Structured Settlements protect claimants from dissipation of income. Proceeds from the settlement are invested into Structured Settlement annuities in order to accrue interest on a tax-free basis.

When structuring a settlement, we only works with insurance companies that are highly-rated by rating agencies such as: Standard & Poor’s, A.M. Best, Moody’s Investors Service and Fitch Ratings. Each of these insurance companies is subject to financial compliance and regulations set forth by the CA Department of Insurance. By regulation, insurance companies must hold annuity reserve funds in correspondence to their payment obligations. Any assets used to support such reserves cannot be sold or disposed of, thus meeting contractual obligations to policyholders.

When should I consider a Structured Settlement for my client?
A Structured Settlement should be considered in any injury case involving punitive damages, personal physical injury, workers compensation, cases involving minors and/or medical malpractice. With over 15 years of experience, we work with attorneys and clients in California in order to construct portfolios for individuals who expect to receive a settlement from their case. The abundance of money can sometimes cause a person to not act how they normally would and he/she might be tempted to go on a shopping spree.

If you are concerned about your clients’ ability to handle a vast amount of money than a Structured Settlement is suitable for your client.

Can attorney fees be fit into the structure of the settlement?
Yes. Attorney fee structures can be included in cases that have unspecified value at inception but will be paid upon settlement.

Is there a minimum/maximum settlement amount that would necessitate a structure?
There is a small minimum of $10,000 and no maximum settlement amount required to arrange a Structured Settlement, thus it applies to a wide variety of injury cases. When most people hear the term “Structured Settlement,” they assume that the settlement amount is for hundreds of thousands of dollars, and even millions. Surprisingly this is not always the case, as our settlements can range anywhere from $10,000 to $1,000,000 or more. Structured Settlements can be arranged as long as the plaintiff has not yet received compensation or signed a release indicating their waiver of right and all parties agree to establish the future periodic payments.