Structured Settlement | Lump-Sum Settlement | Annuity

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Structured Settlement Broker -
Functions of Settlement Broker

A structured settlement broker or annuity broker is a licensed professional specializing in negotiating a payment schedule for a financial settlement that has been awarded someone by way of a lawsuit such as a personal injury lawsuit. Commonly the case derives from an injury due to negligence on the part of the defendant and a compensation amount is agreed by the two parties as a settlement without having to go through a trial.

There are advantages for the plaintiff with this option largely being the reduction of legal costs involved in being represented in court by an attorney if the case goes to trial. Also beneficial is the fact that a structured settlement guarantees a constant income over a period of years sometimes even for life. Structured settlements are free from Federal and State taxes whereas a lump sum payment which if invested would be subject to taxes on any gains. structured annuity payments are most commonly received and distributed by an insurance company acting as a third party.

There is much to be gained from utilizing the services of a structured settlement broker. The annuity broker will set up the payout schedule of the settlement with the payments commonly being made monthly or more often if needed. Also a structured settlement broker can make arrangements for periodic increases or advances against the settlement if an unforeseen financial need arises such as the need for updated medical equipment.

A crucial element of the structured settlement companies brokers is to ascertain the medical expense for which the injured party will be saddled with on a continuing basis, such as medical expenses like physical therapy, home care, medicine, etc. These expenses are determined on top of the regular living expenses the injured party incurs. These estimations are important in building a successful structured settlement as they are needed to establish the amount of annuity payments to be made and must also include the increased cost of living that will naturally go up over time.

Structured settlement brokers are a rare brand of professional. There are actually only a few hundred qualified structured settlement brokers in the whole of the United States that are registered with the Department of Justice. The annuity broker must be licensed or authorized to act on behalf of at least one insurance company, and are required to be insured by an Errors and Omissions policy. No person with a felony conviction or who has had a license as an insurance agent or broker revoked may become a structured settlement broker.