Personal Physical Injury

Handling a large sum of money after a personal physical injury settlement can be a monumental task for claimants and their families. Money earmarked for future needs may be unintentionally mismanaged—which means that money intended to last a lifetime might disappear in a much shorter period of time.

But there is a better way to prepare for the future ...

Instead of receiving a lump sum payment, claimants can choose a Structured Settlement and receive tax-free payments over time to cover their future financial needs. These payments are set up or "structured" to meet a claimant's specific needs. And because the money is paid out over time, there's no risk of mismanagement, making the future more secure.

Select any of the links on the left to learn more about Structured Settlements, to find out why Financial Settlement Services (FSS) is known for best-in-class service, or to determine if a Structured Settlement is the right solution for you.

What is a Structured Settlement?

A Structured Settlement is a means of settling a personal physical injury claim with a plan designed to meet the unique needs of the injured party. Instead of accepting a cash settlement in a single lump sum, claimants who chose a Structured Settlement receive future periodic payments made through a Structured Settlement annuity.

Because Structured Settlements can provide payments for a specific period of time—or even over a lifetime—they can provide benefits that cannot be outlived. Knowing that Structured Settlement payments will be there to meet future financial needs provides claimants with peace of mind and the financial security to plan for the future.

Better Than a Cash Settlement

Structured Settlements offer many benefits over a cash lump-sum settlement, including:

Flexibility

The payment plan is structured to meet each claimant's individual needs. A Structured Settlement can provide payments for a specific period of time or for life. Payments can be paid out monthly or at other intervals, and payments can stay the same or increase to account for inflation. FSS professionals will help claimants find the right solution.

Guaranteed payments

Payments are guaranteed* for whatever length of time chosen.

Payments are guaranteed* to be paid out—no matter what happens to interest rates or the stock market.
There are no money management fees or expenses, or investment worries.
If lifetime payments are chosen, claimants will never outlive the settlement funds.

Tax advantages

Because of IRS Revenue Ruling 79-220, Structured Settlement proceeds, including interest, are exempt** from federal and state income taxes. Claimants can avoid the tax burden that comes with investment earnings from a cash settlement which, over time, provides significant tax savings and maximizes the value of the proceeds.

This chart shows the value of receiving tax-free structured payments compared to the rate earned on another investment that's equal to the Structured Settlement internal rate of return.

Structured Settlement Internal Rate of Return	15% Tax Bracket	28% Tax Bracket	33% Tax Bracket	35% Tax Bracket
5.00% 6.00% 7.00% 8.00%	5.88% 7.06% 8.24% 9.41%	6.94% 8.33% 9.72% 11.11%	7.46% 8.96% 10.45% 11.94%	7.69% 9.23% 10.77% 12.31%

Assume that the claimant is in the 28% federal tax bracket and has invested a lump-sum settlement in a Bank Certificate of Deposit (CD). The CD interest rate would have to be 8.33% to get the same return after taxes are paid as a Structured Settlement with a 6% internal rate of return. If state tax is 3% and local tax is 2% (total tax is now 33%), the CD interest rate would have to be 8.96% to equal a 6% interest rate of return on a Structured Settlement. (this chart is for illustrative purposes only).

Risk-Free Investing

Structured Settlements eliminate exposure to market risks and the potential for investment failures. The life insurance company absorbs any risk of market and interest rate fluctuations, and the dollar amount of payments is guaranteed* year after year.

Money When You Need It Most

Structured Settlement payments can be designed to meet a claimant's needs today and tomorrow—even if that's decades from now. Claimants are assured that funds will be there when they need it, whether for medical expenses, educational expenses, basic living requirements, or for specialized health care needs that may arise in the future as a result of the injury.

When to Consider a Structured Settlement

Structured Settlements are ideal for personal physical injury claimants who value the security that a guaranteed future stream of income provides.

Many personal injury claimants benefit from a Structured Settlement, including when the injured party:

is temporarily or permanently disabled
has limited investment or financial experience
is a minor or under the care of a guardian***
is involved in a wrongful death case where the surviving spouse and/or children need secure future income
has a severe or catastrophic injury
is likely to have ongoing medical expenses
requires rehabilitation or a permanent care facility
needs to provide payments for college funds, retirement, down payment on a home or mortgage payments
needs to replace lost monthly/annual income or supplemental income

Why FSS?

We believe in matching each client's needs with the best solution possible.

At FSS, we take a holistic, life-management approach, working with each client to ensure we've created a plan that addresses their future needs.

Our first priority is to understand a claimant's future financial needs and concerns and then create customized and unique solutions that give them peace of mind knowing that the settlement funds will be there to meet future needs.

Our Team

Our team averages 10 years experience in the Structured Settlement industry. In addition to their Structured Settlement experience, our dedicated professionals have diverse backgrounds in casualty claims, workers' compensation, commercial liability, law and finance. Our team has a wealth of knowledge and experience that enables us to better serve our clients. At FSS, we deliver superior service to achieve maximum satisfaction and client benefit.

Customized Offering

FSS creates a customized package based on an individual needs assessment that takes financial and future goals into account. Our primary goal is to maximize our clients' settlement dollars using annuities from our highly rated Life Company partners.

Best-In-Class Service

Our reputation for service is second to none. We get involved early in the process and work hard to ensure that the process is easy to understand, timely and worry-free for our clients. Our large support staff allows us to quickly and accurately prepare and submit the required documents- allowing us to deliver exceptional service even through the post-settlement process.

Financial Strength

We work only with highly rated life insurance companies as our Partners to ensure financial dependability.

Financial Settlement Services is a division of Nationwide Mutual Insurance Company. The information is not intended to provide legal or tax advice. Due to various tax codes and regulations, you should always seek independent legal and tax advice.

*Guarantees are based on the claims paying ability of the issuing company.

** Federal income taxes are generally not due on the amount of each Structured Settlement payment (see IRS Section 104a(1)and(2), Section 130, and Revenue Ruling 79-220). This tax advantage only applies if a Structured Settlement is chosen at the time of settlement.

*** Many states have specific laws relating to minor settlements that may require court approval.