ESS Settlement Services

  • Facebook
  • Google+
  • Linkedin
  • Twitter
  • Home
  • About Us
    • Our Founders
    • Staff and Affiliates
  • Our Services
    • Structured Settlement Design & Planning
      • In Depth Look At Structures/FAQ
      • Complete Document Preparation & Review
      • Mediation Attendance
    • Life Care Plan & Financial & Economic Needs Analysis
      • Pre and Post Verdict 50(a) & 50(b) Periodic Judgment Analysis
    • Attorney Fee Deferment
    • Medicare Set-Aside (MSA) Analysis & Future Allocation Apportionment
    • Lien Resolution Services
    • Benefits Coordination & Planning Team
      • Medicare, Medicaid & Healthcare Compliance
    • Trust Advisement & Services
    • QSF Services
  • Our Blog
  • Resources
  • Contact Us
    • Request a Proposal

What Are The Benefits of Life Insurance for Structured Settlements?

December 22, 2014 by Randy Levine Leave a Comment

life insurance benefitsStructured settlements are great for personal injury clients who will need care for years to come — maybe for the rest of their lives — but sometimes even that is not enough. What if this client is completely reliant on someone else, a parent or child, who provides care almost 100 percent of the time? What if something were to happen to that person? What will happen to the client then? Who will take care of them and how will they pay for that care?

A child with a terrible birth defect who was going to need care for her entire life received a settlement for her birth injury. We established a settlement preservation trust, into which a structured monthly payment would cover all of her needs. Fortunately her parents were able to take care of her. We wanted to make sure that she would be taken care of in the worst case scenario: if something were to happen to her parents and one or both of them were no longer able to care for her.

Through her trust we purchased a life insurance policy for each of her parents. The premiums were paid over the course of five years with five structured payments. If something were to happen, the trust would receive a $2 million cash influx to cover the costs of professional care, school and any other needs that could arise. Obviously, we hope that her parents will be around for a long time, but now we know we’ve gone above and beyond to plan for the worst curve ball life can throw. And if nothing happens, there will be tax-free income from the cash value of the policy waiting for her when she’s older.

We recommend adding life insurance for caregivers to structured settlements for clients with a catastrophic chronic or permanent condition, such as a brain injury. Each case has its own needs, whether they are medical, home care or special education; but life insurance should always be considered. This is a great way to be prepared for unforeseen circumstances while providing maximum flexibility.

Life insurance policies provide an additional source of tax-free income that can always be liquidated. They diversify the income sources for a client as well. Life insurance is also an investment that provides the potential for growth to supplement the fixed income from the structured settlement.

They say that nothing can prepare you for the grief of losing a parent or child, but you can be prepared financially for the ultimate worst-case scenario.

How are you accounting for worst-case scenarios? Do you have any examples of how life insurance was helpful in a structured settlements situation? Please share your thoughts and ideas with us.

Filed Under: Life Insurance, structured settlements Tagged With: chronic condition, Life Insurance Benefits, structured settlements, tax free income

Recent Posts

  • ABLE Accounts: providing a better life experience for New York’s disabled residents
  • Bringing Your Client to Mediation: the pros and cons considered
  • How To Identify Which Cases Are Ripe For Mediation
  • The CMS Recovery Portal: helping put money in your pocket faster
  • Getting the Most of Out of Your Next Mediation

Search

Tag Cloud

ABLE ACT 2014 Affordable Care Act Amos v Rodman annuity chronic condition confidentiality clause Dennis Rodman Erisa financial planning Health care insurance adjustors IRS law lien resolution Life Care Plan Life Insurance Benefits litigation mediation mediations mediator Medicaid Medical Law Medicare Medicare Liens Medicare Secondary Payer Act Medicare Set Aside medicare set asides MSA MSP notice of hardship conversion Obama Care personal injury law plaintiff plaintiffs private letter ruling settlements Special Needs Trust structured settlements tax free tax free annuity tax free income tax on settlements trial-ready Wrongful Death Wurtz v The Rawlings Company

Our Mission

As a settlement consulting company owned and run by practicing trial attorneys, ESS brings you true plaintiff-based settlement consultants that are dedicated to serving the plaintiff’s bar and remaining on the cutting edge of settlement planning.

Follow Us Online

  • Facebook
  • Google+
  • Linkedin
  • Twitter

Our latest posts

  • ABLE Accounts: providing a better life experience for New York’s disabled residents
  • Bringing Your Client to Mediation: the pros and cons considered
  • How To Identify Which Cases Are Ripe For Mediation
  • The CMS Recovery Portal: helping put money in your pocket faster
  • Getting the Most of Out of Your Next Mediation

Connect With Us

ESS Settlement Services

P: 844-ESS-1212
F: 866-977-1201
E: info@esqsettlements.com
©2015 ESS Settlements Services, LLC - All Rights Reserved

Structured Settlements provided by Sage Settlement Consulting