Structured Settlements
The advantages of structuring workers compensation benefits to the Injured Worker are:
- guaranteed benefits backed by larger company
- continuation of tax-exempt payments
- provides flexibility to seek other employment
- provides flexibility to seek medical providers of choice
The advantages of structuring workers compensation benefits to the Employer/Insurer are:
- transfer of mortality risk to annuity company
- transfer of investment risk to annuity company
- reduction in liability reserves on the books
- reduction in claims administration costs
In summary, the process of structuring a a workers compensation
claim is as follows:
1. Choose the appropriate claim to structure (i.e. indemnity and/or medical, widow's benefits)
2. Design payment proposals to meet claimant's needs
3. Negotiate settlement to conclusion
4. Prepare Compromise & Release documents
5. Seek appropriate Board/Commission approval in your State
6. Annuity or Reinsurance contract issued subsequent to approval
Warning! Each case with Social Security benefits and/or Medicare involvement
should be closely reviewed and analyzed to determine the effects of the proposed
settlement on the continuing or future eligibility of such benefits. Please refer to
Medicare Set-Aside arrangements in Medical Trusts.