Ringler Associates

Frequently Asked Questions

Q: What exactly is a structured settlement?

It’s a settlement that includes payments designed to match your future needs and goals. Read more…

Q: Are the payments really income tax free? (Federal, State, and Local)

Yes – if the settlement is made on account of a physical injury, physical sickness or wrongful death.

Q: Why are they income tax free?

Congress recognized that injured people may require special assistance in the aftermath of a tragedy. There was also concern that too many people spend their money too quickly. So legislation was passed to give accident victims and their families an incentive to take their settlements in a series of guaranteed future payments.

Q: Where does my money go?

The parties settling your claim or lawsuit fund the agreed-upon payments with specialized annuity contracts. These contracts are not available to the general public and are issued by some of the leading life insurance companies in America.

Q: Could I do better in outside investments?

Maybe. Maybe not. What is clear is that because of the tax-free status of the payments, structured settlements offer returns higher than those normally available in low- to moderate-risk investments. To get a higher return you will have to take on higher risk and greater uncertainty. (Compare with the tax equivalency table.)

Q: What type of payments are available?

Just about anything you can imagine: Future lump sums. Income. For a set period. Over a lifetime. Over two lifetimes. Paid monthly, quarterly, semi-annually, annually. Level. Increasing. Now. Next year. In 50 years. Everything in between. One of the above. All of the above.

Q: Are there any other benefits I should know about?

Yes – a structured settlement is an effective way to protect yourself or a loved one from spending through settlement funds too quickly. It can safely distribute funds for many years or over a period of time designed to ease one into the responsibilities of managing a larger sum of money. Unlike non-guaranteed investments, a structured settlement has no ongoing investment expenses. Read more…

Q: How safe are they?

Structured settlements are funded by some of America’s strongest life insurance companies. Many of these companies have been in existence for more than 100 years – through recessions, depressions and world wars. Some have been keeping promises since before the Civil War.

Q: Can my family inherit the money from my structured settlement?

Yes. A guaranteed portion of the settlement can be paid to a beneficiary like a spouse or child after the death of the injured person.

Q: Why should I consider this option?

Peace of mind. Guarantees. Tax-free interest. One less thing to worry about. Protecting the money from the constant temptation to spend it too fast. Protecting it from bad investment results. If it’s important, it’s worth guaranteeing.

Q: Can I get a structured settlement from my own financial adviser?

Probably not. Most financial advisers do not have the experience in accident-related settlement planning and all the laws that surround a structured settlement. Ringler consultants, on the other hand, only do structured settlements.

Q: How much do structured settlement consultants charge?

Nothing, in most cases. If your case is resolved with a structured settlement, your consultant’s services are paid by the financial institution that guarantees your future payments.