Some time ago, a survey was conducted by American General to gather feedback from existing customers about structured settlements. With over a thousand surveys sent out, 150 people responded, which is an excellent valid sample size. The survey was conducted by Esearch.com, Inc., and was sponsored by American General Life Structured Settlements.
A structured settlement is a customized method of compensating injury victims who have settled a lawsuit. It is a voluntary agreement between the injury victim and the defendant, and it has been encouraged by the US Congress since 1982. Under a structured settlement plan, the injury victim does not receive the total settlement money for their injuries in a single lump sum. Instead, they receive a stream of tax-free payments tailored in a secure annuity or trust that meets the needs of future medical expenses, children’s education, family needs, and basic living needs of injured parties, among other things. Congress made structured settlements tax-free to encourage their use. A prior survey by American General found that 57% of respondents depleted their cash settlement, highlighting the importance of structured settlements in providing security and stability.
The survey found that 86% of customers were satisfied with their current structured settlement, and 70% would recommend it to family or friends. The survey also found that most customers who wished to change something about their structured settlement wanted to alter their payment structure.
The most significant issue, according to the recent survey conducted by American General, 43% of customers who were asked if they would change anything about their structured settlement said they would want to change their payment structure. Specifically, they wanted more cash up front, more frequent, less frequent, or more monthly money. However, 58% of customers said they would not change anything about their structured settlement.
The survey also found that 86% of customers were satisfied with their structured settlement, with nearly 65% saying they were more than satisfied. Additionally, 62% said they would make the same decision again about their structured settlement, and nearly 70% said they would recommend a structured settlement to their family or friends.
In a previous survey, respondents were given a scenario about a personal injury case and asked if they would take a lump sum or a structured settlement. 65% of those chose a lump sum, with 49% saying they could make their own financial decisions and investments and 16% saying they would pay off large bills and loans.
However, when the advantages of a structured settlement were explained, 73% chose the structure, and 27% chose the lump sum. The primary reason for choosing a structured settlement was the regimented income stream for monthly expenses.
This survey spotlights why Ringler consultants understand the need to ask all the right questions. These questions determine if the case is a good fit for a structured settlement and ensure that the claimant receives the right balance of cash upfront for short-term expenses, along with a good payment design.
There is so much to consider when preparing to settle, and a structured settlement consultant can help you navigate the way. Previously on our blog, we discussed why families facing medical malpractice lawsuits need structured settlements. This is especially true when minors or non-cognitive adults. You can read about Christina Grillo’s story here: Why Families Facing a Medical Malpractice Lawsuit Need a structured settlement.
A Ringler consultant can help you decide if a structured settlement is best for your case. Find a consultant near you here: Find a Structured Settlement Consultant Near You.
A customized settlement plan from Ringler considers all the options and can provide hope and a secure future for injured people.
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