A structured settlement is a negotiated settlement of a personal injury claim in which the defendant agrees to make certain periodic payments to the plaintiff in exchange for a release of liability. To construct a structured settlement, all parties of the claim negotiate an arrangement that matches a series of scheduled payments to the plaintiff's needs.
Typically, annuities from a life insurance company are purchased to fund the defendant's obligation of periodic payments. These funding vehicles can produce a stream of periodic payments to the plaintiff. Structured settlements can be very simple, while some arrangements can be quite detailed.
Regardless of a particular settlement's design, structured settlements may have distinct advantages over an immediate lump sum. In most cases, both the defendant and the plaintiff will benefit.
The defendant (who may be a corporation, liability insurer or government agency) benefits through a faster, more efficient resolution, reducing the cost of prolonged litigation. Also, by assigning the obligation of payment to a financially sound third party, the defense can feel secure knowing all future payments will be met.
A mutual insurance company is a company that is not publicly traded. It therefore has no stock to be bought and sold and no shareholders.Instead, policyholders share in the ownership of the company. For this reason, unlike publicly owned companies that manage their business for the benefit of shareholders, we are guided by the longer term needs and expectations of our policyholders and payees. This makes New York Life, essentially, a partner in your long-term planning.
New York Life Insurance Company is a mutual insurance company, which means it is not publicly traded and has no shareholders. Instead, its policy owners are the ones who share in ownership rights of the company. With a mutual company, clients who purchase participating products are entitled to vote in the board of directors elections and are eligible to share in annual dividends that are declared. The company's priority is to safeguard their interests. Policies issued by our subsidiary companies are not participating and do not share in these rights.
Figure encompasses all policy owners of New York Life Insurance Company (NYLIC) and its insurance company subsidiaries. New York Life's company strength is based on several factors, including insurance in force.
Selling your structured settlement or annuity payments can be the solution to a range of financial troubles. Whether you're thinking of buying a house, starting a small business, paying off debt or student loans, using a portion of your future payments can help you get back in control. When you face a serious need, accessing your annuity can be better than putting your life on hold. Get money today by selling your payments, so you can improve your home or get the kids through college — without waiting.
Some believe that the growth of student loan debt is reaching problematic levels. Economists point to a drag on the economy as a whole because of high levels of student debt. One way that has been suggested to help students with loan repayment is to lower interest on balances. U.S. Senator Richard Blumenthal urged, "We must reduce the student loan interest rate back to 3.4 percent immediately, and then even lower, and develop ways for past students to reduce and erase the $1 trillion in existing debt. The failure of Congress to act now threatens our all too slow and fragile economic recovery and job creation." Another way to deal with debt to income levels is to require higher learning accountability. "Only recently have government regulators demanded accountability for the educational benefits universities produce and the efficiency with which they produce them: What does college cost? How many students are admitted? How many graduate? How long does it take them to graduate? How many get good jobs? At the same time, accrediting bodies have changed their measurement emphasis from inputs and activities to outcomes…