Incorporating Structured Settlements Into Your Practice

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Incorporating Structured Settlements Into Your Practice

As a successful financial advisor, you are keenly aware that planning is a key to success. Also critical to succeeding in a competitive market, is distinction. How do you compare to your peers? Do you offer products that others do not? Do you offer stellar customer service? Or do you market to niche clientele? If you are an advisor who knows attorneys, has attorney-clients, or wants attorney-clients, then you must learn how offering structured settlement services can grow your book, with revenue that is completely free of constraints imposed by recent DOL regulations.

Structured Settlements

A structured settlement is an exclusive commercial annuity product that is most often utilized during legal settlements but can also be applied to business sales and large real estate transactions. It is essentially an agreement between the plaintiff (injured person) and the defendant to settle their case before trial as a payment by the defendant of part cash lump sum and part future periodic payments payable to the plaintiff and plaintiff’s attorney (if applicable). Common types of legal settlements that incorporate structured settlements are personal injury cases (e.g. car accidents, medical malpractice, product liability), worker’s compensation cases and employment litigation.

Benefits to Payees

Either the plaintiff/claimant in the legal settlement or the plaintiff’s attorney can benefit from a structured settlement:

  • Future income is either completely tax-free or tax-deferred (depending on the type of legal settlement and if for the attorney, then only tax-deferred income is allowed).
  • Payments can be designed to meet the claimant’s specific needs.
  • Future payments can be coordinated with other products that you offer to help create a comprehensive plan for the injured person.

Benefits to You

  • A unique way to differentiate your practice to high net worth attorneys (i.e. potential clients)
  • Access to a new source of clients (typically exclusive access, because the claimants do not usually have an advisor before their settlement)
  • ½ of our commission on every structure paid as a referral fee

How to Market Structured Settlements

Including structured settlements into your practice is much easier than you realize. Reach out to attorneys you know and make them aware that you can offer structured settlement services through your partnership with Millennium Settlements. Also, look for local attorney bar associations for sponsorship opportunities. The AVITAS Team at Millennium Settlements will assist you throughout the process, from initial marketing efforts to attorneys to becoming your technical experts and back office staff when you have cases.

AVITAS Services

Marketing:

  • Co-host speaking events such as CLEs for attorneys, dinners/lunches with law firms.
  • Create monthly newsletters to send to attorneys to stay relevant.
  • Create co-branded marketing materials.*

Structured Settlement Services:

*The design and delivery of settlement annuity proposals within 24 hours.

*Overall case assessment and help with technical issues that arise.

*Participation in mediations/arbitrations/settlement conferences either

live or via teleconference.

*The drafting and coordination of necessary settlement documents.

*Coordination with the life insurance carrier for annuity policy issuance.

 

The Difference We Can Make

Attorneys are not used to financial advisors and structured settlement consultants working together for them or their clients. Historically the settlement scenario has been “either take cash and talk to your financial professional OR accept a structured settlement.” For the past ten years the AVITAS Team has worked to change this conception in order to promote comprehensive planning for injured people. By working together, you and AVITAS can truly make differences in people’s lives by providing the guaranteed security of future payments from the structured settlement and liquidity and growth offered by the various products you offer.

Contact your AVITAS Representative today to incorporate structured settlements into your business plan for 2017!

 

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