PROTECT YOURSELF. BE INFORMED.
FAQ: What is a Periodic Payment Settlement?
A periodic payment plan is a claim settlement arrangement to compensate for personal injury. Such an arrangement may include an initial “up-front” cash payment plus a schedule of future benefits designed to meet future financial needs or objectives.
FAQ: Should you Consider a Periodic Payment Settlement?
Should you Consider a Periodic Payment Settlement?
A periodic payment settlement offers the following significant advantages over a lump sum settlement:
TAX-FREE BENEFITS TO YOU:
Pursuant to I.R.C. 104 (a) (2) of the Internal Revenue Code of 1986, as amended, all payments are “tax-free”. The Code allows for the tax-free accrual of interest on the sum of money used to fund your periodic payments. As a result, you receive greater benefits than would otherwise be available to you had you chosen to invest the money yourself.
Unlike a lump sum settlement, a periodic payment settlement will provide guaranteed benefits at specified payment dates to assure you of financial security.
FLEXIBILITY TO MEET INDIVIDUAL NEEDS:
A periodic payment settlement can be designed to meet your needs. You may wish to provide for future education expenses, supplement a retirement fund, or simply provide for financial security. The plan can be “tailor-made” to meet your objectives.
Benefits will not be affected by changes in the financial marketplace or the economy and will provide a secure source of funds in the future.