What is a Structured Settlement?
A structured settlement is created when a portion of a personal injury settlement is received in the form of guaranteed, tax-free, periodic monthly payments. It is a secure way to use settlement funds to create a guaranteed “paycheque”.
How does the return compare to other investments?
Because structured settlement payments have no fees or taxes and allow the continuation of many government benefits, there is no other investment available that can guarantee a higher rate of return.
What does it cost me to obtain a structured settlement?
There are no investment fees with a structured settlement. The structured settlement professional that places your structure will be paid once, by the life insurer that gives you the greatest benefit.
How safe is a structured settlement?
A structured settlement is one of the most secure investments available. Your payments are provided by the largest and safest life insurers in Canada. Each structured settlement is backed by multiple levels of security.
When should I learn about a structure?
When you’re close to settling your claim, ask your lawyer for more information about how a structured settlement might benefit you. Make sure that you learn about a possible structured settlement before your case settles because it is usually too late to have a structured settlement after you receive your settlement funds.
What are the benefits of a structured settlement?
• Considered to be the most secure investment in Canada – not a single penny of any structure payment has failed to be paid in the history of Canadian structured settlements.
• Tax free – always.
• Not reported on a tax return, so many income-tested government benefits and credits are preserved.
• Certainty of payment for life or for a specific period of time – your choice.
• Often payments can continue, tax-free to your designated beneficiary, in the event of your premature death.
• Design can include inflation protection, periodic lump sums, stepped income, deferred start and more.
• Protection from losing your settlement funds in the event of bankruptcy or marital breakdown – a structure cannot be collapsed.
• Looked on favorably by banks when applying for a loan, line of credit, or mortgage.
• To learn more about structured settlements, visit mckellar.com
About the Authors
When Rob Durante was called to the bar in 1997, he had been articling for a year with a law firm that specialized in defending insurance companies in personal injury cases. “I developed a sense of wanting to right injustices,” he recalls. “I didn’t want to work for the insurance companies… For me, it’s all about achieving justice for clients, righting wrongs and arranging fair compensation.” Rob joined Oatley Vigmond that same year and has been advocating for seriously injured clients and their families ever since.