Financing for Structured Settlements
Structured settlements are court-decreed and/or negotiated methods of payment for the benefit of a plaintiff. Structured settlements are typically used in cases of product liability, wrongful death, medical and legal cases, personal injury cases, and the like. When finalized by the court or negotiated, structured settlements are typically paid over a prescribed period of time. To secure payments to plaintiffs, defendants will often purchase annuities from investment-grade rated insurance companies.
Through Affiliated, a plaintiff can receive a lump-sum payment immediately, rather than waiting years for periodic payments. Affiliated can monetize the structured settlement the plaintiff is receiving, enabling the plaintiff to receive the highest possible payment up front. Affiliated has unparalleled expertise in facilitating immediate payments through the financing of structured settlements and annuity payments. Affiliated’s institutional interest rates are the lowest in the industry, again ensuring the highest upfront payout. Once monetized, the plaintiff gets to keep the upfront payment, no matter what happens to the insurance company that issues the annuity.
Affiliated can offer settlement terms to insurance company defendants that can settle cases. We have offered to pay the plaintiff immediately, but give the defendant insurance company 5 to 7 years before they pay the settlement. This reduces the incentive to litigate and permits the insurance company time to collect the award from their client’s premiums.
Unlike other firms in the market that charge exorbitant “hard money” interest rates, Affiliated has direct access to institutional sources of capital, thereby providing plaintiffs with the opportunity to obtain upfront payments at reasonable rates, without sacrificing the financial benefits to which they are entitled by law. Plaintiffs have the opportunity to monetize all of their settlements or only a portion. Affiliated can also introduce plaintiffs to excellent money managers at leading investment banking firms, in order to help them maximize their growing wealth.
Affiliated’s financings are done on a non-recourse basis to the plaintiff. All Affiliated transactions are private placements and are sold to one institutional investor, rather than to hundreds or thousands of smaller investors. Closings are fast and efficient; Affiliated’s own in-house counsel originates and prepares all documents for closings.