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August 16, 2023 - The structured settlement industry is experiencing unprecedented growth as evidenced by an astonishing 77% increase in structured settlement premium volume at the midway point in 2023 compared to the same period last year. This surge in activity exceeds even last year’s bumper crop and is on track to surpass all previous records set since the industry's inception over forty years ago.
The rising popularity of structured settlements is equally apparent when one considers the 57% increase in the total number of structured settlements placed during the same period. This positive trend suggests that more claims professionals, plaintiff attorneys, and injured parties than ever before are recognizing the proven benefits of guaranteed, tax-free future income when resolving personal injury disputes.
Non-qualified structured settlements, which aren’t even captured in these industry figures, are also soaring in popularity. These options provide clients with a means to more tax efficiently resolve nonphysical injury disputes such as those stemming from employment litigation. People selling their businesses and other highly appreciated assets can also defer capital gains taxes via the non-qualified structured installment sale method.
These impressive figures validate the growing demand for structured settlements as a reliable and secure financial solution for physical and nonphysical personal injury claims and asset sales.
So, What's Driving This Positive Trend?
For starters, long-term interest rates are higher than they've been in more than a decade. The 10-year U.S. Treasury, which often trends in the same direction as structured settlement rates, recently closed at 4.27%, its highest level since before The Great Recession. This compares extremely favorably to major stock market indexes (which are inherently riskier and more volatile BTW) whose latest year-to-year returns are hovering in the 2.30% to 4.15% range despite some recent bullishness.
Factor in to all this the results of a recent CNN survey revealing that 70% of Americans feel financially stressed, it's no wonder people are choosing the safety and security of structured settlements and structured installment sales when presented with the opportunity.
At Finn Financial Group, we are delighted to help our clients meet their future income needs. We are proud to offer personalized income planning services to help you achieve your goals. We understand that each client has unique needs, and we tailor our services to meet those needs.
Whether you are anticipating a personal injury settlement, selling the family business or other highly appreciated asset like real estate, or simply planning for retirement, we have the expertise to help you. So let us help you secure your financial future.
But Before You Go
Be sure to check this podcast of my interview by BEI founder John Brown on the topic of "Deferring Taxes with Section 453: A Key Element of Exit Planning" by clicking the Why We Plan image below.
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