How Liberty Life Structured Settlements Provide Long-Term Financial Security

If you’ve suffered a catastrophic injury, structured settlements offered by Liberty Life can provide guaranteed income for life. Structured settlements provide tax-free funds on a schedule to cover future medical costs, living expenses, and other needs. Read on to learn how Liberty Life structured settlements work and how to determine if one is right for your situation.

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What are Structured Settlements?

With a structured settlement, an injured plaintiff accepts a settlement payout in periodic installments funded by an annuity rather than a single lump sum. Payments are customized based on individual needs.

Benefits include:

  • Tax-free income for life
  • Avoid risks of managing a lump sum
  • Payments unaffected by stock market fluctuations
  • Custom schedule aligning with future costs
  • Death benefit passes remaining payments to heirs

How Do Liberty Life Structured Settlements Work?

Liberty Life, part of the Globe Life family, issues annuities funding structured settlements. These provide customized tax-free income streams.

Key features of Liberty Life structured settlements include:

  • Payments guaranteed by Globe Life’s financial strength
  • Ability to modify terms due to changing needs
  • Support from Liberty Life settlement consultants
  • Lump sum payout option after specified time period
  • No administration or management fees

What Are the Benefits of Structured Settlements?

Typical benefits of structured settlements versus lump sums include:

Guaranteed income – Regular payments continue regardless of lifespan or market conditions.

Avoid mismanagement risks – Remove temptation to quickly spend funds and chance of poor investments.

Tax advantages – Structured settlement payments aren’t taxed, maximizing total income.

Custom schedule – Tie payments to future medical treatments, living expenses, etc when needed.

Death benefit – Remaining guaranteed payments pass to heirs, providing ongoing support.

Medicaid qualification – Structured payouts typically don’t impact eligibility.

Who is Eligible for a Structured Settlement?

Structured settlements are commonly used in resolving:

  • Personal injury lawsuits
  • Medical malpractice claims
  • Workers’ compensation cases
  • Veterans benefits claims

They provide tax-free income tailored to individual needs. Discuss options with your attorney.

How are Payments Structured?

Payments are customized based on factors like:

  • Injury severity and prognosis
  • Expected medical treatments and costs
  • Income loss and future earnings potential
  • Health insurance coverage
  • Age and life expectancy
  • Household dependents and expenses
  • Financial needs and obligations

The schedule aligns payments with recurring needs.

What Cases Call for a Structured Settlement?

They benefit plaintiffs with:

  • Permanent disabilities requiring lifetime care
  • Catastrophic injuries limiting work ability
  • Costly recurring medical treatments
  • Diminished life expectancy
  • Lost wages and reduced earning capacity
  • Responsibility to support dependents
  • Lack of financial experience or discipline

What Injuries Warrant Structured Settlements?

  • Traumatic brain injuries
  • Spinal cord injuries
  • Severe burns
  • Amputations
  • Loss of vision/hearing
  • Multiple fractures
  • Birth injuries like cerebral palsy

How Are Payment Amounts and Duration Determined?

Amounts tie to costs for:

  • Doctors and medications
  • Rehabilitation and therapies
  • Home healthcare
  • Special equipment
  • Caregiver assistance
  • Transportation for treatment
  • Home/vehicle modifications

Duration depends on needs over one’s expected lifespan.

How are Structured Settlements Funded?

Insurance companies purchase annuities from established life insurance firms like Liberty Life to fund settlements. The annuity issuer then makes the periodic payments.

What Are the Tax Benefits?

Unlike lump sums, structured settlement payments aren’t considered taxable income by the IRS under Section 104(a)(2). This exempts them from federal taxes. State tax exemptions vary.

Can Payments Be Modified?

Yes, terms can be adjusted if needs change. For example, medical breakthroughs may reduce costs. Modifications require mutual agreement.

When Can Settlements Pay Out in a Lump Sum?

Liberty Life structures often include a “commutation rider” allowing a lump payout after a set time period, such as 5-10 years. This provides access to funds if needed.

Do Structured Settlements Affect Eligibility for Public Assistance?

Typically not. Settlements are usually exempt from asset limits for programs like Medicaid and SSI. But other factors may impact eligibility, so seek advice.

Frequently Asked Questions

How do I know if a structured settlement is right for my situation?

If you have severe long-term injuries limiting work capacity and requiring substantial ongoing care, a structured settlement provides guaranteed tax-free income when you need it. Discuss options with your lawyer.

What are the main benefits of structured settlements?

Benefits include guaranteed regular payments for life, avoiding risks of managing a large lump sum, tax-free income, aligning payments with future costs, passing remaining benefits to heirs, and maintaining eligibility for needs-based assistance.

What types of cases commonly involve structured settlements?

They frequently resolve personal injury, medical malpractice, workers’ compensation, and veteran disability cases involving permanent serious injuries like spinal cord damage, brain trauma, paralysis, blindness, and loss of limbs.

How customized are payment schedules?

Very customized. Payments match up with your specific expected medical costs, living expenses, and family responsibilities over your lifetime based on factors like your needs, age, and prognosis.

What insurance companies typically fund structured settlements?

Insurers purchase annuities from established life insurance companies like Liberty Life to fund the periodic payments. Liberty Life is known for providing excellent service.

How do I know payments are guaranteed?

Top-rated structured settlement annuity issuers like Liberty Life/Globe Life have high financial strength ratings from agencies like A.M. Best. This assures they’ll make payments as obligated.

Final Thoughts

If you’ve suffered permanent disabling injuries, structured settlements from highly rated providers like Liberty Life offer guaranteed tax-free income for life. This protects your future and brings long-term financial peace of mind. Discuss options with your attorney to see if a structured settlement is right for you.