The AEGIS Structured Settlements Company (TASSC)sm is an alliance between AEGIS Insurance Services, Inc., EPS Settlements Group and Mesirow Financial Structured Settlements, formed to provide structured settlement services to the utility and related energy industries in connection with structured settlements.
The mission of TASSC is to assure members consistently superior structured settlement services. Its primary goal is to support AEGIS members, and the Excess Claims and Workers Compensation professionals at AEGIS, by providing alternative cost-effective claims resolution services to help achieve the lowest overall long-term cost of risk.
What Is A Structured Settlement?
Structured settlements are an innovative method of compensating injury victims. Encouraged by the U.S. Congress since 1982, a structured settlement is a completely voluntary agreement between the injury victim and the defendant.
Under a structured settlement, an injury victim doesn't receive compensation for his or her injuries in one lump sum. Rather, the injury victim will receive a stream of tax-free payments tailored to meet future medical expenses and basic living needs.
A structured settlement may be agreed to privately (for example, in a pre-trial settlement) or it may be required by a court order, which often happens in judgments involving minors.
Advantages of a Structured Payout
- Deductibility to payer – fully deductible in year of settlement
- Payer has no contingent liability
- Provides secure, tax-free periodic payments
- Avoids premature exhaustion of funds
- Maximizes benefits when employing age rating
- May provide a higher rate of return than other funding vehicles
- Meets the unique needs of clients as each settlement is individually designed
- Both parties close files
- Defendants can save on cost and administration of claims
- Claimants receive the care and support they need
- Principal and interest are entirely tax-free (for life, if requested)
- Offers flexibility and convenience of regular payments
- Provides future financial security
- Reduces money management concerns and costs
- Very difficult for even the experienced investor to match the tax-free rate-of-return generated by a structure
- Judges universally support this concept
- Ability to structure attorney fees
When to Consider Structured Settlements
- To prevent premature exhaustion of funds
- To guarantee funds for long-term medical needs
- Temporary or permanently disabled claimants
- Workers’ Compensation cases
- When there will be total or partial wage losses
- Guardianship cases, including minors and incompetents
- As part of an overall investment portfolio
- Death cases where the surviving spouse needs guaranteed income
- Severe injury, especially shortened life expectancy
- Mentally disabled claimants
- Deferred payments for college funds, retirement, mortgage payments and attorney fees
- Tax deferred annuities for cases involving discrimination, wrongful termination, property loss (construction defect), sexual harassment and environmental cleanup
When Structured Settlements should not be considered
- When settlement is less than $25,000
- When claimant’s age is 75 or more with no beneficiaries
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