Structured Settlements
ZLC Financial Group is British Columbia’s leading provider of structured settlement services.
What is a Structured Settlement?
A structured settlement is a means of paying or settling a claim for damages (usually against a casualty insurer) so that all amounts paid to the claimant in the future will be tax-free. The casualty insurer purchases a non-assignable, non-transferable, non-commutable annuity contract and irrevocably assigns the payments to the injured party. To take advantage of the structured settlement option, the claim for damages must be made in respect of a personal injury or death.
The Structured Settlements Specialists
With over 25 years of experience, ZLC Financial Group is the leading provider of structured settlements in British Columbia. ZLC works diligently on nurturing its relationships with both sides of the legal dispute, including the claimant, plaintiff and defense counsel, along with casualty insurance company representatives.
Process for Structure Settlements
- Consultation and individual customized design of your structured settlement.
- Full market survey to find you the best rates and maximize your income.
- Immediate response – we are available for meetings and to answer your
- inquiries at anytime.
- Placement of structured settlement annuities.
- On-going servicing of the annuity for life at no cost to you, including banking,
- address changes or any other matters relating to your structured settlement.
FAQs that Claimants Want to Know
Why should I choose a structured settlement?
A structured settlement provides you with tax-free income. Managing and investing a large sum of money can lead to increased exposure to risky investments, unsound purchasing decisions, and outliving the money that was supposed to last you a lifetime. In addition, there are no charges or fees for the on-going structured settlement services provided by ZLC.
Are my structured settlement payments guaranteed?
Yes, not only are your payments guaranteed by the insurance company that provides your annuity, the casualty insurer must also remain contingently liable. A life insurance industry association (Assuris) also provides further protection on annuity payments.
Is my structured settlement protected?
Yes, once placed the structured settlement cannot be collapsed or altered in any fashion, thereby protecting the payments against creditors.
Do tax-free payments really benefit me?
Yes, nobody likes to pay income tax on the money they receive. With a structured settlement you do not pay any income tax nor is it reported on an annual tax return. The tax rate on other income is not affected by your structured settlement payments.
Do I have to pay fees to use a structured settlement?
No. There are no fees associated with the purchase of a structured settlement annuity. The structured settlement broker is paid by the life insurance company when the annuity is placed.
How about my estate and what happens if I die?
Usually the annuity provides a minimum guaranteed period. Any remaining guaranteed payments after your death will be made to your estate or beneficiaries on a tax-free basis.
Is the annuity subject to change at a later date?
No. Once the structured settlement annuity is placed, the annuity can not be altered or changed in any form.
What about inflation?
The structured settlement monthly payments can be indexed to offset inflation either at a fixed-rate (for example, 2% or 3% per annum) or to the Consumer Price Index.
Can the payments be directly deposited into my bank account?
Yes. All companies will directly deposit the payments into your Canadian bank account.
Can I take advantage of lump sum payments?
Yes, the design of your structured settlement can include lump sum payments in the future to provide for purchases beyond your monthly expenses.
Can I structure part of my claim?
Yes. In most cases, only a portion of the settlement is used for a structured settlement annuity. Most individuals prefer to pay off expenses and debts that they may have incurred.
What is the smallest amount that can be structured?
There is no minimum amount specified. Small claims affecting minors, the elderly and deferred payment structures are quite common.
How does a reduced life expectancy affect my annuity?
If you have a reduced life expectancy due to health reasons you may qualify for a higher monthly income. If applicable, medical information is submitted prior to the design and purchase of the annuity.