Structured Settlement Compensation | Do "All Life Markets Pay The Same"... (Or Not)?
by John Darer CLU ChFC MSSC CeFT RSP CLTC. Cringeworthy to see omission about the commission and/or compensation of structured settlement consultants or settlement planners. I recently came across the following inaccuracy that is just not necessary...
How much do Structured Settlement consultants charge?
"There are no out of pocket expenses for utilizing a structured settlement consultant from (structured settlemnent consulting firm). If and when your case is settled with a structured settlement, your consultant’s services are paid by the life insurance company that guarantees your future payments. All life markets pay (structured settlement consulting firm) the same commission rate, so there is no incentive for us to place an annuity with a more profitable life market. Our job is to help design the best financial solution for the injured party and find the highest available yield among the various life markets, on that design"
At least THREE COMPANIES offer a variable compensation at time of posting
Independent Life has offered a Duration Based Compensation Model* since 2021. Independent Life's Duration Based Compensation model pays from 2% to 6% depending on the duration of payments. For more details about the Duration Based Compensation Model please click on the link below. Upon information and belief the agency in question is appointed with Independent Life and structured settlement annuity applications have been placed with Independent. Raises at least one obvious question.
Funding Agreement non qualified structured settlement solutions are available through Corebridge Financial subsidiaries American General (everywhere except Pennsylvania and New York) and United States Life Insurance Company in the City of New York (New York). Provided there is satisfactory due diligence, variable fees are possible. Available since 2020.
Delving deeper into this topic. The following links address the topic in more detail
Last updated January 20, 2024
