Opportunities with Structured Settlements (a lucrative niche market)
By: Roccy DeFrancesco, JD, CAPP, CMP
Webinar on Recording
To sign up for this webinar, click on the following: https://advisorshare.com/structured-settlements
I’ve seen both speakers in action and they are terrific (a webinar you don’t want to miss).
To be compensated in this structure, all you need is a life insurance license.
99.9% of advisors in this industry are not helping clients with Structured Settlements (SS)
What does that mean? OPPORTUNITY!
What is an SS? It’s a contract to pay a GUARANTEED income stream for a period of years.
Who uses SS? Most Personal Injury attorneys you see with big billboards in your local town!
How do Personal Injury attorneys use SS? The best way to explain an SS is with an example.
-24-year-old female was burned over 90% of her body due to a car defect resulting in an explosion.
-$4.3-million-dollar settlement netting the client $2 million after fees/expenses.
Instead of taking the lump sum…a Structured Settlement payment was set up for $100,000 guaranteed every year for life.
Why do Personal Injury attorneys use SS? To prevent the client from pissing away the money.
–30% of settlement recipients spend the settlement money within 2 months
–60% within 2 years
–90% within 5 years
A client who has lifelong medical expenses can’t afford to waste the money (frankly 95% of those in accidents who received settlements can’t afford to waste the money).
What kind of compensation is paid to referring advisors?
A referring advisor can make 1.5% as a referral fee.
So, in the example, the advisor could make up to $30,000.
Tax-free payment stream
The payments are TAX-FREE to the recipient if payment is for a physical injury settlement.
What other clients can use a structured settlement?
-Attorneys looking to defer large contingency fees (ironic)
-Environmental/mass tort cases
The speakers for this webinar are thought of by many to be the best structured settlement brokers in the industry. They help in 911 cases, coal mine explosions, airplane crashes, Paxil and Jeffery Epstein cases, the Surfside building collapse, the Las Vegas shooting, and more.
Working with Local Personal Injury Attorneys
While this is a niche market, it’s a great concept to learn and one you use to hit on your local personal injury attorneys. They are doing these now, but it’s a competitive marketplace. There is a HIGH likelihood that by working with a “better” SS broker, you can achieve better results for their clients (and you, as the advisor, can pick up a new referral source of clients).