“Structured Settlements”

That’s right!

The phrase “structured settlements” is the most expensive Google Adword in the solar system according to Harvard behavioral economist Sendhil Mullainathan.

On January 31, 2012, National Public Radio’s Marketplace segment featured a revealing conversation with Professor Mullainathan entitled “How Google searches are leading economic indicators.”

What is a structured settlement?

In a few words, a structured settlement is a method of compensation for a personal, physical injury claim whereby the aggrieved party receives his/her settlement over time as opposed to a single lump sum.

More simply, if it’s not a lump sum, it’s a structured settlement.

A structured settlement can be an excellent claims resolution option for everyone involved since the parties can match future dollars with future needs and any negotiated settlement can be specifically tailored to the injured party’s unique situation.

And because all future payments are 100% income tax-free if properly implemented by a licensed, appointed structured settlement expert specializing in these types of transactions, structured settlements continue to be tremendously popular with claimants, parents, courts, plaintiff attorneys, claims professionals, the United States Government and numerous disability advocacy groups.

The Finn Financial Group happens to be one such firm specializing in these transactions.

What is NOT a structured settlement?

Almost everything you see on the Internet when you do a Google search for “structured settlements.”

Over the years, the phrase “structured settlement” has lost its original meaning in the eyes of the public due to a secondary market that has emerged blurring the lines between what a structured settlement is and what a “factored” structured settlement is.

Without going into an inordinate amount of detail, there are companies who buy recipients’ structured settlements rights “at some ridiculous discount” according to Prof. Mullainathan and then re-package those payment rights and sell them to investors for a profit.

The Finn Financial Group does not buy structured settlement rights nor does it sell “re-packaged structured settlements.”

What is a Google Adword?

For a price, businesses can pay to have certain words and phrases rise to the top of the Google search engine.  Every time someone clicks on that website or Adword, Google makes money.

Supply and demand causes certain words and phrases to be more expensive than others.  These sites are easily distinguishable from the non-paying sites because they are highlighted at the top of Google page one.

Depending on the popularity of the topic, the price of Adwords may rise or fall.

Dr. Mullainathan maintains the popularity of Adwords can be used to gauge what’s going on in the economy.  Hence the term, leading economic indicators and the subject of the interview.

The Popularity of “Structured Settlements”

Which brings us full circle to the topic at hand.

As of yesterday, it costs $50.00 per click to buy “structured settlements” as an Adword, the most expensive one found to date by Dr. Mullainathan.

That’s $50.00 per click whether or not anything is ever purchased.

(Dr. Mullainathan and interviewer Kai Ryssdal even have some fun discussing what might happen if a bunch of people simply started clicking on these sites with no intention to purchase or sell anything)

Summary

Structured Settlements Are Leading The Way

In a major, if very odd and roundabout way, this completely validates the structured settlements industry.

For those currently receiving structured settlement benefits or those considering whether or not a structured settlement is a wise choice, you might want to ask yourself this:

“If someone is willing to pay this much money for a simple Adword to get their hands on my structured settlement, doesn’t that mean these things are really valuable and don’t they probably make a lot of money off of me?”

We believe the answer is a resounding “Yes.”

And just like it would never make sense to sell any asset below market value, clients are urged to think long and hard before forfeiting their valuable structured settlement rights.

Caveat vendor!