This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Write an effective settlement demand letter.Get tips on structure, key elements, and a free template to negotiate your legal disputes. Sample demand letters to insurance companies and hospitals in personal injury, medical malpractice, wrongful death and other civil tort claims. Include all necessary documentation. Be concise, but include everything that is necessary, including full documentation of your injuries and lost earnings. The purpose of this letter is to request full reimbursement for my family's personal property that was destroyed (date of loss).