Choosing a Buyer of Structured Settlement Payments

Are the biggest names or buyer of structured settlement payments the best? It certainly could be the case, depending on your circumstances. Or, are the other big or mid-size brokers better than the ones we all know and hear of?
Let's deal with facts!
Fact 1: The biggest companies have the bigger overhead
Fact 2: The bigger companies have a bigger staff (could be good, could be bad)
Fact 3. It's fact, you wouldn't want a buyer of payments who isn't smart enough to keep overhead down and money in your pocket.
Now do the accounting!
1. The advertisements and budget is coming out of the seller of structured settlement payments pocket, yours!
2. Does it add up?
Choosing a buyer of structured settlement payment company is indeed a personal decision. Use your own intuition. If it's the bigger company for you then great! If it's the other major leaders or buyer of payments companies that interest you, then great. The main thing, your biggest priority, should be getting the best offer for your structured payments or annuities.
If you are in solid need of funding, and have been considering selling off your monthly payments, do your research. The money is yours, so remember, you deserve to get the largest quote, not settling for less.
Make sure you feel comfortable that you are not being pressured or sold too quickly. Make sure that you will choose the best buyer of structured settlement payments, by checking the reputation of the companies you are getting quotes from.
Once you get your quotes, talk to each of the buyers. Use your own intuition to select the best buyer. Add up all the statistics from your own personal research, the facts, and accounting so that in the end you will be sure you are making sure you are getting the most amount money instead of less.
It just makes sense to add it all up. This could be the one and only time in your life that you can get a large cash lump sum structured settlement. You could be in financial debt up to your ears, and need a way out. Like everyone we have bills to pay and need to be smart with our money.
Or, you may want your money now instead of later, for investment or a new business idea. Choosing the right buyer of structured settlements payments is a very important decision, it's also a very personal one.

Structured Sale Annuity Tax Minimization Strategies

Assuming asset appreciation, capital gains tax will be due when selling a property, business, or business practice in the year of the sale. In most cases, the taxable gains will amount to a substantial sum of money owed by the seller in a short period of time.
For those who are selling a significantly appreciated asset (business interest or property), the federal tax liability can be very burdensome. A structured sale annuity helps to spread the capital gains over several years so as to alleviate a taxable windfall while also providing reliable payments and income to the seller.
How Does a Structured Sale Annuity Work?
The seller and the buyer agree upon a purchase price for the asset. As oppose to the buyer (or bank) paying this amount lump sum to the seller, the funds are pledged to an assignment company. This initial act avoids constructive receipt for the seller and satisfies current I.R.S. rules and regulations.
The assignment company then purchases an annuity with the proceeds from the sale. The annuity is structured in a agreed upon matter to make future payments to the seller. The seller has several options when structuring the annuity and can tailor the payment stream to his needs.
The buyer is released from any future monetary obligation as he has made full payment for the asset to the assignment company. In this way, the seller will not have to rely on the ability of the buyer to make future installment payments.
In order to qualify as an installment sale, the buyer must take at least one payment in the first year. Thus, the payment stream cannot be deferred for longer than 12 months. All funds do not need to be assigned to the annuity however. In some cases, a portion of the sale is taken lump sum and another portion is structured over time.
There are three parts to a structured sale annuity:
1. The non-taxable recovery of the asset (cost basis)
2. The gain or profit from the sale (appreciation)
3. Earned interest from the annuity account
The future annuity payments will consist of an equal portion of each part. The seller will receive a portion of the cost basis, asset appreciation, and interest each year (or month) for the duration of his structured agreement. Those who are looking to establish periodic income payments during retirement can benefit from this arrangement after selling a business, property, or practice.
Why Use An Annuity Account?
Annuities are valuable based on their guarantees and safety. In times of market turmoil, a periodic annuity payment from a highly rated, well capitalized insurance company will provide the peace of mind, safety and regular income needed by most investors.
There are very few companies underwriting structured sale annuity accounts, but those that do are some of the largest and safest in the world. The investment interest gains provided by these accounts will vary depending on market conditions, but they will always have a fair minimum guarantee.
The periodic annuity payments are guaranteed. Should the seller pass away prematurely, then the payments will continue to a named beneficiary as established by the annuity contract.
Tax Advantages of a Structured Sale
A structured sale annuity provides the advantage of simply spreading out capital gains over several years. As oppose to writing a large check to the government over one or two years, those gains will be held in the annuity and earn substantial interest over time. That interest is then payable to the seller each year.
Should the seller have future capital losses, then they could be written off against the portion of capital gains that are withdrawn from the annuity each year. Future non-qualified stock trades or property sales for losses could count against the capital gains distributions from the structured annuity.
In summary, an installment sale will not be appropriate for every situation, but for those with significant asset appreciation who are looking to spread out their capital gains while also providing a guaranteed stream of income will find that a structured annuity sale can be a very valuable investment plan.

A.M. Hyers has been working in the insurance and investment industry for over fourteen years. He owns and operates Hyers and Associates, Inc. an independent insurance and annuity agency doing business across the U.S.
His agency specializes in retirement planning, wealth transfer, and tax minimization strategies. They work extensively with structured annuity and life insurance policies for the purpose of transferring and maintaining wealth.

Lump Sum Benefits With Structured Settlements

If you are due to start receiving structured settlement payments over a long period of time, chances are you would rather be paid out all at once. In a lot of cases, a person who receives a settlement offer in a claims case or personal injury suit is banking on the money awarded in court to offset their medical, legal, and sometimes mental health bills. A structured settlement disbursement simply is not an option for most recipients that are under the gun to cover such expensive costs immediately after they've gone through an expensive legal battle for their winnings.

In these cases, there are great options to sell structured settlement awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. When selling your structured settlement, the first thing to realize is that you will only receive most of your settlement offer in a lump sum payout. The buyer will charge the settlement recipient a fee for exchanging their money with your disbursement (which may last months or years), meaning they will need to offset the cost of this delayed investment by holding onto some of the funds you've been awarded.

Long Term Security, With No Surprises.

To recipient, who may buy the it is the long term income source that may not bring any kind of surprises to you. Payments may come every month during running time of a plan. An only risk is, that company that needs to do payments may become bankrupt. Profit depends on time, while you may buy the structured settlement. As settlements are the investment instruments like other, general economic situation may affect greatly on prices. In case, you can buy that as bargain, then it is one good deal.

How Payments Are Calculated?

As said, are totally based on court decision and in case, reason is compensating a few damage that someone has caused to another, target is paying for future injury care. Payer is generally the insurance company. In these cases, there are great options to sell awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. In these cases, there are great options to sell awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. When selling your structured settlement, the first thing to realize is that you will only receive most of your settlement offer in a lump sum payout. The buyer will charge the settlement recipient a fee for exchanging their money with your disbursement (which may last months or years), meaning they will need to offset the cost of this delayed investment by holding onto some of the funds you've been awarded.

Negotiate Structured Settlements With Your Creditors

Negotiating structured settlements with your creditors is a simple process, always stay in touch with them and keep a log of all telephone conversations and correspondence from them. Make sure if a settlement is struck with one of your creditors to have the terms in writing before you make any payment, this written confirmation is called a Settlement Letter.
In most cases, in order to negotiate structured settlements with creditors a consumer must be at least 90 days behind or delinquent; most original creditors will not listen to or partake in negotiations until then. The best time to settle a credit card account is while it is still with the original creditor and the delinquency time has not exceeded 180 days, arrangements can be made during this time for savings of over 50% on the total debt in most cases.
Staying in touch with creditors during the negotiation stage is a plus and keeping a log of all telephone conversations and correspondence from them is a must. Send all correspondence to creditors via certified mail with a return signature card. If a settlement is agreed upon a settlement letter must be provided before any payment is forwarded, once this letter is received it is OK to make a payment over the telephone only to an original creditor. Never make a payment over the telephone to a collection agency, as they do not follow the same standards that creditors do.
Always negotiate from a standpoint of power, as if the funds were always available to pay for a deal in a lump sum payment. Creditors like the fact that they will get their funds in one payment, always negotiate by keeping them on the edge, not the other way around. Always begin any negotiation by offering as little as possible, usually about 20% or 20 cents on the dollar. Work this percentage up very slowly and never look too eager to settle, never tell a creditor the funds are readily available; always tell them you may come up with them through the help of friends and family. Always set payment or payments for settlements on a date when the funds will be readily available not beforehand.
The help of a strong Hardship Letter explaining why the accounts have fallen behind will always be a big help, these hardships can include medical, loss of income, bankruptcy among other reasons that will carry heavy weight when it comes down to being awarded a reasonable discount on credit card debt.
To sum this article up, always negotiate structured settlements from a standpoint of power; never let your creditor see you sweat; stay calm and let them make as many offers as possible. Never tell them funds are readily available, draft a strong Hardship Letter and never pay for a settlement with out a physical Debt Settlement letter.

Structured Settlement Sales Professionals

Introduction

The main way to providing quality services to clients in the annuity sector is to have structured settlement sales professionals who are able to guide clients with whatever query they may have. Personality and approach towards the client is considered very critical in business. The client should not feel he is being forced to a corner but he is gaining vital information from the sales person representing a company. Sales men have unfortunately built a bad reputation since they have been associated with badgering clients into making decisions they have not thought over, "just to get that sale."

Sales Professionals

This attitude has makes many people avoid sales men altogether and will even reject a product they require just to get the salesman away from themselves. Top companies in the business will enroll only the best structured settlement sales professionals who have receive professional training and instruct them not to force any client in to making a decision. These forced decisions do not work to the interest of the structured settlement buyers; in turn it gives the company a bad name in the market. Clients affected by the badgering clients tend to spread bad experiences they had with a company's sales men which spreads and affects its future business transaction.

Since the sales man plays a major role between the companies and the client there are some problems that need to be identified and solved to stop this downward trend that grips the sector. The main problem identified being target pressure to make sales, this pressure that companies exerted on salesmen makes them force clients in to these decisions.

Remuneration Factor

Salary/wages is another major constraint that makes them push for more sales. Since companies promised commissions for added sales they sparked a vicious cycle that ended up tarnishing sales men reputation and image in the general society. To stop this from happening companies have adopted radical changes that are aimed improving and changing attitudes of the public towards structured settlement sales professionals.

A different approach has been adopted today with companies diverting attention from door to door to marketing and concentrating more on marketing services and products on the internet. This reduces the pressure on sales men who then can concentrate on advising the clients correctly rightly without placing pressures of targets on their minds.

Current Scenario

Today there are more people spending time on the internet and it provides a wider audience to advertise to as well as being cheaper for the business. These factors have been used by many businesses today to improve sales since it not only advertises you company nationally but internationally as well. Most people who have access to the internet will resort to it when they require selling or buying a product. So instead of looking for them the game has changed to advertising so that when they look they can find you on Google first page.

Selling Structured Settlement Payments - What Is The Process?

Your bills are piling up and you don't know where the money is going to come from. You have settlement money flowing in, but it's just not enough each month to cover your family's needs. You decide that now is the time to get a lump sum of cash for your future structured settlement payments. Now what? Educating yourself on the process of selling your structured settlement will position you in the best possible way to maximize your offers.

The first step in the process is to determine if selling your structured settlement is the best solution for your situation. Have you exhausted the more traditional sources of raising cash? If your answer is yes, the next step is to start getting offers.

You next need to gather the important information regarding your structured settlement. This will be needed to get offers. The most important information is the name of the insurance company, the amount of each payment you are set to received, and the date of each payment. This information is required for the calculation each company will perform to give you an offer. It is also helpful to start gathering your actual structured settlement agreement from the court settlement, the actual insurance contract from the carrier and the benefits letter. The benefits letter will list in detail every payment you are set to receive and on what date it will be paid.

There are really two major ways to find the factoring companies that will purchase your payments. The first is to look for the television advertisements that seem to run constantly on some of the major cable news channels. These are definitely the big players in the business of buying structured settlements. One thing to remember is that those television ads can be expensive. You have to wonder how that can affect the offers they are willing to make. The other major resource is of course the internet. Doing a quick search on Google will show you just how vast the number of companies that are out there. The internet is a lower cost method for the factoring companies to reach potential clients wanting to sell their payments. It is also an efficient and effective way for you to quickly get multiple offers for your settlement. The lower overhead of the web-based companies should allow them to be more competitive with their offers.

Once you find an acceptable offer, that company will usually send you an initial application along with a list of required documents. Again, you will need to provide your settlement agreement, benefits letter, a copy of your annuity contract, two photo ID's, possibly a qualified assignment form, and an order for minors claim if you were a minor when your settlement occurred. The faster you can turn this information around, the faster the process from start to finish.

The company buying your settlement will perform a background check looking for any outstanding liens or judgements that may restrict your ability sell. Once your information is reviewed and found complete, the factoring company will send you closing documents to sell your structured settlement. Once the closing documents are received and reviewed, then the company buying your settlement will now schedule a court date to complete the transfer. Every state regulates the sale of structured settlement payments. It is necessary on every transaction that a judge review the transaction and approve. This is for your protection as well as the company buying the payments.

Once the court approves the transfer, a copy of the order is sent to the insurance carrier. Once the carrier acknowledges the transfer of the settlement payment, the company purchasing your structured settlement payment will wire or mail your money. This is just a brief overview of the process, but should be enough to get you off to a good start.

What Are the Pros and Cons of Structured Settlements?

What is a Structured Settlement?

Normally, when someone wins a judgment or settles their lawsuit the defendant is obligated to pay you the settlement amount in one lump sum. For example, if you contracted a disease as a result of using a contaminated drug and won a judgment against the pharmaceutical company, you might settle out of court for a million dollars. That is one option. Another option is a structured settlement. This would pay you in installments over a specified period of time rather than a lump sum.

The U.S. has put into place structured settlement laws at the federal and state levels. At the federal level these include components of the Internal Revenue Code. Those at the state level include structured settlement laws that deal with periodic payment of judgment statutes. These settlements must take Medicare and Medicaid laws and regulations into consideration. Settlements of this type are endorsed by most of the country's biggest disability rights groups, including the National Organization on Disability and the American Association of People with Disabilities.

Installment payments are able to be structured in a such a way to meet your needs and protect you against the effects of inflation. They vary from types with a simple yearly payment to more complicated arrangements that consist of an initial lump sum payment, deferred payments, monthly indexed installments, and certain provisions to provide for the death or future care of the insured.

Normally, the defendant purchases an annuity for a specified dollar amount paid up front. The annuity allows for scheduled income payments on a regular basis as determined by you and your attorney based upon the conditions of the structured settlement.

What are the benefits of a structured settlement?

One important benefit is the ability to avoid taxes. Properly set up, a structured settlement may reduce significantly the plaintiff's tax burden as an outcome of the settlement, and may even be tax-free in some cases.

The structure can also protect you from have the settlement funds dwindle away, when they are used to pay for needs or future care. Occasionally a settlement can be structured to provide protection from yourself. Some people are just not good with finances, or cannot say "no" to family members who want to share in the settlement. If you are not disciplined with your spending, a legally agreed structure may help you ensure the money is not spent quickly, but doled out over a period of time.

Minors may find a settlement of this type to be beneficial as well, since this type of settlement provides for certain expenses during their youth and another disbursement for college tuition, and more disbursements during adulthood. If you are injured or have special needs that are long-term in nature, you may benefit from periodic disbursements to pay for medical equipment or specialized vehicles for mobility.

What are the potential disadvantages of a structured settlement?

For one thing, once you agree to a settlement, you are bound by its terms. You cannot change it at a later time. Therefore, it's crucial to be represented by a good attorney who will assist you in negotiating a settlement that is tailor made to fit your individual needs, such as inflation protection. If your life expectancy is shorter, you may prefer a settlement that provides a guaranteed minimum payment, even if you pass away before the guaranteed period expires. This can provide protection for your family and beneficiaries from being left bereft of income.

One other potential disadvantage of a structured settlement is that unforseen economic changes may make the annuity payments too small. Or the annuity may be placed with brokers who lack enough protection for insolvency.

Properly set up, a settlement structured to meet your needs can be very effective. However, you need to ensure that you are adequately informed before acting. Nothing can replace the good advice of a competent attorney or financial advisor.

Why Choose A Structured Settlement

This is of course a brief explanation and you can always visit the Internal Revenue Service website for more information. One of the hard facts about structured settlements, as with so many things, is that they are primarily about taxes.

Structured Settlement Tax Benefits

If you were injured in an automobile accident and received a settlement of $250,000 from either the other person involved in the accident or their insurance company, the settlement is tax-free. However, if you then decide to invest that $250,000, any earnings from that investment are taxable.

On the other hand, if you opt for a structured settlement in lieu of the $250,000 in cash, you will then receive the money over whatever period of time that you decide, and those payments will be tax-free. This will convert your after tax earnings into a return that is totally tax-free.

Payments Over Time vs. Lump Sum

Although settlement claims are won in the courtroom, most are usually settled out of court. The most commonplace scenario is that the insurance company or obligated party will pay you the amount agreed upon. This payment can come in a one time payment also known as a lump sum, or you can elect to receive installment payments over time. Depending upon your circumstances, a structured settlement can be a wise choice that enables you to maintain a constant income stream over a designated period of time.

The payment plan can and should be your decision. It can be simple annual payments or you can receive a certain amount as a down payment with the remainder paid to you as monthly payments.

There are many reasons for people to opt for a structured settlement. The most obvious reason is to set up a source of continuous income, and secondly the tax advantages associated with this type of plan. A structured settlement will substantially lower the amount of taxes that you will owe.

Does A Structured Payment Plan Make Sense

A structured settlement is a well-organized and much better way to receive any type of money from your claim. However, it is entirely up to you to decide whether a lump sum or payments over time will work best for your situation. That trip around the world or a few months in Hawaii seems like a dream come true, but using your money in a calculated and structured plan that will provide financial security and a steady income for your family really carries a lot of weight.

There are some interesting statistics you should also think about. It has been shown that about 30% of the people who have chosen to receive their settlement as a lump-sum instead of a structured payment plan have spent it within three to four months, and more than 80% have spent their entire settlement within the first five years.

A Structured Settlement

Process for Receiving the Money

After a few years of payments a structured settlement company may come into the picture. They will suggest an agent who will buy the structured settlement contract at a lower price than the settlement value. The complainant will need to do this in order to acquire a lump sum of money. If the complainant neglects this matter, the company may refrain from repayments as stated in some settlement contracts. Therefore, the complainant must read the contract to make sure they are following rules set down.

The structured settlement company will be happy if you follow their structured settlement contract. Even though, the contract may be sold for a lower price but you could still gain a large amount of money if you choose to be paid in a lump sum of money. On the other hand, you can also search for a note buyer to fix the issue related to your contract. The note buyer earns their profit for a longer period gaining interest on the contract but they can easily sell a note. They can also reinvest in the future.

Five Things to Consider in Selling your Settlement

Since you already know the process for receiving the money, its time to know the things that are needed to be considered when engaging in structured settlements. Benefits and disadvantages are the first things to be considered when selling.

1. Legal Restrictions

This is the nature of some settlements contracts, so read carefully and have a legal representative look it over too. Just like a legal document, there are legal restrictions that need to be followed by both parties.

2. Contractual Restrictions

Aside from having, legal restrictions some contracts will be valid only for one client. Therefore, it would be difficult to resell them once the contract is over.

3. Tax Considerations

He or she may pay less tax or even be tax-free totally. He or she may pay less tax or be tax-free when he or she decides to be paid by installments. On the other hand, if he or she decides to go for a lump sum of money, he or she may be subject to tax liability since he or she will receive a large amount of money.

4. Low Offers

Since you will receive a contract or a note, you need to seek for low offers. To seek low offers, you can compare prices and choose the lowest price.

5. Seek a Lawyer or an Accountant

When reviewing documents you need to find a good lawyer that specializes in these types of contract. By letting a lawyer review the contract, you will be rest assured that your rights are being protected in case of future complications. If you needed the sale of your structured settlement to be approve in the court, your lawyer can lend you a hand in the process. On the other hand, an accountant can help you decide between the options of installments or a of lump sum of money. They can help you setting up a reasonable price of the structured settlements.

A Structured Settlement Is Beneficial To All

Prior to the advent of annuity settlements as a type of settlement payments, defendants were often actually burdened by the fact that they had to accept the lump sum amount of their compensation all at once. Even when the defendant is a large company, extracting large sums of money from their funds to satisfy the settlement was definitely not a favorable business practice. The same holds true for the plaintiff, who is suddenly burdened by having to come up with an effective and properly managed plan for their finances.

There are also many instances of a plaintiff or plaintiffs squandering their settlements. Spending sprees and poor judgment have caused many recipients of cash settlements to end up in poor financial situations. Hence, the structured settlement was a good option to overcome the drawbacks off a one-time cash payment.

The advantages associated with payments over time definitely outweigh the disadvantages, and it is very commonplace for many cases involving loss or injury to be resolved by the implementation of a structured settlement. In most cases, when the plaintiff does request a lump sum settlement, they are required to prove to the court that they have reasonable and important major expenses. The type of expense most often quoted are associated with career moves, high medical expenses and also costs of education for children.

These safeguards subsequently make a structured settlement beneficial to both parties, defendant and plaintiff. Of course, you may also opt to sell your structured settlement. You are entitled to, at any given time; sell the settlement to convert it into lump sum, but you might not be able to convert the lump sum into structured payments as easily.

As previously mentioned structured settlements are favorable to all parties involved in the dispute or case. The plaintiff will realize several distinct advantages with the acceptance of a structured settlement as opposed to a lump sum arrangement. As far as the defendant is concerned; it is always easier to pay compensation in regular installments than to be forced to pay all at once, especially if the amount is significantly large. The payment plan option also decreases the legal and administrative expenses that the defendant has to pay. This type of agreement is always more appealing to the court also because the time spent on a trial is minimized.

The bottom line is simple, compared to a one-time large cash payout; a structured settlement is a good user-friendly solution for everyone involved. That being said, there are still some situations where a lump sum payout is the better course of action.

Structured Settlements - Pros and Cons of Structured Settlement Over a Lump Sum

An initial response for most people who are faced with a large sum of money is to take the money and run. When finalizing details of a structured settlements agreement stemming from an injury sustained by someone's negligence, it would be in your best interest to stop running and consider your payout options.
One payout option is to receive the award amount in one lump sum and the other is in a form of a structured settlement in which you would receive scheduled payments in your lifetime. There are pros and cons with both options. By comparing both options, it can assist you in making the best decision that suits your personal needs.
Pros and Cons of a Structured Settlement
Pros - There are many advantages to selling, however, one would have to agree that security has to be one of the best aspects. Knowing that your payments would be received as scheduled brings a sense of peace and security. This is especially true, if you have been disabled as a result of your injury case.
Pro - Another benefit of choosing a structured settlement is that there is no tax charge at a state or federal level. There are no concerns about potential tax leaving you with more money for your investments.
Con - One of the negative aspects with a structured settlement is that with this type of agreement the only way to change your decision is to have a structured settlement company buy your payments. Many people stress with having to go through another process with their settlement. Plus it can come with a high price.
Pros and Cons of a Lump Sum Payment
Pro - Having a lump sum of money allows you to pay off acquired medical bills, attorney fees, and other expenses associated with being injured and possibly out of work.
Pro - Choosing a lump sum of payment will also provide you with a significant amount of money to put in investments. Making high yield investments that perform will is ideal for receiving a lump sum payment.
Con - The temptation of a lump sum of cash often falls into play for many people. The goal is to budget but a lot of people tend to overspend and prematurely run out of money.
It is your decision to balance out the pros and cons of both options. The key is to stop running and consider both options so that you can make the best decision for your future needs. The pro's and con's of selling structured settlements are as varied as the individual. When you're ready or needing to sell a structured settlement, like anything else you must consider the bad and the good.

Benefits And Safeguards Provided By The Structured Settlement Protection Act

The Structured Settlement Protection Act states that certain transactions regarding the sale of a structured settlement need the approval of a judge in your state's court before they can be completed. It is also stipulated that the responsible insurance company making the payments need to be part of the process prior to the sale.

Prior to the inception of the protection act it was not necessary that insurance companies be informed of change of ownership of a structured settlement, and quite often did not know of the change until after the fact.

So, whether you are comfortable with the payment setup of your settlement or are considering selling your annuity, it would be in your best interests to learn more about the protection act.

Requirements of the Protection Act

The act now requires that any interested parties be notified of a sale or partial sale of a structured settlement twenty days prior to any court hearing seeking approval for any changes.

Prior review by a judge is required before any sale takes place. This is done to insure that the sale is in the best interest of the person or client receiving the annuity.

This requirement exists for the protection of the client. Before the implementation of the act there were companies that unscrupulously took advantage of many people who wanted to sell their settlements by offering paltry and unfair amounts to purchase their annuities and settlements.

Many clients, either because of the lure of a large lump sum of money or lack of knowledge on the subject, fell prey to these tactics.

Benefits and Safeguards of the Protection Act

The client selling the settlement must disclose the arrangements associated with the sale along with their personal financial affidavit describing their current financial status. This usually must be submitted three days prior to any finalization of the sale or contract signing.

It is now the responsibility of the buyer of the settlement or annuity to disclose all information relative to the purchase and sale of the annuity or settlement, not the insurance company, issuer or client.

A company that is proposing or trying to buy your settlement must also advise you to seek legal advice before proceeding with sale. This also must be given in writing, and must be done before any information can be presented in court,

Once all documents have been signed, the seller or client still has three days to change their mind about the decision to sell.

Strength From Your Annuity After Death

Are you attempting to find some strength from your annuity after death? A loved one has died and left you an annuity. Death benefits can present you security and strength for you or your loved ones. Death benefits can be important if it they are offered as part of an annuity. Annuity death benefits vary with each different annuity type depending on which kind is purchased and the state you reside in.
Contemplation of life after retirement is one that should to be taken under consideration. Figuring out how valuable your annuities are beforehand could be critical.
Immediate annuities have an immediate payout. The death benefit allows the money still in an annuity to go to the beneficiary if the buyer passes in death before receiving the full contract value of the stated annuity. An example is if you bought an annuity with a contract value of $60,000, and used $20,000 in benefits before your death, then your beneficiary on your contract would receive the extra $40,000.
Deferred annuities are those in which the funds from the annuity create an interest return, but the buyer does not receive the payments immediately. They are often bought before the owner decides to retire so the funds have time to increase and earn a nice capital appreciation before regular payouts are received. You're doing the right thing now by performing research on annuities and how they could effect you or loved ones in the future.
Deferred annuity death benefits are generally equal to the money left in the contract plus the interest accumulated up until the owner's death. When people shop around for an annuity, they generally look for the basic segments, like payment structure and annuity type. After selecting an annuity, they can elect to purchase a rider option on the annuity.
Riders not only arrange for their costs in retirement, but also consent for a lump sum payment issued upon death to cover funeral and other expenses. This makes riders a huge advantage for annuity investors.
Riders will inform you in the risks you face. Risks such as ages lifestyle, health condition, and credit report are considered in determining the risk, along with the price of the annuity in order to make money.
If you are concerned about expenses and your family's security after your death, then the death benefit feature in your annuity is an option worth taking into account. By strengthening your security in your death benefits, you also bring strength to your loved ones.

Structured Settlements - Questioning Your Cash Options

The smart decisions we make are triumphs of judgments, while the bad decisions is an opportunity to learn. When it comes to structured settlements you may be questioning your cash options. If you have come into a lot of money, it would be beneficial for you to ask around about a structured settlement to consider for your future care and needs.
One option that may be presented to you by a financial adviser is to propose paying in recommended payments over a time, rather than one fixed sum after a plaintiff settles a case for a large sum of money. These payments can last over a period of time or extend through the claimants lifetime.
These well deserved, much-needed payments can change depending on the claimants needs which can include an immediate payment in order to cover for inevitable damages. Structured settlements are usually made through purchases from an annuity from a life insurance company.
A valuable advantage is tax deferment. If set up in an appropriate manner, it can greatly reduce a plaintiff's tax obligations. An added benefit of structured settlements is that you can assure yourself provided funds for future care and needs.
A disadvantage is that they are a fixed structure. It may not be to your best interests to settle in on this option of payment. You might want to start a new business or buy a new home, but you lack the assets. This keeps you in an avoidable situation until the next payments arrive.
Also, structured settlements do not work smoothly with investments. A lot of typical investments give long-term return than with annuities provided by the structured settlement system. In this case, you would be better off opting for a lump sum settlement.
Learn the availability of benefits that structured settlements can give you that best suit your needs. Ask all the questions to find out what is your best option. After all, one of the most important questions may be the one you are not asking. You can find out if a cash option for a structured settlement is best for you by seeking professional advice.
Information is a source of learning, but unless it is organized, processed, and available to the right people for decision making, it is more a burden than a benefit. There are decisions to be made if you have been a victim as a result of a wrongful injury. As a result of your injury, you may be awarded a settlement. If this is the case, and you still have questions regarding your award then you should obtain more information.
What is a structured settlement? They are set up when an insurance company or advisor offers you a cash settlement out of court in exchange for dropping the suit you have brought against their defendant. Through the settlement you would receive periodic instead of one lump sum.
Where does the funds from the settlement originate? The defendant in the case purchases an insurance annuity which is basically an investment with the insurance company. The idea behind this investment is that it will grow providing them with the funds they need to meet your financial obligations.
Are there any restrictions placed on structured settlements? There could be, it depends on the type of your contract. For example, if the law suit was on behalf of an injured child, the company may insist the funds only be used to toward the child's education. Or if the law suit was on behalf of an employee, the funds can only be exhausted on further required medical supplies or therapy.
Is there any way to terminate the structured settlement? It depends. Your original settlement agreement will have a termination date, when it has been paid. Or you can approach a structured settlement agency to purchase the annuities. The agency will take a share of the annuity and you will get the remaining funds. This allows you to also change to a lump sum if it better suits your needs.
A professional adviser is available for all your structured settlements questions and concerns. They can assist you in determining what is best for your situation. The information you obtain can help you in finding the best answers for your deciding on a structured settlement. The right answers can help you see the potential.

Tips on the Structured Settlement Act

The Structured Settlement Act offers guidelines to help ensure the integrity of the settlement companies that offer them. The main purpose is to make sure that consumers don't get taken advantage of. There are many loopholes in these legal guidelines that can make it a slippery slope to say the least.

With selling your settlement you have to be willing to take a lump sum for less than the overall value of your settlement. The amount of money that they offer you can be much less than you would otherwise be entitled to. You aren't obligated though to agree to the money they are willing to offer so it is always a good idea to look around for a good deal.

The Settlement Act states that the recipient of the settlement and the company buying it aren't the only people that are part of that decision. The entity that owes that settlement has to agree to it as well. The state court in that jurisdiction also has to review it and agree to it.

Typically, the settlement company wishing to purchase the structured settlement will take care of all that paperwork. They will complete the necessary forms and file them with the right court so that the settlement can be approved. If it is denied they will help with an appeal process.

It is important to look into the laws regarding the Structured Settlement Act in your area as well. The laws can vary according to which state you are in. With some settlements they are designed to prevent you from being able to take a lump sum cash payment for it. Always look into these things before you pursue a structured settlement for your own protection.

The main goal of the Settlement Act is to ensure consumers are able to get the money they need when they need it. Sometimes the entity owing the funds can go out of business or bankrupt. Then there would be no way to continue getting the funds through an annuity. The payments can help to reduce the chances of not getting the funds a person is entitled to.

The Act though strongly recommends that you get advice from your attorney and a financial advisor. This will help to reduce the chance of getting taken advantage of when it comes to the amount of money offered for the structured settlement. This is because it may be legal to offer a low amount for it but that doesn't mean that it is ethical to do so.

Advantages of a Structured Settlement

There are many advantages of a structured settlement that you may wish to look into. When you have this type of entity in place, you will get a payment each month as part of the settlement process. However, that monthly amount may not be enough for you to adequately live on.

It can take a great deal of time to wait for such a settlement to be approved. During that period of time a person may get behind on their mortgage, car payments, credit cards, and more. Some have large medical expenses to cover every single month as well. If the bills have gone to collections you will now have negotiating power.

Most of the collection companies out there will settle for a fraction of the cost if you can pay it off at once. They would rather get a portion of the money you owe them and settle it than to continue trying to get it month after month. If you owe $30,000 in credit card debt you may be able to settle it for $18,000 once you get your structured settlement funds.

With a structured settlement you can get a lump sum payment. This amount will give you the cash up front that you need to get your bills paid. It can also give you the funds you need for remodeling, buying a home, getting a vehicle, or even taking a vacation. You won't have to struggle from month to month waiting for that money to be paid out over time.

You may be eligible for a structure settlement that gives you enough of a lump sum payment to take care of things and to ease your financial burden. Then you can go back to monthly payments in the future. It all depends on what deal can be worked out and the overall dollar amount of the settlement.

Investing funds from a structured settlement can be a great way to save money for the future to. You may want to put some of it into stocks or bonds. There is also the possibility that you may want to start your own business. With a structured settlement you can have the capital you need to get it in motion now. You won't have to wait until you can save up the funds to move forward with it.

Many people agree that they would rather have the money up front than a small portion of it every month. If you fall into that category then you should take advantage of a structured settlement.

Structured Settlement Company - Where and How to Find the Best Company

If you want to obtain a structured settlement it is wise to look around at many companies. Not all of them operate the same or will offer you the same cash value for your settlement. You aren't obligated to commit to anything when you ask for a consultation.

These are free so you should obtain at least three of them. That will allow you to compare what they offer and make a good choice. You can find structured settlement companies locally or online. Keep your options open and if you know someone that has done such a settlement ask them who they worked with.

You want to ask a variety of questions when you work with a structured settlement company. First, you want to find out what will be the tax issues. Sometimes they can get those taxes deferred but not always. You want to find out what other types of options will fit into the structure of it.

For example will you only get a one time lump sum payment? Will they offer you a lump sum annually for a certain amount of years? Will you get a lump sum and then down the road monthly payments again? You want to look at all the options as well as what will get you the most money overall.

How long will it take to get the structured settlement completed? Many companies out there can get the process done quickly. If you are in a crunch for money this may be very important to you. Find out if they assess any fees for the processing too. Always find out what those fees are and why they apply.

You want to make sure you understand the legalities of the structured settlement that is offered too. It isn't a bad idea to have an attorney to look it over for you as well. Then you can make sure you are getting a good deal. Never feel pressured into making a decision either. Walk away from those companies that seem to be pushing you to hurry up and commit to working with them.

It is always a good idea to look into the reputation of a structured settlement company too. You want to make sure that you are working with an ethical business that has proven themselves in this particular type of business. You want to avoid any possible scams so always do your own research as a form of protection.

Structured Settlement Lump Sum - What You Should Know

For those people who are not aware, settlements are becoming more popular today because a lot of people are often being forced to turn to these settlements. These structured settlements arise when a person realizes that he/she does not have enough money to pay a particular settlement; in addition, a person is also allowed to pay the settlement over a certain period of time that will help him/her hurdle difficult situations regarding financial status. A lot of people, however, are not aware that a structured settlement lump sum can actually give them certain benefits that they can never possibly think of; because of this, this article will give you some ideas on the benefits of a lump sum.

One possible benefit you can gain from a structured settlement lump sum is that you will be able to use this particular amount of cash to attend to pressing matters; one example is to save yourself from all the hassles that your current debts are bringing you. Another additional benefit structured settlement lump sums will be able to give you is the privilege to have a certain amount of money that you can use for whatever suddenly comes up or for emergencies. As a matter of fact, you can even choose to invest this particular amount of money so that you will be giving yourself more ways to earning. These lump sum amounts are also excellent most especially if you are looking for instant cash in times of emergencies and you suddenly run out of financial resources.

Knowing the different advantages that a structured settlement lump sum can give to people is a really beneficial thing because it will truly help you, especially if you are suddenly put in a particular situation where you will need some money that you can spend without putting your financial status in jeopardy. Along with the previously mentioned reason, it will also be good for you to know the various advantages you can get so that you will know how you will be able to enjoy them.

Structured Settlement Cash - What You Should Know

Some people who have been parties to a structured settlement agreement might find that the periodic cash payments are not exactly what they need. Unfortunately, there is not much that they can do to back out of the agreement once it has been legally settled. A structured settlement is an arrangement entered into by individuals who have been parties to a personal injury claim or an employee benefits claim. In these claims, the amount in consideration is often too big for the accountable party to pay in lump sum. And so, through a settlement agreement, both parties agree to a series of periodic payments made for a specific number of years to complete the amount payable to the aggrieved party. It is not unusual for someone holding a settlement agreement to be offered by parties structured settlement cash purchases.

When you are offered with a structured settlement cash purchase, the company is actually offering to purchase your settlement in lump sum. This might seem like a good offer, especially if you have a big purchase or investment in mind or if you need the cash to fund your living expenses. There are, however, some states that do not allow the sale of these structured settlement agreements. You might find that your state laws will actually prevent you from cashing in on your settlement agreement sooner than what is legally agreed upon with your insurance company or your previous employer. This restriction is due to the provisions in the annuities bought to ensure the completion of your payouts that prevent its assignment or transfer to third parties.

While a structured settlement cash purchase sounds beneficial to you in that you will be able to get your money right away, it might do you good to think about what disadvantage such a purchase could bring you. These purchases do not often go down in one sitting. The usual procedure requires that you first agree to the buy out and go through the necessary documentation before you actually get your money from the buyer. In cases when no-name companies are involved, you might not be able to get all your money before the company you are dealing with folds or disappears. It is important for you to know for sure how sound and credible the company buying your settlement is. It would be to your best interest to consult a lawyer before you agree to any purchase.

Structured Settlement Payment - What You Should Know

If you are a party to a lawsuit that entitles you to a large sum of money, you will most likely be offered a structured settlement payment agreement. With such an agreement, the party obliged to pay you, will have to purchase an annuity or an insurance instrument in order to make the periodic payments to you, spread out over a period of time. This saves them from having to come up with the funds to pay you in lump sum once the case has been decided on. Such a settlement agreement has its disadvantages and advantages. You would be wise to go over the pros and cons of entering into such an agreement before you make your decision. While it could be beneficial to you as it assures you of regular income, there are also pitfalls that you would not want to get into after you have agreed to the settlement.

The important thing about a structured settlement payment agreement is that it assures you of regular income. Especially if the settlement is due to an injury that renders you unfit to work, having such an income come to you periodically would serve to ensure regular cash flow as if you are still employed. This proves to be a key advantage for people who might not otherwise be able to manage a lump sum amount to last throughout their lifetime. One disadvantage in this case would be the possibility of not having enough cash in case there is a rise in your cost of living or in the medical bills your disability or injury might require.

It is important to hire a good lawyer when you are negotiating for a settlement agreement. The lawyer would be able to properly advise you as to the prudence of such an agreement. He will also be in the best position to determine whether or not you are getting a fair share of the deal. There are cases, however, when the lawyer has a vested interest in negotiating for a structured settlement payment agreement. In these cases, the lawyers themselves are usually part of or has an association with the structured settlement broker or insurance company where the annuities for the structured settlement is to be purchased. He therefore stands to earn from the deal when the structured settlement agreement pushes through. Remember that you, as the aggrieved party, should get the best deal in the agreement - not your lawyer or any other person or company. Make sure that you take these considerations in mind to get the most out of your settlement agreement.

Buyer of Structured Settlement - What You Should Know

A lot of people are not aware that the structured settlement can be used to their advantage because it can help them gain some profit; this will be achieved when you buy a settlement. It is not known to most people, that a buyer of structured settlement will be able to profit when he/she finds a way to buy the settlement rights at a much lower rate compared to the true value of that particular settlement. It is also important for a buyer to keep in mind that the lower he/she is able to buy other people's settlements, the higher their possible profits will become. However, even though it seems that the only important parties involved are the buyer and the seller, it should also be considered that other participants are also vital.

As a buyer of structured settlement, it is a very important thing to remember that the transaction should only happen if and only if a value disagreement happens together with a price agreement. You should also keep in mind that as a buyer, you should focus on the total value of the settlement rather than the actual amount of money that you need to spend for it. With this in mind, it is your duty as a buyer of settlements to make the seller feel that his/her settlement has a really low value. You will be able to do this by pressuring the seller to sell his/her settlement to you immediately. Another way of also making the seller sell the settlement at a very low price is by making him/her feel that the reason why it must be sold immediately is very urgent. To make it simple, it is your duty to make the seller feel really desperate so that he/she will be forced to lower the price.

With all these strategies kept in check all the time, it will be impossible for you not to gain any benefits from being a buyer of structured settlement.

Structured Settlement Investments - The Reasons To Sell

Have you ever heard of structured settlement investments? If you haven't, there are so many advantages to taking this option. You never have to wait a long time to receive payments from your settlement. This will give immediate money for the things that you need the most.

First of all what are these investments? This is how it works. You may be the recipient of a settlement granted to you by a court. You get this by winning a court case. By winning these cases, you are entitled to a large amount of money. However, there is no way for you to get the entire amount of the settlement right away.

These settlements will take time until you get the entire amount. Some take months, years, and even an entire lifetime. True, this will be steady income coming in. However, what if there an immediate need for cash? There is simply no way for you to cash in right away.

This is when these investments come into the picture. They offer to buy your settlement at a 10 to 30% discount. They do this for long-term investment purposes. You may not get the all of the money from the expected settlement, but it is a win-win situation for both parties. You get a lump of money for your needs, and the buyer gets an opportunity to gain more profit on the long term. This is how structured settlement investments essentially work.

Now, why would anyone want to sell their court settlements? Here are the most common reasons why people opt to sell:

Expensive Medical Treatments Or Procedures

There are some medical treatments or procedures that are not covered by our health insurance. This is when you will need to pay for it. However, you may not have enough money to pay. This is one of the most common reasons why people opt for structured settlement investments. They get to have the medical care needed to fight for their or their family member's lives.

College

We all know how financially straining it would be to pay off college loans. There are cases when people still haven't made a career for themselves and are still struggling to pay off this debt. With these investments, you or your children will no longer have to worry about this problem.

Business Opportunities

You may come across a business opportunity, or you may need immediate cash to save your business. In any case, there is no way to rely on the little money offered by monthly or yearly settlement payments. This is another reason why people opt for structured settlement investments. They get to jump in the bandwagon, or they get to save their troubled business.

Financial Security

There are also a lot of people who need to secure a future for themselves or their families. They may need to pay off loans, or they are trying to avoid applying for a loan. In any case, these types of investments will provide them with more financial security.

Benefits of Selling Structured Settlements Annuities

If you've acquired a structured settlement that isn't providing you with your money quickly enough, you can find choices to suit your needs. You discovered that I can get paid from my structured settlement any time you please. There are various firms just sitting there ready to make an offer for it. It really is good that you will discover several corporations and traders searching to buy your settlement, since this signifies that you have alternatives. This indicates that you are in a position to receive several incredible offers since these organizations are attempting to compete with one another.

When your able to promote your structured settlement, all you have to do to complete would be to check out several organizations that acquire them. Then you are going to be capable to evaluate the organizations to ascertain which is the proper firm for you. Now, it truly is critical to not forget that there are numerous legit corporations on the market who will aid you in marketing your structured settlement, but you will also discover loads of scam artists who are just waiting around to benefit from somebody.

Also, it can be very important to keep in mind that not all businesses are likely to provide identical offers. This signifies that anybody who desires to promote their agreement will want to complete just a little leg work of their own and be sure that they're obtaining the finest offer possible. If twenty minutes of investigation indicates that you simply get to receive $2,000, would it not be of value? Just be sure that you are obtaining the greatest offer.

A Structured Settlement Is Beneficial To All

Prior to the advent of annuity settlements as a type of settlement payments, defendants were often actually burdened by the fact that they had to accept the lump sum amount of their compensation all at once. Even when the defendant is a large company, extracting large sums of money from their funds to satisfy the settlement was definitely not a favorable business practice. The same holds true for the plaintiff, who is suddenly burdened by having to come up with an effective and properly managed plan for their finances.

There are also many instances of a plaintiff or plaintiffs squandering their settlements. Spending sprees and poor judgment have caused many recipients of cash settlements to end up in poor financial situations. Hence, the structured settlement was a good option to overcome the drawbacks off a one-time cash payment.

The advantages associated with payments over time definitely outweigh the disadvantages, and it is very commonplace for many cases involving loss or injury to be resolved by the implementation of a structured settlement. In most cases, when the plaintiff does request a lump sum settlement, they are required to prove to the court that they have reasonable and important major expenses. The type of expense most often quoted are associated with career moves, high medical expenses and also costs of education for children.

These safeguards subsequently make a structured settlement beneficial to both parties, defendant and plaintiff. Of course, you may also opt to sell your structured settlement. You are entitled to, at any given time; sell the settlement to convert it into lump sum, but you might not be able to convert the lump sum into structured payments as easily.

As previously mentioned structured settlements are favorable to all parties involved in the dispute or case. The plaintiff will realize several distinct advantages with the acceptance of a structured settlement as opposed to a lump sum arrangement. As far as the defendant is concerned; it is always easier to pay compensation in regular installments than to be forced to pay all at once, especially if the amount is significantly large. The payment plan option also decreases the legal and administrative expenses that the defendant has to pay. This type of agreement is always more appealing to the court also because the time spent on a trial is minimized.

The bottom line is simple, compared to a one-time large cash payout; a structured settlement is a good user-friendly solution for everyone involved. That being said, there are still some situations where a lump sum payout is the better course of action.

Basic Tips to Purchase Structured Settlements

Structured settlements arise from the settlement of lawsuits. It is usually where companies settle a case out of court and a lump sum is paid to the defendant as a result of defective medication or products, injury, accident, malpractice in the medical profession to name a few. These settlements can work out to be a large sum and in most cases the monies are paid via a fixed sum on a timely basis. The basis can be monthly, semi-annual or yearly or whatever is decided upon by the two parties involved. Another reason for these structured settlements is because in many cases, the individual or parties involved are unable to work or maintain the expected standard of income that would have been enjoyed prior. These amounts when paid over a period of time will equate to the affected individual receiving more money, since interest accumulates on the unpaid portion at any given time.

There are companies that purchase settlements from individuals. This benefits the settlement owner if a lump sum of money is what is needed at that point in time. It may be required for a meaningful purchase such as real estate and education; however it is always important to weigh very carefully the benefits derived from the lump sum payment and the long term installments received on a timely basis.

In order to purchase or invest in these settlements, the transaction has to be profitable or lucrative to the purchaser. There is usually a fee to be charged, which will be calculated as a percentage of the settlement. The long term investment and therefore the long term interest to be derived from the purchase is another benefit derived. In many cases, dependent on the state in which the settlement resides, approval by the court is required to purchase structured settlements. This is to determine that any purchase of structured settlements is done in good faith and that the settlement holder is not taken advantage of in any way by the purchaser. It also serves to ensure that the settlement holder is in fact making a correct decision and not selling blindly without thinking of the future.

When attempts are made to purchase these settlements the settlement holder can agree to sell part of the structured settlement. In this way the holder not only benefits from receiving a lump sum from the sale, but continues to receive some of the pre-determined payments on a timely basis.

The purchase of structured settlements requires a lot of thought between the both parties involved. The purchaser does not want to enter into this transaction if the company paying the structured settlement is not sound or profitable. The seller does not want to venture into a frivolous sale which cannot benefit in the long term and compensate for the loss of the structured payments. These are just some of the concerns that need to be addressed when discussions are taking place to purchase structured settlements.

Factors Influencing Your Choice of Structured Settlement Buyer

Are you looking for a structured settlement buyer? Then, you should take several factors into consideration. This will allow you to realize the best deal as per your convenience. Assess how honest a buyer is through those initial conversations only. The sign of a good buyer is someone who could provide you with additional information along with the usual pros and cons of sales. If the buyer is a funding company, then your task becomes much simple. This is because you will be having the advantage of going through its corresponding website and know about services offered. You can benefit a lot financially by regarding such information.

Qualities of a Buyer

You need to show optimum care in choosing a structured settlement buyer. This is because the buyer could be a skilled individual or a financial funding firm with years of experience. You will be tricked in case you are slightly heeding to their words. Ideally, the sign of a good buyer is someone who agrees to pay the amount you have quoted. It is better to deal with a buyer in a single point of contact. You need a lump sum amount of your annuity in this regard. Additionally, an ideal buyer is one who pays you the needed amount as per your agreement based on the quotes of a company.

Need of the Hour

The services offered by a structured settlement buyer can be realized the most whenever one is in crisis. Imagine a situation when a person has met with an accident. Meeting with expenses of treatment charges and other wellness costs can be ideally done by approaching your insurance company. But, if you could consider the services of a buyer in such a situation will be even more beneficial for you. This is because you will be at the receiving end when you are need in of your policy's money to purchase a home or car. Shortage of funds will trouble you a lot.

A Tricky Situation

Sensing the importance of money you need, a structured settlement buyer might trick you into coughing more money. This might result you in coughing charges that are over 50% even during certain situations. However, there are buyers who consider your payment offer leaving huge profits for you. This is the same situation as that of winning lottery. The reason could be attributed to annuities alone. This is the reason why structured settlements work the most when you own an insurance policy or an annuity. It is a rarity to find mortgages fitting into this bill.

Selecting the Buyer

Your choice of structured settlement buyer is cumbersome when there are a lot of them available. Most of them advertise with a wide range of features to attract sellers towards them. But, you should not select a buyer based on these features alone. Try to get more information about the buyer like since how many number of years service is being offered, a list of clients available and, most importantly, the amount of success with a buyer performs.

Structured Settlement Lump Sum - What You Need to Know

When both the lawyer of the defendant and the lawyer of the complainant know how a certain lawsuit will turn out, they strongly recommend their clients to have an agreement outside of the court. Most of the time, it is the lawyer of the defendant who initiates the discussion of this agreement. This is because he knows very well that his client will either face bankruptcy or a huge one-time expense once the ruling of the court is released. The discussion almost always ends up with an agreement such that the lawsuit becomes dismissed if the defendant agrees to periodically pay a certain amount of money to the complainant until a declared amount is reached. This agreement is called structured settlement. However, there are times when the complainant wishes to obtain the total amount of money declared on the agreement in just one strike. This one-time big money payment is also known as structured settlement lump sum.

There are several reasons why a complainant (known as the "claimant," once the settlement has been agreed) will want to obtain the structured settlement lump sum. One is because of an emergency expense that requires immediate payment of a huge sum, such as an immediate medical treatment. Another reason could be that the claimant wants to immediately pay a debt, such as a loan on a car, because the interest that it may procure over time is larger than the total value of the structured settlement. It could also be that an immediate purchase has to be done, or that the claimant sees an investment that will give greater returns than the total value of the settlement.

Whatever the reason could be, a claimant who wishes to obtain a structured settlement lump sum should not expect to obtain a sum of money that is equal or greater than the total value of his settlement. This is because in order to obtain the lump sum, there should be a buyer for the settlement. In order for a claimant to have a structured settlement lump sum, he has to sell his settlement to prospect buyer. The buyers of a settlement will always seek minimize the price that he has to pay for the settlement in order for him to maximize his profit, while the sellers will always seek to sell his settlement on the highest possible price. A negotiation on this matter will keep on going, until the transaction of transferring the structured settlement is agreed upon by both parties.

Why To Purchase Structured Settlements - The 5 Profitable Reasons

To purchase structured settlements means, that you have to be able to get the same benefits as the original receiver. Because the federal administration has given the benefits, they can advice, whether you as an investor can get them too, if you will purchase structured settlements.

In most cases the settlements will be paid, because the court has decided so. Most often an insurance company will do the payments, but the court wants to decide, whether an investor can purchase structured settlements and whether the seller is allowed to make the sale. For instance, any hidden sums are not allowed.

1. Helps The Planning.

For an investor the settlements are easy, because he will receive a sure payments along an agreed timetable. So the main thing is to make sure, he will get the program with a price, which makes it possible to earn enough profit. Of course there is the risk as to the other parameters, like the interest rate levels during the running time and the development of other assets during the same time.

2. Gives A Tax Free Benefit.

The periodic settlements are mostly tax-free. This is very important for the investor, when you think, how much taxes you usually have to pay from the results. Note, that not all settlements are tax-free, so you must be very careful as to the details of the plan.

3. Purchase, When The Economy Is Down.

When the economy is down, almost all investment instruments are too. On the top of that, during the down economy many people need money and some are desperately selling their assets. This is the right time to purchase settlements as bargain prices. The purchase price is the most important single factor in this deal.

4. Forecast The Future Interest Rates Realistically.

What the interest rates has to do with this deal? Well, the high interest rate eats the investment value, because the discount rate is then higher, which will decrease the present value of the investment.

5. Make Sure, You Get The Planned Benefits.

Because the settlement was originally given for another purpose and will soon be sold, it is very important to make a list about the agreement points and to guarantee, that you will honestly get the benefits after the ownership has been changed.

How Much A Structured Settlement Investment Can Profit

What really fascinates me with the structured settlement investment is the steady stream of income, which comes surely like a local train. There will be no risk factors, if you have remembered to check the background of the paying company, which is usually an insurance company.

Of course your profit targets are important, but I am sure you will also set value on the low risk feature of the structured settlement investment. During the deal process, the main thing is to get the program with the bargain price.

1. Who Sells These Programs?

This market is a special market, where certain brokers operate. The job of the broker is to find a buyer for the settlement program, which is for sale. The brokers can also guide, how the court will handle certain things during the process. This is important, because these deals involve a lot of working hours and if the court would reject the deal, the investment in time would be lost.

2. The Federal Structured Settlement Act - What Is That?

Most investors, who want to invest into settlements do not know, that the federal law regulates these deals a lot. The Federal Structured Settlement Act was issued in 2002 to regulate actions against unhealthy practices of some companies, which offered cash for the settlements.

Before the deal is closed an investor has to make pre-contract disclosures about the key things in the deal. Every time an investor wants to make a structured settlement investment, he has to get the court acceptance.

3. Why The Calculator Is Useful?

The calculator helps to count, how much some future payments has value to-day. But before you start to calculate, you have to know, whether the settlement is paid for some fixed time or for the life of the accident victim. The investor will pay less for the latter versions.

With the help of the calculator you can easily calculate the present value of the program. After that you have to use a certain discount factor to make the investment profitable. An industry standard is to offer 60 - 70 % of the net present value of he program.

4. Be Cautious.

All in all, the investor must be cautious. The settlement investment is a god deal, when an investor knows in advance the legal and financial facts. And you have to learn, how to use the calculator to get the present value of the program. If you have small experience, get an expert guidance.

Buyer of Structured Settlement - What You Need to Know

Structured settlements of other people can actually be used to gain considerable profits. This can be done by buying a settlement. A buyer of structured settlement can profits in this way by buying the rights of a settlement at a lower price than the face value of the structured settlement at hand. The lower the price of a settlement has been purchased, the higher the buyer's profit becomes. Note that even though a buyer of settlement and its seller are the key parties in the process of transferring settlements, there are also other participants that have to be taken into account.

The guiding principle for this kind of transaction is that the purchasing (or selling) of a certain commodity takes place when there is a disagreement in value, while there is an agreement in price. In the case of purchasing (and selling) of a settlement, the commodity is the settlement itself. The seller of a settlement sees its periodic payments to be of less value than the price he is willing to sell it for. On the other hand a buyer of structured settlement places a higher value for the total amount of the structured settlement than the amount of money that he is going to pay for it.

A smart buyer of structured settlement will take advantage of this principle by making the seller' settlements seem to be of less value. One way to do this is by putting pressure on the seller's mind so that he immediately sells it. There is also another way for the buyer to make the settlement underpriced. This is by making the seller see that the purpose of selling the settlement is so urgent that the selling price that is being proposed will actually be enough. In other words, the buyer has to make the seller desperate for the price that he is proposing.

Although a buyer of structured settlement and its seller are the main players in the process of transferring settlements, there are also other parties that have to be greatly considered. One of those is the legal consultant. Remember that a settlement rooted from a lawsuit so the buyer has to be sure that the only thing he has to do is pay the declared price of the settlement, while he collects the regular payment of money done on the rights that he has bought. He has to make sure that he is free from any other legal obligations that are owned by the claimant (the seller) and the defendant (the one where he reaps his profit).

The Benefits Of Structured Settlement Investments

Are you a recipient of a court settlement? If this is the case, have you ever heard of structured settlement investments? By taking this option, you never have to go the full nine yards in getting the money you deserve. This is a way to cut down on the time it takes to get a significant bulk of the settlement in no time.

How Court Settlements Work

If ever you win a case in court, you will most likely be the recipient of a substantial amount of money. However, you do not get the entire amount right there and then. You actually get paid the entire amount in a matter of months or even years. In a lot of cases, if the amount is a large amount, you have to wait almost a lifetime to get fully paid. There is just no way to get the whole amount in an instant.

The Problem

We can never predict what the future may hold. No matter how well we plan things, there will always be unforeseen situations that we will never see coming. There might be situations when you may need a substantial amount of money. If ever a need presents itself, there will be no way for you to capitalize on your settlement.

The Solution

Thankfully, there is a solution to this problem. The solution can be found in structured settlement investments. By taking this option, you no longer have to wait a long time to get the bulk of the settlement. Here, you get a significant amount of the settlement in an instant.

How It Works

There are various firms who are interested in purchasing your settlement for long term investment purposes. They offer to buy your settlement off your hands at a discount. Regardless of this discount, you get most of the money in a flash. This simply means that there will be no more need to wait for months or even years.

The Benefits

Structured settlement investments have a lot of benefits. The only drawback is a 10 to 30 percent deduction. Here are those benefits:

- Getting most of the money as soon as the settlement is purchased
- Having ready cash in cases of emergencies such as accidents, health care of loved ones, and health care for yourself in case something happens
- Settling debts without having any need for loan restructuring
- College expenses without having to deal with interest rates
- Business opportunities
- Investment opportunities
- Whatever immediate need you might have

As you can see, there are so many benefits when taking the option of structured settlement investments. You never have to wait a long time to get the money that is due to you. You will never be caught off guard. You can take advantage of any opportunity that comes your way. You can pay off your debts in the least amount of time. You can satisfy whatever immediate need you may have. This is a ready option you can take. These are the benefits of structured settlement investments.