Structured Settlements: Benefits of a Structured Settlement

Structured Settlements: Benefits of a Structured Settlement: There are many long term benefits to having a structured settlement . First, the person who was injured and awarded the settlement is likely...

Structured Settlement Quote

If you were awarded a structured settlement, but you need your money now, you should think about selling your settlement for a lump sum payment. Many companies offer free, no-obligation structured settlement quotes that will allow you to see how much money your settlement is worth.

Many people are awarded structured settlements in personal injury, worker's compensation, liability, harassment and malpractice cases. The payments in these awards are made in installments that can last months, years or even a lifetime. However, you may need the money from that settlement now to, or example, pay for your child's college tuition or make a down payment on a new house.

In most cases, sale of structured settlements is regulated and you may need court approval for the sale. You are always advised to consult with an expert in negotiating a structured settlement sales contract. You will also likely lose the tax benefits provided by a structured settlement if you sell for a lump sum payment. However, if you definitely need the money in your award to meet urgent financial requirements, you should shop around for structured settlement quotes. Make sure the buyer of the settlement is a professional company with an established reputation. Ask about their qualifications and for references on the quality of their work.

A professional company can also analyze your situation and advise you on whether selling your structured settlement is the right choice in your particular case. Once sold there is no turning back, so you want to make sure you are making the right financial decision.

With a structured settlement quote, you can see if the cash payment will meet your immediate financial needs or not. At times it may be better to hold off on selling your settlement until a later date in order to get the best deal for your money. Also, you may want to only sell some rather than all of your monthly payments. A partial sale of your structured settlement may suffice in meeting your immediate needs, so that you continue to reap the tax and other benefits of installment payments.

Structured Settlement Funding

Structured settlement funding is the funding over a structured settlement, a settlement in which the reward is paid to the plaintiff over a course of time. The period of time will vary according to the merit of the settlement, often from two years to the remaining life time. Unlike pre settlement funding, structured settlement funding does not depend upon the assumed strength of the settlement, as the settlement value is already determined. More over, an annuity or government bond generally guarantees structured settlements.

With regard to the funding agency, structured settlement funding has many advantages over other modes of settlement funding in terms of managing larger amounts of cash, tax exemption, flexibility, and stability. It is also possible for the person selling his settlement to be taxed for the amount he receives through the sale, although he might have been tax free prior to transfer. It is better to consult a lawyer before signing a contract with a structured settlement funding company as he can provide the required legal assistance. A structured settlement funding company which buys a settlement does that only for profit and the profit comes from the payments that otherwise the holder of the policy would have received. Major disadvantages of structured settlement funding are the high commissions on the purchases by the companies and in equal payments; inflation causes reduction in real value of payments.

Structured settlement funding needs approval from a judge, because of a recently enacted federal law. Most of the structured settlement funding companies offer the entire court fee needed for the transfer process. Structured settlement funding of a settlement right depends on one's home state and the insurance company that provides the settlement annuity. About two third states have laws that restrict structured settlement funding and some insurance companies that give the annuities prevent the transfer of settlement rights to third parties.

Cash For Structured Settlements

A structured settlement is a way to pay compensation to a victim of an accident, on a periodic basis. Structured settlements can either be paid in regular installments for a fixed period of time or for the claimant's lifetime. It is seen as the best form of settlement, because it caters to a claimant's need for security in an effective manner. It also provides better financial benefits over a period of time compared to a single lump-sum settlement. Structured settlements are also advantageous, as they make the beneficiary of the settlement eligible for tax breaks. In certain cases, an initial large payment is made to cover expenses. In the case of structured settlements, annuity purchased from a life insurance company usually provides the funds required for making the payments.

The parties involved (the victim and the party sued) make a contract with a settlement payment provider. A settlement payment provider is a company that is usually affiliated with a life insurance company. The settlement payment provider is paid the lump sum settlement amount by the sued party, which it pays to the victim on an installment basis over a pre-determined period of time. The processing time may vary from four weeks to four months, depending upon the court's calendar.

In most cases, the payments are made on a monthly basis. However, this can be changed according to the victim's needs. In certain cases, specific conditions may be included to increase the payments periodically, or additional payments may be made if the need to do so is identified in advance. The stipulations of a structured settlement cannot be changed at a later date. It is also not possible for a victim to get interest on the balance settlement amount, as the settlement is tax-free. In cases, if a victim needs a lump sum of money immediately, he may sell the settlement agreement much like a stock. However, this is not always possible and will depend on the state where the agreement is being signed.

Structured Settlement Companies

Have you just been awarded settlement for injuries you sustained while at work? If yes, is the amount that you receive now enough to pay your medical bills, since the rest of the fund will be distributed over the next 20 years? If not, then what can you do about that?

Structured settlement may work fine for some people, but definitely not for those who urgently need a large amount of money to pay for hospitalization and soaring medical bills. The only option you have is to sell your structured settlement and receive the amount that you need now. But selling these periodic payments is not a piece of cake. You have to find a trusted structured settlement company to purchase your settlement.

Structured settlement companies either buy or sell structured settlements to give victims a second choice to consider their payments and to provide those claimants who are in need with a huge amount rather than a long-term financial security.

If you wish to sell your structured settlement, see to it that you sell your payments to a trusted company, since a transaction of this nature cannot proceed without the ruling of a judge. Likewise, if you wish to purchase a structured settlement, you must look for a reliable structured settlement company that you can trust.

Selling and buying structured settlements are transactions that you should think over before making any decision. If you are thinking of selling or buying settlement payments to a structured settlement company, you have to check first with multiple companies in order to get the highest payoff possible. Also, make sure that the company that buys or sells structured settlement is well established and a reputable one.

Selling Structured Settlements

Structured settlements can be sold when there is a monetary emergency. There is an option of selling the settlement in parts, instead of opting to sell the whole settlement for a lump sum. The whole settlement needs to be sold only in case of dire emergency when the cash has to be raised immediately. Structured settlements can be sold as portions when money is required in smaller quantities and does not require the lump sum that would be available if the whole of the structured settlement is sold.

Structured settlements ensure periodic payments of a lump sum, and the lump sum can be released by selling a part or whole of the structured settlement. However, when a structured settlement is sold for a lump sum, the amount received is usually considerable less than the market value or lower than what would be received in monthly installments, but they do provide the option for sale in case of financial necessity.

In some cases where the structured settlement on periodic basis is no longer required, such as in cases of worker's compensation where the medical bills no longer need to be paid after the individual is discharged from the hospital, selling off the remaining portion of the structured settlement can produce a tidy lump sum that could be used for other necessities.

Consider the legalities before selling a structured settlement, as some might not have the option of being sold earlier for a lump sum. Also, when the negotiations take place, some contracts might put up the restriction on sale of the structured settlement. Since structured settlements help in tax savings, it might make the person liable to pay tax after the settlement is sold. Also, if the settlement is being sold to raise cash for an emergency, it is possible that the insurance company might make an offer considerably lower than market value.

Licensed brokers and attorneys would be able to assist in selling a structured settlement in an appropriate manner since they are specialized in this field. It is important to take their advice before selling either a part or whole of a structured settlement as this might result in a bad judgment on part of the individual.

Buyers of Structured Settlements

Structured settlements can be bought as an investment or provided as a compensatory payment to an injured party. Hence, these settlements can be used when receiving periodic payments or can sold either by parts or as a full settlement to raise a lump sum.

Structured settlements are usually sold in case of financial emergencies like medical or legal troubles. So the individual interested in buying the structured settlement must consider these even before going in for the settlement. The settlement being offered in the case of a personal injury must be able to cover the cost of the medical expenses as well as the daily requirements of the injured person's family. It must not be that after receiving the settlement the injured party will have to sell the whole or part of the settlement to take care of such needs.

Attorneys and structured settlement brokers would be the best people to consult before buying a structured settlement. Since the brokers are specialized in this field, they would definitely be very valuable even though the attorney might not be specialized. Different offers available on the market need to be considered first. The brokers can provide details regarding these offers. They must also be in a position to advice on various deals currently available in the market and the best-suited deal for any given circumstance. Brokers also help in selling a structured settlement so they should be able to negotiate with the other party for maximum benefits in the settlement.

People who are looking for periodic payments must look for the most beneficial deal if purchasing the settlement as an investment. This can cover the requisite expenses for a long time if the best kind of structures settlement annuity is bought with the help of a broker.

Structured settlements are the best option for minors till they reach a consenting age and are able to manage huge sums of money. So, such people can invest in structured settlement annuities.

When is a Structured Settlement Best?

A structured settlement is not the answer for everyone. Some victims will prefer and benefit from a lump sum payment. However, there are very specific cases where a structured settlement is ideal for the victim. This generally occurs when the victim is in need of long term or permanent care. When an accident occurs that leaves a person unable to work and earn money for themselves over a long period of time, they will need the funds to care for themselves and whatever medical care is necessary. Whether it is an injury that will take a very long time from which to recover or a permanent disability that will prevent the victim from working for the duration of his life, a structured settlement is ideal in these situations.

For anyone who has any type of guardianship, a structured settlement is also a perfect solution. For example, if someone dies as a result of an accident through no fault of his own, a settlement may be awarded. However, the settlement is going to the victim's family as opposed to the victim. The money may be used for funeral expenses and for the care of the surviving family, especially if the victim was the provider of the family's income. Spouses and children are generally the beneficiaries of a structured settlement. Minor children can especially take advantage of the benefits of a structured settlement. Their housing, food and other every day expenses will be ensured. Plus, very often their education and college expenses will also be taken care of so they can lead a productive life even without the assistance of their loved one.

Benefits of a Structured Settlement

There are many long term benefits to having a structured settlement. First, the person who was injured and awarded the settlement is likely suffering from a debilitating injury that will forever affect their life and livelihood. This could be anything from a condition that makes life uncomfortable to a serious crippling injury that forever changes the person. Regardless of the severity of the injury the victim has to become used to living their life in a different manner. Adding to this the stress of dealing with a large sum of money they are not used to can make the transition even more difficult.

A structured settlement, though, can help alleviate some of the stress. It is especially difficult to manage a large sum of money if you will no longer be able to earn a living for the remainder of your life. Whatever sum of money you were awarded must be invested and used wisely in order to last throughout your lifetime. This is not always an easy feat. Often people have to hire financial advisors and investment advisors to keep track of and administer the money so it does not run out. With a structured settlement, though, this process becomes much more manageable.

Without a structured settlement, many victims had to rely on a third party. In a lot of cases, the money ran out quickly. This is for several reasons. The victim may have had poor spending habits. Faced with a large sum of money, they were not thinking about the future but instead were thinking of fun ways to spend a lot of money they never had before. Not long after that, they find the money is gone and they still have to live their life.

Another reason is because professionals were hired to advise and administer the money appropriately. Without some knowledge of financial endeavors, the victim may have hired someone incompetent or unreliable. The money would not be invested wisely and gone before they knew it. Another common reason is the victim relies on assistance from family members thinking they would have his best interests at heart. Unfortunately, this is often not the case and greed gets the better of the family member. A structured settlement reduces the risk of these issues substantially.

What is a Structured Settlement?

A structured settlement is the payment of money for a personal/physical injury claim where all or part of the settlement calls for future periodic payments. These periodic payments are funded through an annuity purchased from a major life insurance company or Treasury Bond Trusts. By using highly rated and nationally recognized well-known life insurers or U.S. Treasury Bonds, you can be assured of financial security throughout the period that the payments are due under the proposal.

In the case of lawsuits settled out of court, an increasingly popular alternative to a lump-sum payment is a structured settlement, which is a series of payments to the plaintiff over an agreed-upon time, including lifetime. Typically, the payments are funded through an insurance company annuity or through U.S. Treasury Bonds. Rather than receiving them in one lump sum, the plaintiff will receive a stream of tax-free payments tailored to meet future medical expenses and basic living needs. The settlement may build in an inflation factor so that payments periodically increase in size.

One advantage of structured settlements is they can be designed in a variety of ways. The structured settlement can include a lump-sum payment to pay up front for accumulated medical bills, attorney fees, and costs. It can include lump-sum payments at specific times in the future to pay for college tuition or to fund retirement at 65, with the bulk of the money being paid out in periodic, usually monthly, payments.

One very obvious benefit of a structured settlement is that it eliminates the risk of the recipient, whether a minor, incompetent, or disabled person, squandering the money in a short time.

Another benefit is financial: When Congress amended the federal tax code to encourage structured settlements, it explicitly provided that 100 percent of every structured settlement payment would be exempt from federal taxes.

Guaranteed lifetime payments often stop at the recipients death. If a victim lives a normal life expectancy (which is what the periodic payments are based upon), everything works out. If the recipient dies earlier than expected, the survivors may find themselves with a loss of income they were counting on. The structured settlement may be designed to continue payments to the victim's beneficiaries for a limited period after death.

 Before entering into a structured settlement agreement, consult with one of our qualified, experienced structured settlement brokers.

Structured Settlement Securitization

Accidental injury victims are increasingly accepting settlement from the part at fault in the form of a structured settlement when compared to a lump sum payment. Under structured settlements, you would receive compensation over a period of time (mostly, your life time) as against a single large payment. However, at times, you might feel the needs for a greater sum of money in a short term and not receive payments split periodically. Don't choose to dive into risky loan-shark waters when you have the simple option of choosing structured settlement securitization.

Although structured settlements are designed to benefit those who receive them, there might be times when the receiver feels the need to sell them. Here are some of the most common reasons:

o You find yourself paying for unforeseen medical expenses for your dependents or yourself.
o You need funds to finance your home purchase.
o You need to finance your child's education.
o Your credit card bills loom large and creditors are harassing you.
o An unexpected expense has come up and you simply don't have any cash.

The reasons might vary. But, you can rely on a annuity recipient, who will help sell all or a part of the periodic payments and give you a lump sum - immediately. There are a number of companies who will work closely with you and create personalized solutions based on your needs. Selling a part of your structured settlement can provide you the financial respite you need. With proper paperwork in place, this process takes a few hours. Thus, you are assured the finances you need, in the shortest time. Experts will help evaluate your needs to determine how much of your annuity payments you need to sell, to deal with your financial crunch.

Wondering if you can sell your structured payment? It is best to obtain a structured settlement quote to estimate what you would receive.