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.

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.