What is a structured settlement?
When it comes to settling civil cases, particularly personal injury lawsuits, it is common for the litigants to reach an agreement even before the trial starts. Once there is a settlement, the plaintiff cannot continue with the legal action. In exchange, he receives a money payment, either in lump sum or structured payments, from the defendant’s insurance company or the defendant himself.
In a structured settlement arrangement, the plaintiff receives regular payments spread over several years or throughout his life. This compensation is especially helpful in cases where the plaintiff has suffered a permanent injury. The plaintiff is provided with an agreed stream of income over the entire term of that structured settlement.
A structured settlement is basically a case of the defendant’s insurer simply funding an annuity policy as compensation to the plaintiff.
Can I sell a structured settlement?
While the guaranteed income of a structured settlement is a great thing, sometimes people fall into financial difficulties and are left with no option but to dispose of the structured settlement annuity in order to raise money.
Selling a structured settlement is not a difficult process. It involves you making the decision to sell, deciding your price and seeking a judge’s approval before receiving your money.
Whatever your reasons for selling are, the law allows you to sell your structured settlements in exchange for a cash lump sum.
Here are some of the reasons why people opt to sell:
Sometimes selling your structured settlement may provide a more viable option than taking a loan after losing a job or for medical emergencies.
(2)Paying off debts
Interest accruing debts can also be a huge burden to carry. In such situations, selling your structured settlements makes perfect financial sense.
(3)Buying real estate
The lump sum you receive on selling your structured settlement, if used to acquire real estate, can provide you with rental income even higher than the monthly disbursements of the agreement.
Getting a college degree is always seen as a great step towards securing one’s future. It is one of the common reasons why people cash in on their structured settlements.
(5)Starting a business
Sometimes people agree to a structured settlement and then later realize that a lump sum payment would have been a better option for them. This regret can create a motivation to sell.
How do I choose the best company to handle my structured settlement?
The process of a structured settlement agreement can be quite complex. The final transaction has to be approved by a judge. After the court approves, it’s up to you and your legal representative will start the modalities of reaching a cash settlement with the company.
When choosing a structured settlements company, there are many factors that come into play. But the bottom line remains being able to get the most money out of any deal reached.
What are some of the factors to look for?
(1)Company track record
Listen to what people are saying about that particular company. You may also check online although you may have to be careful about falling for every single review online.
Although this is not necessarily enough on its own, it’s always good to deal with a company that has been at it for a long time.
How long do they take to respond to inquiries? Do they keep you holding the line for a long time? Choose a company that accords you the respect that you deserve.
Here are some of the top companies that deal with structured settlements:
The fact that this company has been purchasing and selling annuities and structured settlements since 1991 is a true testament of their commitment to providing their clients with real value for money. JG Wentworth has a reputation for always keeping clients informed every step of the way in a structured settlement process. The company’s website has a quote request function which can be used for getting a rough estimate of the lump sum to expect after you sell.
(2)Olive Branch Funding
This structured settlement company with branches throughout the U.S. specializes in structured settlements, buying annuities and also lottery winnings. Once a court decides that you are entitled to a structured settlement, the monthly payments will commence. Olive Branch Funding also allows you to convert your payments into a one-off lump sum payment. If the process of selling the structured settlement drags too long in court, Olive Branch Funding has a cash advance option. All the information about fees and discounts is displayed on the company website.
SenecaOne takes pride in giving clients a personalized approach when helping them meet their financial goals. They are very patient when guiding you to make the right financial decision about your annuities and structured settlement payments.…