Structured settlements are a small percentage of personal injury settlements

A Towers Perrin study* reported that in 2006 $161 billion was paid to injury victims and their attorneys. If one assumes that one third of this amount represents contingency fees, then approximately $105 billion is paid to plaintiffs each year. New structured settlements are created at a rate of approximately $5-6 billion every year. According to Standard & Poors**, in 2004 the cost of all outstanding structured settlements was approximately $80 billion and was expected to grow by $6 billion that year. Also according to Standard & Poors**, as of 2008, there were more than 500,000 structured settlement contracts outstanding in the U.S.

Structured settlement payments offer flexibility for uncertain times and changing circumstances.

The average person does not know much about structured settlement payments. Without an understanding of the benefits of structured settlement payments versus lump sum payouts, most injury victims tend to choose a lump sum payment.

In fact, Joseph M. Costello, Chairperson of the National Structured Settlements Trade Association (NSSTA) Marketing Committee, reported at NSSTAs 2007 Winter Meeting and 2007 Annual Meeting that just 7% of personal injury settlements between $75,000 and $100,000 include structured settlements and only 30% of personal injury settlements above $1 million include structured settlements.

An AIG study*** conducted in 2007 shows that the less a person knows about structured settlements, the less likely he or she will choose a structured settlement. And, more importantly, the opposite holds true: the more a person knows about structured settlements, the more likely he or she will select a structured settlement instead of a cash payment.

In the study, AIG asked people how they would prefer to receive a settlement. With no explanation of the difference between a lump sum payment and a structured settlement annuity, 65% chose a lump sum and 35% chose a structured settlement. But after receiving explanations of the differences between a lump sum and a structured settlement, 73% chose the structured settlement annuity payments and only 27% chose the lump sum payout, a complete switch.

At the end of the survey, AIG concluded that the structured settlement industry needs to educate Americans about structured settlements.

Once they learned about the benefits of structured settlements, plaintiffs said that a primary reason that they would choose a structured settlement annuity is because it provides a reliable income for monthly expenses and guarantees financial independence. What may not be as clear to plaintiffs nowadays are the many options and the flexibility that a structured settlement offers.

Once a person receives the cash from the lump sum payment, he or she cannot simply change his or her mind and switch to a structured settlement payment. However, if an injured person chooses a structured settlement payment, he or she has the option at a later date to sell all or part of the settlement in the secondary market, for immediate cash, while still retaining a portion of the income stream.

Section 5891 of the Internal Revenue Code and the Structured Settlement Protection Acts at the state level give payees the option, with court approval, to transfer structured settlement payments from themselves to factoring companies who buy structured settlement payments. Given the flexibility offered by the buying and selling on the secondary market, structured settlement payments may be a better option for those people who are uncertain about whether to choose a structured settlement or a lump sum payment.

Very few people actually sell structured settlement payments

Out of the total outstanding amount of money currently held in structured settlement annuities more than $80 billion less than $800 million is transferred on the secondary market each year. That means that only about 1% of structured settlement payments are sold each year.

Only about 1% of structured settlements are sold or traded in the marketplace.

Not a lot of people sell their structured settlement annuity payments. In fact, 99% of people do not sell structured settlement payments. Those who do choose to sell structured settlement payments typically do so because their circumstances have changed, and they need the cash for a specific reason (medical procedure, debt reduction, education, etc.). The cash is used as an escape valve, to help people reduce some of lifes pressures so they can deal with a problem or an opportunity.

Life is full of changes: why should a structured settlement be forever?

Most homeowners buy houses using 30-year mortgages only to refinance many years before the end of the mortgage term. Consumers sign up for long term life insurance life insurance policies which are intended to be in force for extended periods of time. But then they stop paying the premium and let their coverage lapse. Why ? Because their lives change, their circumstances change. Maybe they can no longer afford the premiums, or maybe they can get better coverage elsewhere. The point is that, at the outset, the initial long term commitment made perfect sense, and then as life moved on, a change made more sense. Each year between 3.5% and 7% of all life policies are allowed to lapse by the insured person****.

Circumstances change. Lives change. A person who received a structured settlement as compensation for an injury may want to enroll in college or job training and may decide selling structured settlement payments for cash now is the best way to pay for his or her education. Or an annuitant who received a structured settlement as the result of an injury may have the opportunity to buy or renovate a house to better suit his or her way of life. Selling a structured settlement for a lump sum of cash may be a prudent way to cover the down payment on a house, pay off a mortgage, pay off taxes or to pay off credit card debt.

Even the insurance companies who issue structured settlement annuities recognize that there needs to be an escape valve. Most insurance companies include death commutation riders when they create structured settlement annuities. These riders allow an estate to cash out the deceased persons structured settlement annuityusually in order to pay estate taxes. In addition, two large insurance companies, Symetra Life Insurance Company and Allstate Life Insurance Company, recognize the need for an escape valve in other scenarios and will buy structured settlement annuity payments themselves.

Lawsuit awards are a mechanism by which our justice system tries to compensate victims for their damages. Structured settlements are a tool that helps to customize and maximize an award. A future stream of guaranteed payments is of great financial and emotional value for plaintiffs when they are feeling their weakest and most vulnerable, because it provides stability and comfort at the time that it is needed most, at the time of the injury. However, no one has a crystal ball - life changes and circumstances change, whether it is much needed surgery, a new roof on a family home or job re-training to react to new opportunities. And structured settlement payments can be sold for a lump sum of cash to meet these needs. The ability to access a portion of a structured settlement is a benefit that many industry professionals believe adds to the value and benefit of a structured settlement, allowing it to be utilized to the fullest.

In conclusion

As a society, we get divorced, even though we were not supposed to be parted until death; we re-finance 30 year mortgages decades before they come due; we commit to life insurance policies and then stop paying the premiums all in response to changes in our lives. So, it should not come as a surprise to anyone that recipients of structured settlement payments may need to sell structured settlement payments and cash out part of their payments in order to deal with lifes changes, challenges and opportunities.

At the end of the day, if 1% of structured settlement payees sell structured settlement payments in whole or in part, then, for them, the structured settlement is doing what it was set up to do: to provide them with the emotional and financial help when they need it the most. And for the 99% of annuitants who do not sell their structured settlement payments, the structured settlement payments will continue to provide the financial support that was intended at the start.

Have you just been awarded settlement for injuries you sustained whilst at perform? If sure, is the quantity that you get now adequate to spend your health care charges, considering that the rest of the fund will be dispersed around the up coming 20 years? If not, then what can you do about that?

Structured settlement could function good for some folks, but definitely not for these who urgently require a big sum of cash to pay for hospitalization and soaring medical bills. The only choice you have is to offer your structured settlement and receive the volume that you need now. But offering these periodic payments is not a piece of cake. You have to discover a reliable structured settlement business to obtain your settlement./p>

Structured settlement companies both buy or sell structured settlements to give victims a 2nd selection to think about their payments and to provide people claimants who are in need to have with a huge quantity fairly than a long-term monetary safety.

If you want to offer your structured settlement, see to it that you market your payments to a reliable company, given that a transaction of this naturel cannot continue without having the ruling of a decide. Similarly, if you wish to obtain a structured settlement, you must appear for a reliable structured settlement company that you can trust.

Offering and purchasing structured settlements are transactions that you really should assume more than prior to making any selection. If you are thinking of selling or purchasing settlement payments to a structured settlement firm, you have to test initial with multiple organizations in order to get the greatest payoff possible. Also, make sure that the business that buys or sells structured settlement is nicely established and a reputable one particular.

personal injury settlements

Once you first get the structured settlement payment, you can be certain that you will view it as the most perfect plan you ever thought to use. This is mainly because the structured settlement will certainly provide you with the financial comfort you will need for a given time period.

However, seeing as how circumstances are always wont to change, you can be certain that you will sometimes consider selling structured settlements. Sometimes, unexpected expenses will come up. Then, you may find yourself drowning in various debts. This means that your monthly installments will no longer be sufficient. In such a case, you will certainly be in need of that lump sum of cash.

The thing to note about undertaking to sell structured settlement payments is that there will always be a buyer who will have some interest in procuring the structured settlement payments. These buyers would also be very willing to pay hard cash for your structured settlement. Finding buyers is not such a big deal. The main hardship you will get would be to get that buyer who will actually offer you a suitable amount that will quell your needs perfectly.

Of course, undertaking to sell structured settlement payments will come with a loss. Mostly, it will be impossible for you to receive the full payment for your annuity's entire value. This is because even the buyers will be looking to make their own profit.

This is the main reason why you will want to go out of your way to find that buyer who will actually manage to offer you the perfect amount of money for the structured settlement you are putting up on sale.

Quotemeaprice is author of this article on sell structured settlement payments. Find more information about structured settlement.

Sell structured settlement payments--this phrase, by itself, may not mean much to the average person. But put them together into a statement like: -I plan to sell my structured settlement payments--and they create a controversial, emotionally loaded topic.

There are many reasons not to sell structured settlement payments

There are many reasons not to sell structured settlement payments. But there are also many reasons when, give the individual's situation, it makes sense to sell structured a settlement annuity. Here are some common objections to that powerful phrase-sell structured settlement payments-and some circumstances when, even given the validity of the objection, it still can be smart to sell structured settlement payments.

Concern: Person does not want to damage total financial picture by removing a long-term, steady source of income.

Answer: If the annuitant will use the lump sum payment to invest in his or her income-producing future, such as for education or career training expenses or to start a business, it might be a smart decision to tap into the structured settlement. Each of these expenses-education, career training, business startup costs-should lead to a future stream of income that will replace the income lost as a result of the annuitant's decision to sell structured settlement payments,

Also, if the annuitant uses the cash from selling a structured settlement to build, purchase or improve a home, he or she is actually making an investment in his or her way of life, family stability, and emotional state that will ultimately improve his or her long-term, overall future and ability to earn an income. Think about how much better positioned the person will be to pursue and hold a stable career or job when he or she has the peace of mind of owning a home, for example.

Finally, if selling structured settlement payments for cash allows the injured person to avoid foreclosure, pay down a mortgage, or pay off credit card debt, then the loss of long-term payments will likely be offset by the benefit of financial and emotional stability. Imagine how much more confident and focused the person will be in jobs, interviews and any other situation with the knowledge that he or she is debt-free and in good financial condition.

Concern: Might not get the most value for the settlement or might lose value by selling at today's rates rather than future rates.

Answer: First, there are many issues to consider when making a decision to sell structured settlement payments-and not all of the issues are financial. One must also consider the emotional aspects as well. There are times when a financial loss is a small price to pay for reducing or eliminating the emotional stress and anxiety one might feel about being in debt. When one considers the original intent of the structured settlement-to provide financial and emotional peace of mind after an injury or crisis situation-sometimes selling some of the structured settlement payments is just a logical extension of its original purpose.

Second, if the annuitant uses the cash lump sum to pay off a debt with an exorbitant interest rate, finance charges, or late fees, such as credit card debt, even a discounted settlement payment will offset the high rates or fees on the debt. And the peace of mind of no longer being in debt or at risk of bankruptcy or foreclosure may allow the annuitant to move forward with smart plans for the future.

Concern: Does the reason qualify as a good reason to sell structured settlement payments?

Answer: Based on the transactions that have been approved by judges, there are a number of valid reasons for selling structured settlements: paying off or reducing debt (especially caused by a job loss), avoiding bankruptcy or foreclosure, taking care of healthcare and medical needs, paying for education or career training, providing for family, starting a well-planned business, paying for expenses related to a new or existing employment opportunity, or buying or renovating a home.

The list above is not complete of course-people have been approved to sell structured settlement payments to purchase a car to replace one that was constantly in need of expensive repairs, for example-so if the reason is practical and aimed at either reducing an expense or a debt or creating a new source of income or investment, it should be a good reason to sell structured settlement payments in the eyes of the legal system.

Concern: Perhaps the individual should find another source of cash such as a bank loan or home equity line of credit.

Answer: In today's tight financial market, even individuals with good credit may have a hard time getting a bank loan. And people with average or below average credit scores will find it nearly impossible to take out a loan. Besides, even if a bank would give out a loan, is now really the right time to add the unsettling feelings and stresses of increased debt to one's life?

As for a home equity line of credit, these days, when the value of one's home may be less than amount owed on the mortgage, it may not even be possible to get a home equity line of credit. And even if one is able to take out a home equity line of credit, when a person is coming from a place of insecure finances, it is scary and often risky to put one's home on the line as collateral for this type of loan. Besides, it is not the best idea to load one's home up with debt-even if the loan is at a lower rate as is often the case with home equity lines of credit.

Finally, if a person has access to cash from a structured settlement annuity to tie them over until a future source of income or job kicks in, there is a priceless emotional feeling of being free from debt-it is like being given a clean slate or second chance. And that sense of optimism and freedom provides the best frame of mind for the best chance of success when starting the first day of the rest of one's life-which of course is exactly the point of the structured settlement in the first place: to help the annuitant meet his or her needs while recovering from an injury or crisis.

If you are considering selling your structured settlement for instant cash but do not know the right and proper ways to go through the process, then read on and learn the basic steps in selling your settlement funds.

Step 1

You need to make sure that selling your settlement is the most logical option for you. There is stability in keeping your funds the way they are, but if your in need of immediate money it is by far more important than the stability of keeping the annuity, then it is better to sell it.

Step 2

How much are you willing to sell? If your funds are hefty enough do not sell the entire amount, then opt to leave certain amount of your settlement to maintain the periodic payment coming in for a few more years to come. But if the whole amount of your settlement is the answer to your financial dilemma, then sell all of your annuity.

Step 3

Look for various companies and ask for their quotes, it is best to have at least three quotations. It would be best to consult with their agents to know the options, their offers and the terms and conditions of their company. The internet is the best tool for you in searching for these structured settlement companies.

Step 4

Compare the many companies out there, considering on the rates, reputation, after sales services and just about anything you look for in a structured settlement. You need to be wise in your decision, as not all structured settlement companies are the same, so make sure that you discern very well for the best company to buy your annuity for your sake.

Step 5

If the intricacies of the process overwhelm you, then you can consult this situation with your lawyer. He can give you insights on what your expectations will be. He will also be the guide in ensuring to gain the best result out of the procedure that will benefit you.

Selling Structured Settlements is a growing trend that has been witnessed in the recent years. This solution has enabled people to get cash in times of urgent needs. Read this article to get a fair idea about how to sell structured settlement payments and get the most out of it.

A structured settlement is an insurance or financial agreement that a claimant accepts to dissolve a personal injury tort claim. The money in such cases is paid to the claimant either through periodic payments or in lump sum or as a combination of both. The settlement is structured because the payouts follow a certain structure, where the money is paid periodically and the courts decide this period. In broader terms, it is a settlement because the claimant agrees to resolve the lawsuit in lieu of the money.

Sometimes when people feel that they do not require the periodic payments, they usually opt for selling the structured settlements to make an immediate profit. Though, there are may be other situations too, when the claimant might be in serious need to liquidate the structured settlements. The reasons can be many, starting from the need to purchase a house or a car, to pay medical bills, fees for children's education, to buy a property or to start a business. Today, more and more people are choosing to sell their structured settlements in order to get immediate cash.

The procedure of getting the money by selling structured settlement payments varies from state to state legislation. Most state courts allow the claimant to sell off the structured settlement only after a court order is passed. However, in recent times this process has been made more streamlined and faster. The money to be received from the sale of the structured settlement may depend on a few factors like the total amount of the annuity, the frequency and the amount of periodic payments and finally, the present value of the annuity.

When one plans to accept cash for settlements, the need is to find a buyer who is reliable and most likely a long-term operator in the industry. The structured settlement buyer may be an individual, trading various funds or a rich experienced funding company. It is always safe and beneficial for people to choose a reputed company because there is a greater chance of getting more returns than expected. There are situations wherein people get more value exceeding their expectations. However, all this depends upon the kind of company a person selects to sell the structured settlement payments to. In case of any doubt, the need is to avail the services of a financial company that can aptly help in choosing the right buyer. Another option could be to hire a financial advisor who can guide about the potential buyers, as to who could give the best value on the structured settlements.

A good thing about professional settlement buyers is that they recommend people to sell only that much part of the structured settlement that can give them the money that is urgently needed. This helps people to keep the rest of the structured settlement for their future needs.

The option of selling structured settlement payments is certainly a great opportunity for people who require instant money for urgent financial needs. The only requirement from a person's perspective is to find a structured settlement buyer, who could provide the money that is needed on time.

Selling your structured settlement payments need not be difficult if you don't rush into it. Give it some thought. Why do you want sell your structured settlement? To improve your home or to buy a house you have always wanted. Maybe to pay bills or college.

You do have choices: sell the whole annuity, sell some payments, sell only the lump sum payments or sell part of the monthly payment (say one half) which will give you 1/2 the monthly payment plus some up front cash.

Its important to find a company or broker who purchases structured settlements and who will answer all your questions. Is going to take a good 2 to 4 months to do, so I think you will want someone you feel comfortable with.

You will need a copy of your structured settlement annuity, the settlement agreement and release, a photo ID, recent check and the company's app. The person you are dealing with, should work with you to get the necessary documents.

I want to point out that if you depend on your payments to pay important bills like your rent/mortgage, food and electricity, selling your payments may not be in your best interest. Look elsewhere for a loan. Your going to find yourself in big trouble when the money runs out. Just a heads up.

I'm available for questions and help. My best to you.

A structured settlement is an agreement in which an insurance company agrees to pay an injured party a predetermined amount of money for a fixed length of time. A fixed sum payable at specified intervals is known as an annuity.

Payments in a structured settlement annuity can be made for the duration of a claimant's life. Structured settlement payments may be in equal installments, installments of varying amounts, or lump sums. Structured settlement annuity is income-tax free and guaranteed by contract.

Selling structured settlements allows you to exchange installment payments for a lump sum of cash. There are various legal financing companies who specialize in selling structured settlements; they will pay part or your entire structured settlement annuity in exchange for a lump sum of cash.

The cash value will be less than what you would receive in long term installments. However, the advantage of selling structured settlements are that you can get immediate money to put directly toward other goals, such as purchasing a home, covering college fees, starting a new business, or paying off debts. You can also invest the money and collect interest on it now.

Sometimes people consider selling structured settlements when there are unexpected expenses, such as a sudden illness or divorce. Whatever the reason, having a structured settlement annuity gives you the power to decide how you would like to receive your money.

When selling structured settlements, it is your choice when and how to do so. You should select a time that is in your best interest. A settlement annuity in steady payments may provide you with financial security so selling structured settlements should not be considered lightly.

The insurance companies who pay annuities are not necessarily in favor of people selling structured settlements. It is in their best interest to pay as little as possible to let the rest of the annuity make interest that they keep for profit. Therefore, getting lump sums of cash from a structured settlement gives you the opportunity to invest and gain interest on the money instead of the insurance company.

A settlement annuity is a legal way for you to tap into your own cash flow to help you meet your financial obligations or goals. Carefully researching legal financing companies that can make this process smooth, easy, and efficient is important. The decision of when and how selling structured settlements will fit your best interest is then completely up to you.

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If you want a lump sum payment of a lottery winning, a reputable institution can offer you a plan that is affordable to you. As with all lump sum payment you will not receive the total amount of structured settlement or winnings. A certain percentage is offered.

That includes after taxes. Do not expect to receive the total settlement and lottery winners. There are fees and interest charges to recipients before you receive a lump sum payment.

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When an emergency arises, people need to get money quickly. They don't have the time to wait for their annuity payments. Luckily there are various companies that will purchase your structured settlement annuity so you can have the cash when you need it the most.

There are various reasons why people decide on selling structured settlement annuities. Some do it voluntarily while others sell because they have no other choice. Whatever the reason is, having a buyer to turn to in time of need is a welcome option for anyone concerned.

Basically, to understand what a structured settlement is, it's simply a financial agreement where you're getting compensated from an insurance settlement or some other type of settlement. It will be paid using an annuity. The payments are made in regularly scheduled installments over a period of time instead of one bulk payout. However, a lot of people decide to sell their annuity payments because they don't want to have the restriction of waiting for each disbursement.

Some of the reasons for selling a structured settlement is because they need it for their children's education, a medical emergency or because they're starting a business.

There are different types of annuities that an individual is allowed to sell. In fact even medical malpractice settlement, personal injury settlement, product liability settlement, or from a wrongful death settlement can be sold. You can receive a lump sum cash for shared, partial, or even complete buyouts depending on the plan you choose.

Take note though that you should submit relevant documents for you to be able to sell your settlement annuity. These include the completed copy of the application, the annuity policy documents, the extended release or the settlement agreement, a recent copy of the annuity check or stub, your tax return, two identification cards (one must have a photo), marriage license if applicable, divorce decree if applicable, a copy if the Will and Probate document if applicable, and copies of any assignment, revisions, and other papers that are related to the structured settlement annuity.

Meeting these requirements is actually quite easy if you have all documents at hand. If you decide on a selling structured settlement annuity to an interested company, you should do some research on their rates because you may find another company that can buy your annuity at a higher rate.

But remember that most of all, you should be assured that the company you are dealing with is really reliable so that you can get the cash you need right away.

If you own the rights to structured settlement payments, you have several options open to you that you may or may not choose to exercise. Knowing what those basic options are is the first step in determining whether your current arrangement is the best for you.

How Do I Know If I Hold Rights To A Structured Settlement?

Most people know if they hold the rights to a structured settlement, but since the definition can be somewhat broad, you may be unsure.

Basically a structured settlement agreement is a financial contract wherein a responsible party is committed to paying you in regular intervals to satisfy a financial obligation to you. Most commonly these are the result of a personal injury lawsuit where the person responsible for injury, damage, and/or negligence is required to compensate you for your pain and suffering and sometimes loss of property or use of it. The cases that result in structured settlement payments can vary and may include

oPhysical injury

oPsychological harm

oMedical malpractice

oWrongful death

oProperty loss or damage

Structured settlements also derive from contests and winnings. Sometimes a lottery winning, gambling or casino win, or other similar large windfall may be structured as a recurring payment made over time rather than a singular large payment.

Awards that are formed into structured settlement agreements are usually quite large and so are paid out over time at a rate that is supposed to meet the needs of the recipient, while also compensating for damage done.

Where Structured Settlement Payments Come From

Because such large payments would be hard to meet for some payers, and also because the majority of such payments come from an insured party's insurance provider, an annuity is usually purchased to cover them. This annuity is an investment bought for less than the actual amount owed, and accrues interest. A combination of interest and principal is used to make the recurring structured settlement payments, and this is the money received by the person receiving monies.

What Are My Options With My Structured Settlement?

If you do determine that you hold rights to payments, you have the option to sell those rights to a third party if it is deemed in your best interest; by doing so you can receive a large lump sum of cash at a discounted rate in exchange for a specified number of the payments. There are many ways this can be done, and you can choose to sell all or just some, or a percentage of your structured settlement payments. This is usually done to satisfy a financial need, such as to pay for unforeseen expenses, recover from financial stress endured during the settlement phase, or to access cash more quickly and gain better control over a larger sum rather than wait out accumulating payments.

Structured settlement payments do not arise out of fortunate circumstances in the vast majority of cases, although sometimes in the case of winnings they do. The agreements that are reached are not always ideal for recipients. Knowing what you hold rights to and exercising your payment and selling options is one way to recover from a bad situation, or possibly a way to make even better on a good one.

Questions to ask structured settlement buyer

When you are considering the sale of a structured settlement, there are some questions that you will want to have handy to ask the person who will be buying your settlement. These questions will help you to make certain that the person you are selling your settlement to will do what is best in your interests.

1. How long has the person or company been in business?

2. Are you able to verify their business and contact information?

3. Do they have proof that they are insured and bonded?

4. What is their rating with the Better Business Bureau?

5. How will they be taking care of your particular kind of structured settlement?

6. What is the number of structured settlements that they purchase annually?

7. What will be the price of the structured settlement?

8. Can they offer you a timetable as to how long the structured settlement process will take?

9. Is their company a broker or a principal?

10. Will they keep your information private?

Something that you want to do before you make a decision on selling your structured settlement is to consult with a lawyer, or someone else that is professional and knowledgeable about financial decisions.

Be certain that whoever you choose can show you credentials and is familiar with the process of the courts before making a final decision.

It's also good to talk to other people who have gone through the process and find out their experiences. You can learn a lot from the experiences of others. Thanks for reading the article has may help you make that step,If interested in International Trade and need help Please look at the LINK. THANKS FOR LOOKING AT LINK..

Structured Settlement Annuities

A structured settlement is a defined set of payments granted to the injured person of a lawsuit case comprising of an annuity. These types of annuities are called single premium immediate annuities (SPIA). The payments are negotiated with the attorney that managed the lawsuit and the insurance provider that represented the defendant. Structured settlement payments are paid as monthly, annual or one time payments that are paid out at various intervals. The concept behind a structured settlement is to provide toward the long-term needs of the victim. Now and again, however, the unexpected happens to the annuitant such as the loss of job, loss of partner, hard financial times etc. Quite often these people don't have a bona fide option but to make use of their annuity payments in their structured settlement. Other times individuals simply want to make a large investment such as buying a home but lack the traditional means of coming up with a sufficient down payment that the bank would approve. Federal regulation requires that all the structured settlement transfers be approved in court, generally in the corresponding county where the annuitant lives. I highly recommend reading the following if you're thinking about selling your annuity.

Benefits of Cashing in Your Structured Settlement or Annuity

There may be benefits and drawbacks to assigning your structured settlement. It fundamentally has to do with your financial situation and what you intend on doing with the lump sum of cash you'd get from the annuity exchange. For example, if you have a reasonable paying, stable job and would like to purchase a house for you and your loved ones but can't come up with a down payment, then it may be worth consideration. Right now is a great time to buy real estate as the asking prices are very low. However, the housing market won't stay like this permanently. Perhaps you're in a situation where you've found a great job but don't have a vehicle to get back and forth from work. Trading in some of your structured settlement to buy a car you need to land a good job may be worth it, assuming of course you have no other means of getting transportation. Additional legitimate reasons are eliminating credit card debt, home remodeling, continuing your education and learning, starting up a business (with which you have experience), and health related needs. Naturally you should make an effort to get traditional financing prior to selling your annuity simply because it will usually be less expensive.

Cons of Cashing in Your Structured Settlement or Annuity

Alternatively, if your annuity is your only source of income and you have no other methods to support yourself then assigning your annuity wouldn't be in your best interest. How would you be able to pay for day to day living expenses? How would you be able to continually put food on the table for you and your family? It would not be wise to sell your structured settlement or annuity to go on a vacation, start a business venture without any previous working experience, purchase a vehicle you don't need just because its "awesome", satisfy gambling or drug addictions, or sell it off just because you want to have a hefty lump sum of cash in your pocket. Bear in mind that once you cash in all of or part of your annuity it's gone. You can't simply change your mind after the judge signs the order approving the transfer. You might easily blow through the lump sum of cash in a small amount of time. However, if you have a legitimate reason then be comfortable in your decision to cash in your structured settlement and make sure you find the best quote you can. If you're not exactly sure of what you'd do with the money then you should reconsider. You should check with an attorney and/or financial advisor before selling your structured settlement to make certain you comprehend the terms of the transaction. There are quite a few companies that buy annuities,however, a great deal of them charge high discount rates.

Importance of Working with a Structured Settlement or Annuity Exchange Broker

Structured settlement and annuity exchange brokers can often times find you the best offer for your payments. Of course direct funders don't want you to know that but it's true. Brokers can place the transaction to any of the lenders they do business with and secure low discount rates for their clients which means more money to you, the seller. Brokers are not paid salary, like account managers working for direct funders, therefore they cost nothing for the lender to work with. There are numerous investors interested in purchasing annuities so don't be blinded by the "we've been around for 15 years" hype of some direct funding companies wishing to steer you away from brokers. A few popular fast food chains have been in business for several decades but many people would agree that their products are not the best. There are other choices; look around. Tunnel vision is never good. It is 2010 and there is a great deal of competition in this industry which is good for you the consumer. The bottom line is for you to get the most money you can for your payments, whether it's from a direct funder or a broker.

Structured Settlement Approved Lists could be an extremely bad thing for your plaintiff plus the plaintiff attorney. In many cases an agreement will nearby the end, the plaintiff will concur with a settlement, and everything appears fine.

Then, the defense unveils we now have limitations added to the plaintiff that should lower the plaintiff's choices in terms of selecting the company they use for Structured Settlement.

There's two varieties of structured settlement approved lists you will want to have knowledge of. In the following paragraphs I'll look at the 1st type.

The 1st structured settlement approved list is an:

Approved Set of Annuity Brokers.

The approved number of brokers isn't good for plaintiff attorneys along with their client as it sets up a position where the defense broker has perhaps an exclusive arrangement, or even to make the approved list together with the casualty company, has experienced to say yes to help push that casualty companies agenda.

---> What agenda is always that?

Casualty companies often love to try and turn this right profit center. As a structured settlement works its way through a case, the casualty company would wish to find a way to learn from that.

---> How must they benefit?

Maybe it's a direct kick-back or rebate, which happens to be legal in California and Florida I do think, so long as the defense broker can give identical rebate to any or all of his clients.

One other way they will benefit is if they've already an inside program that says, "We have a very wholly owned affiliate, insurance coverage company that issues annuities and we want the claimant to use their structured settlement annuity with our wholly owned affiliate or maybe a very restricted listing of other carriers."

I'll supply you with some examples shortly, but here we are at the approved listing of brokers, whenever a defense-oriented structured settlement broker has opted for represent the casualty company's interests, he's agreed to their agenda whatever it can be. If their agenda carries a rebate or kick-back, whether disclosed or otherwise, the broker is actually agreeing to the next agenda.

Many of you that really work with me at night are aware that I'm big on obtaining defense brokers, that we are inspired to assist in putting a structure together to get a client, to reveal to us whether we have a rebate or kick-back.

---> Exactly why do I think that's important?

Because nobody loves to give money away and that i do not think these defense brokers are different than We're. They don't such as incontrovertible fact that they also have to provide whatever area of earnings off of the placement of the funding vehicles within an of them cases, it isn't thrilled to give that money to some casualty company. It sets up a scenario potentially for the defense broker to find a way that they can obtain that rebate or kick-back here we are at your client with out them being subtracted from his commission.

---> How do he achieve that?

He could have the capacity to do it by setting up a savings on the annuity via an rate of interest arbitrage. To put it differently, committing the annuity using the accidental injuries claimant before they've actually kept in the retail price, plus in the interim of your energy that takes place between your date the plaintiff agrees with a list of payments along with the dates that your other agreement is executed, there can be rate of interest changes.

If you will discover rate changes which can be monthly interest improvements, that would lower the cost of the annuity... meaning in lieu of requesting $100,000 or $1,000,000 to finance an annuity package, maybe the defense broker only has to request $90,000, $900,000 or $950,000.

Those are likely extreme examples, however you have the picture.

I'm maintaining that it's entirely possible that the defense broker could point out that savings to your client and say, "there's your rebate or kick-back".

We maintain at SPI those kinds of savings should follow the good thing about the injured party. All things considered, the tax code that can cause this exemption for these particular payments doesn't mention casualty companies. It mentions us, the taxpayers.

Whenever we get injured all of us an exemption from income because of payments, but rightfully so it needs to help the injured party.

So, how can you navigate around approved broker lists in Structured Settlements?

As being a plaintiff attorney, you will have a seasoned Plaintiff Loyal Structured Settlement Planner working for you that has vast experience of protecting the rights on the plaintiff and attorney.

Plaintiff Loyal Structured Settlement Planners resemble they sound... they work ONLY for the plaintiff side... and represent the defense in any case. Developing a Plaintiff Loyal Structured Settlement Planner on your team is very important because we're also through hundreds... or even thousands or negotiations and mediations for injury victims. These kind of Plaintiff Loyal planners be aware of sticking points of these transactions and discover how to turn the tides from the defense to your plaintiff.

Clause Work Required

You will find a certain set of clause work to be contained in the negotiations of an settlement. This clause work sets takes place to help you to take with additional hold of the immediate and ongoing expenses from the settlement.

The clause work should outline specific actions that ought to be taken and outline certain conditions. Among the the weather is the fact that defense won't limit the firms that the plaintiff can also work with to search for structured settlement bids.

The above mentined article contain interesting stuff about business purposes such as one called structure settlement so anyone want to find out with what exactly Structured Settlement is and what is the beneifit forBuy Structured Settlement these stuff contain inside it you will need to see clearly carefully.

Structured settlements can be a great way of getting money for urgent requirements. Keeping certain simple and easy tips in mind while selecting a buyer can help in making the most out of structured settlements.

Life can be quite unpredictable even for those who are extremely good at planning and predicting. Quite often, people are faced with unfortunate situations where their money gets swindled in financial institutions. Regardless of the size of the financial claim, a delay in getting financial help can prove to be quite frustrating and annoying. Selling structured settlement offers an appropriate and easy way out of such a situation. As a recipient, you will receive periodic payments according to a fixed payment schedule. This is a simple way of getting the cash that you so badly need for fulfilling your short term as well as long term requirements. Selling your structured settlement can be highly beneficial and it would be highly advisable to opt for it.

This type of settlement is perfect way to meet the immediate and urgent requirements of big sums of money for the beneficiary and this proves to be extremely helpful in the event of medical emergencies, marriages, etc. There are very few things that are better than cash structured settlement if you are in need of a quick payment. Another good thing that this type of settlement offers is that you can mortgage the documents of a settlement of this type for securing a loan against it. A number of buyers are there who are willing to provide a loan against such settlements. All these factors have helped in increasing the popularity of this type of settlements.

Structured settlement is a flexible instrument that is highly beneficial for the company as well as the claimant. On one hand it provides decent periodic payout to the beneficiary and on the other, it helps the company in deferring the liability. Selling of the settlement of this type for lump sum money can significantly help in maximizing the value of your settlement. So, if you are thinking about selling your settlements, it would be better to consider several factors before dealing with a buyer. It would be advisable that you look for a truly legitimate buyer so that you do not land in any type of problem in the future. You should also guard against a buyer who tries to take advantage of your structured payment annuities.

You should opt for a buyer who promises you timely and quick payments. It would also be important to select a buyer who throws some light on the procedure. Apart from this, stay informed about the legitimacy of the buyer as it is important to save you from bad buyers. Keeping the above-mentioned things in mind will help you in making the best out of your structured settlements.

Plain English explanation of the structured settlement process. Understand what's involved so you can win big. Discussion on Selling structured settlement, cash structured settlement, structured settlement, settlement payments and more.

Have you just been awarded settlement for injuries you sustained whilst at perform? If sure, is the quantity that you get now adequate to spend your health care charges, considering that the rest of the fund will be dispersed around the up coming 20 years? If not, then what can you do about that?

Structured settlement could function good for some folks, but definitely not for these who urgently require a big sum of cash to pay for hospitalization and soaring medical bills. The only choice you have is to offer your structured settlement and receive the volume that you need now. But offering these periodic payments is not a piece of cake. You have to discover a reliable structured settlement business to obtain your settlement./p>

Structured settlement companies both buy or sell structured settlements to give victims a 2nd selection to think about their payments and to provide people claimants who are in need to have with a huge quantity fairly than a long-term monetary safety.

If you want to offer your structured settlement, see to it that you market your payments to a reliable company, given that a transaction of this naturel cannot continue without having the ruling of a decide. Similarly, if you wish to obtain a structured settlement, you must appear for a reliable structured settlement company that you can trust.

Offering and purchasing structured settlements are transactions that you really should assume more than prior to making any selection. If you are thinking of selling or purchasing settlement payments to a structured settlement firm, you have to test initial with multiple organizations in order to get the greatest payoff possible. Also, make sure that the business that buys or sells structured settlement is nicely established and a reputable one particular.

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Structured settlements are an understanding on settlement payments between a plaintiff and a defendant where the litigant consents to the dismissal of the case in return for a financial settlement to be paid by the defendant.

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Structured settlement, the company is very similar to the other monetary institution, except that it has a very particular budget, which has been granted to buy settlement agreements , for example those granted to accusers.

Once you receive your payment, you might need to chat to a financial consultant. An adviser can tell you what you must do with the cash and may provide investment tips. He can also aid you in planning your monthly budget to ensure the cash doesn't run out.

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A good structured settlement agency must be in a position to assist you from the moment you've agreed to receive a structured settlement from the losing party to the day the last payment is made.

If your allowance is for Thirty years, which is pretty standard, and for sake of even numbers to work with, we could say it was for $1 million bucks. Your monthly income is perhaps around $5,000 a month, give or take a little.

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You can cash out your settlement by following these tips on selling structured settlements. Use the lump sum to pay off medical bills, debt, your house, or to invest for a rainy day. It is your settlement so if you make a decision to sell it make sure it is your decision to do so and not somebody else persuading you into it.

Structured settlements are a small percentage of personal injury settlements

A Towers Perrin study* reported that in 2006 $161 billion was paid to injury victims and their attorneys. If one assumes that one third of this amount represents contingency fees, then approximately $105 billion is paid to plaintiffs each year. New structured settlements are created at a rate of approximately $5-6 billion every year. According to Standard & Poors**, in 2004 the cost of all outstanding structured settlements was approximately $80 billion and was expected to grow by $6 billion that year. Also according to Standard & Poors**, as of 2008, there were more than 500,000 structured settlement contracts outstanding in the U.S.

Structured settlement payments offer flexibility for uncertain times and changing circumstances.

The average person does not know much about structured settlement payments. Without an understanding of the benefits of structured settlement payments versus lump sum payouts, most injury victims tend to choose a lump sum payment.

In fact, Joseph M. Costello, Chairperson of the National Structured Settlements Trade Association (NSSTA) Marketing Committee, reported at NSSTAs 2007 Winter Meeting and 2007 Annual Meeting that just 7% of personal injury settlements between $75,000 and $100,000 include structured settlements and only 30% of personal injury settlements above $1 million include structured settlements.

An AIG study*** conducted in 2007 shows that the less a person knows about structured settlements, the less likely he or she will choose a structured settlement. And, more importantly, the opposite holds true: the more a person knows about structured settlements, the more likely he or she will select a structured settlement instead of a cash payment.

In the study, AIG asked people how they would prefer to receive a settlement. With no explanation of the difference between a lump sum payment and a structured settlement annuity, 65% chose a lump sum and 35% chose a structured settlement. But after receiving explanations of the differences between a lump sum and a structured settlement, 73% chose the structured settlement annuity payments and only 27% chose the lump sum payout, a complete switch.

At the end of the survey, AIG concluded that the structured settlement industry needs to educate Americans about structured settlements.

Once they learned about the benefits of structured settlements, plaintiffs said that a primary reason that they would choose a structured settlement annuity is because it provides a reliable income for monthly expenses and guarantees financial independence. What may not be as clear to plaintiffs nowadays are the many options and the flexibility that a structured settlement offers.

Once a person receives the cash from the lump sum payment, he or she cannot simply change his or her mind and switch to a structured settlement payment. However, if an injured person chooses a structured settlement payment, he or she has the option at a later date to sell all or part of the settlement in the secondary market, for immediate cash, while still retaining a portion of the income stream.

Section 5891 of the Internal Revenue Code and the Structured Settlement Protection Acts at the state level give payees the option, with court approval, to transfer structured settlement payments from themselves to factoring companies who buy structured settlement payments. Given the flexibility offered by the buying and selling on the secondary market, structured settlement payments may be a better option for those people who are uncertain about whether to choose a structured settlement or a lump sum payment.

Very few people actually sell structured settlement payments

Out of the total outstanding amount of money currently held in structured settlement annuities more than $80 billion less than $800 million is transferred on the secondary market each year. That means that only about 1% of structured settlement payments are sold each year.

Only about 1% of structured settlements are sold or traded in the marketplace.

Not a lot of people sell their structured settlement annuity payments. In fact, 99% of people do not sell structured settlement payments. Those who do choose to sell structured settlement payments typically do so because their circumstances have changed, and they need the cash for a specific reason (medical procedure, debt reduction, education, etc.). The cash is used as an escape valve, to help people reduce some of lifes pressures so they can deal with a problem or an opportunity.

Life is full of changes: why should a structured settlement be forever?

Most homeowners buy houses using 30-year mortgages only to refinance many years before the end of the mortgage term. Consumers sign up for long term life insurance life insurance policies which are intended to be in force for extended periods of time. But then they stop paying the premium and let their coverage lapse. Why ? Because their lives change, their circumstances change. Maybe they can no longer afford the premiums, or maybe they can get better coverage elsewhere. The point is that, at the outset, the initial long term commitment made perfect sense, and then as life moved on, a change made more sense. Each year between 3.5% and 7% of all life policies are allowed to lapse by the insured person****.

Circumstances change. Lives change. A person who received a structured settlement as compensation for an injury may want to enroll in college or job training and may decide selling structured settlement payments for cash now is the best way to pay for his or her education. Or an annuitant who received a structured settlement as the result of an injury may have the opportunity to buy or renovate a house to better suit his or her way of life. Selling a structured settlement for a lump sum of cash may be a prudent way to cover the down payment on a house, pay off a mortgage, pay off taxes or to pay off credit card debt.

Even the insurance companies who issue structured settlement annuities recognize that there needs to be an escape valve. Most insurance companies include death commutation riders when they create structured settlement annuities. These riders allow an estate to cash out the deceased persons structured settlement annuityusually in order to pay estate taxes. In addition, two large insurance companies, Symetra Life Insurance Company and Allstate Life Insurance Company, recognize the need for an escape valve in other scenarios and will buy structured settlement annuity payments themselves.

Lawsuit awards are a mechanism by which our justice system tries to compensate victims for their damages. Structured settlements are a tool that helps to customize and maximize an award. A future stream of guaranteed payments is of great financial and emotional value for plaintiffs when they are feeling their weakest and most vulnerable, because it provides stability and comfort at the time that it is needed most, at the time of the injury. However, no one has a crystal ball - life changes and circumstances change, whether it is much needed surgery, a new roof on a family home or job re-training to react to new opportunities. And structured settlement payments can be sold for a lump sum of cash to meet these needs. The ability to access a portion of a structured settlement is a benefit that many industry professionals believe adds to the value and benefit of a structured settlement, allowing it to be utilized to the fullest.

In conclusion

As a society, we get divorced, even though we were not supposed to be parted until death; we re-finance 30 year mortgages decades before they come due; we commit to life insurance policies and then stop paying the premiums all in response to changes in our lives. So, it should not come as a surprise to anyone that recipients of structured settlement payments may need to sell structured settlement payments and cash out part of their payments in order to deal with lifes changes, challenges and opportunities.

At the end of the day, if 1% of structured settlement payees sell structured settlement payments in whole or in part, then, for them, the structured settlement is doing what it was set up to do: to provide them with the emotional and financial help when they need it the most. And for the 99% of annuitants who do not sell their structured settlement payments, the structured settlement payments will continue to provide the financial support that was intended at the start.

Structured settlements are a way for a person, company or insurance provider to pay out awards won in a lawsuit over a period of time. This is usually done on a bi-monthly or yearly schedule. This prevents large losses due to the results of a lawsuit again that person, company or insurance provider.

If you do have a structured settlement you can opt to get a large sum payment; this is called a settlement loan. This is when a provider buys out your remaining structured settlement payments for one large sum. You can also get pre-settlement loans before a lawsuit case has even reached a verdict. You should know the disadvantages before deciding if it's right for you.

The main downside is taxes. The money that you would receive from the provider is considered taxable. You would have to pay applicable taxes at the current state and federal rate for that calendar year. You'll also be responsible for self employment tax; this is the tax self employed individuals pay since they are not getting social security and Medicare withheld from their income. You should be aware of all tax responsibilities behind your settlement loan before making any decisions. I'd suggest speaking with a financial adviser that has worked with settlement loans in the past.

Another downside is the loss of money in your total structured settlement. The settlement loan provider will get a portion of the total amount owed over the structured settlements duration. This is different between settlement loan providers and private settlement loan investors. Usually, you can expect them to absorb 20% to 40% of the value of the entire structured settlement or on top of the settlement loan itself. You should make sure it's worth the cost before taking it out in the first place.

Reviewing this few disadvantages of a structured settlement loan it should be noted there are many advantages. First, if you're getting a pre-settlement loan you're not responsible to pay the loan back if you lose your case. Second, if your structured settlement is bought out to protect assets such as a car or home it can out weight the costs of the loan itself. Either way, neither of them require any specific income or credit history; making these available to anyone with a pending lawsuit or 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.

When you buy structured settlements with this thought in your brains, this instrument becomes rather a tool to manage your finances, than a profitable investment. The management idea is not bad, because the structured settlements are safe investments.

In most cases the court decides about the launch of the settlements, which means that it is not so simple to buy structured settlements as you may imagine. The court decision is always needed.

1. The Periodic Incomes.

Most structured settlement plans offer a series of the periodic payments rather than one lump amount. This looks a nice system but the financial risk increases also, because the future payments include always something surprising, an interest rate hike, for instance. On the other hand a receiver can get better profit from some other target.

2. You Cannot Borrow Against The Future Payments.

When you buy structured settlements you have to keep the schedule as such. It is not possible to use it as a guarantee to the loan. The idea is to protect the program and to keep the original idea. But the investment forms a jail and the only solution to release the money is to sell the program.

3. How About ROI?

ROI, or return on investment, can be good or bad depending on many things. When you buy structured settlements you know, what is the purchase price and how much are the periodic payments and when they come. What you do not know is the interest rate level during that period. If the inflation is high during the payment period, it will decrease the real profit every year.

4. Set Your Targets Correctly.

The settlements are meant to bring a financial security to the receiver, not to maximize the profit. But it offers also the profit potential as an investment, if the deal will be handled correctly and if there is enough luck in the process.

5. How To Get A Good Profit?

When you buy settlements you have to remember that the settlement is like all investment instruments. The value follows very much the general economic circumstances and the sellers motive to sell.

If you succeed to buy settlements during a recession and if the seller is known to be in an urgent situation, the chance is that you can get the settlement with a discount price. This is important thinking the future profit potential.

The secret to avoid the bad surprises is to know all the possible details in advance. If you cannot make this calculation by yourself, you better turn to the professional person, who can be the broker, banker or other specialist.

Benefits of Purchasing from Annuitant

Whenever an individual annuitant, who is receiving periodic payments under a Structured Settlement, desires to sell some or all of their future payments for a lump sum of money, the cash flows are sold at a discount in exchange for the lump sum payment. This discounted Structured Settlement is then available for sale to the Purchaser. This manner of securing the payment streams at a discount directly from the seller is how the Purchaser secures very favorable yields. This transaction is normally facilitated by a financial broker on behalf of the seller (or annuitant) and the purchaser.

These structured settlements normally earn more than two times the yearly rates of Municipal or Corporate Bonds, Bank Issued Certificates of Deposit (CDs), or Government Issued Treasury Securities. Investors can certainly purchase an annuity directly from an insurance company, but these Direct Annuity Investments are backed by the same insurance companies as the Structured Settlements arranged by a broker, and they are typically originated with large sales charges or commissions, and offer substantially lower yields.

The major benefits of purchasing these structured settlement annuities are:

1. Purchaser receives significantly higher yields than Purchaser can secure from comparable fixed rate investments.

2. Purchaser receives a fixed income over a defined period of time, based on the specific parameters of the purchased Structured Settlement.

3. Purchasers can aquire this asset to increase the yields in personal holdings, to maximize income at retirement, or to preserve principal for future years. They can be purchased by individuals, retirement plans, corporate entities, foundations, trusts, through investment clubs, or group investment accounts.

4. The Structured Settlement is backed or supported by annuity contracts issued by a rated insurance carrier. The insurance carrier that issued the annuity contract is state regulated and will generally have a Standard & Poors credit rating between "A-" through "AAA".

5. Purchaser has control throughout the investment process; Purchaser receives assignment of the Structured Settlement payment rights directly from the seller through an approved court approval process, and the Purchaser receives the future cash flows directly from the rated insurance company that is obligated to make the payments. At no time during the lifecycle of the asset should the broker have possession, or control, of the Purchasers money.

Considerations of Purchasing from Annuitant

1. The transaction process facilitates a court order of the asset directly from the Seller to the Purchaser. The broker does not own the Structured Settlement payment rights, and should not receive, hold, or disburse any of the investors money. This is NOT a fund, and the Structured Settlement payments are made directly to the Purchaser from the insurance entity.

If you have been awarded a structured settlement payment and have some input in how the payment schedule will be structured, here are some tips to help you make intelligent suggestions that are in your best interests.

One of the key factors in how frequently you would like to receive a payment from the structured settlement has to do with what the money needs to cover. As an example, if you are receiving compensation because of an accident where you were injured, you may need those payments to be set up on a monthly basis. The idea is that you may have medical bills or require some sort of ongoing treatments or home care that will need to be paid from the settlement. If this is an accurate picture of your situation, then ask for monthly payments that will cover your expenses related to the accident.

For situations where your settlement is taking place because of some sort of civil matter you have won, you may want to ask for payments from the structured settlement that occur on a semiannual or annual basis. The idea here is that you do not need the money in order to meet medical costs or even to take care of your usual household operations. However, you can take the larger payment and invest it in some manner. Rolling over the larger structured settlement payment into an IRA or other program may protect you from having to pay taxes until you actually begin to withdraw the funds. If you do not need the money from the settlement to take care of ongoing expenses, then get a larger payment less frequently and invest it in your future.

Your circumstances dictate how often it would be helpful to receive a structured settlement payment. Look closely at your needs and make sure that you understand which if the payment and investment options would do for you, and when you would reap the most benefits. At the same time, keep in mind what you need today as well as what you may need in the coming years, taking into consideration other income sources you have available to meet those needs. The point is to be well informed not only of your options, but how you can use the resources to best advantage. Once you are armed with a thorough understanding of what is in your best interests, ask for payment terms that will reap the most benefits for you both now and in the long run.

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.

The buying of a new house, the education of the children, the increased medical bills or the loss of a job can all lead to the increased need of a cash money. If you will meet these new circumstances, you can turn to the court judge and to ask, whether it would be possible to sell a part or all of your future structured settlements.

The reason for this process is, that the settlements were originally set by the court and the target was to guarantee your financial future with a plan, which will fit to your needs as good as possible.

1. Research The Potential Buyer.

When you plan to cash for structured settlement payments, you need a buyer candidate, who is reliable and long term operator in the industry. Think about the situation, when you think you will get the lump sum of cash money, and the buyer will not pay, or even worse, has become bankrupt.

An experienced broker can be really valuable by giving the needed guidance. He or she can also give names of the buying companies and guide about the taxation. The buying company must have a high court approval ratio, because that is a good sign of a trustworthy company.

2. You See Better Profit Potential.

The life circumstances can change quite dramatically. If you are the recipient of the settlement, you may not have the monthly financial needs anymore and you think you can make more profit with the money by investing them into some other instruments.

3. The Court Process.

The process with getting the settlement payments may vary state by state, but most states require a court order for you to get cash for structured settlement payments. However, the many recent rulings have made the process more streamlined and quicker.

4. How Much You Can Get?

The price from the sale of the structured settlement varies according to the many factors. These factors are the amounts of your annuities, the amounts and frequency of the payments, the present economic situation and how solvent is the issuer. It is wise to ask several quotes from several companies. If you have new dreams, just start the process and see, if it is reasonable for your new needs.

The typical reasons, why people get these programs, are the results of the legal proceedings. These programs are carried out by the insurance companies and are known as structured settlements, which are paid during a long period of time.

1. Monthly Payments Cover The Calculated Needs.

Usually, when people get the structured settlements, the monthly payments are planned to cover certain costs.

2. The Sudden Need For The Cash.

The typical changes in the financial circumstances are the sudden ones, like increased medical bills, house repair or education expenses. These create a new situation, where people start to think to cash for structured settlement payments to get a lump sum of cash.

When the seller wants to cash for structured settlement payments, it is important to understand, that the recipient will not get the whole sum of the settlements, because the money today is more valuable than the money in the future. That is the reason, why the buying companies will pay a discounted value to the seller.

3. Remember To Check The Buyer Backgrounds.

The first thing, before you start to ask quotes, is to check the background of the companies, because there are so many scams. All the companies from which you ask quotes must be long term ventures and legal ones.

4. The Financial Guidance.

If you have decided to cash for structured settlement payments, maybe that is not the wisest option for your needs. Maybe that was just the first idea you got and fell in love. Would it be wise to meet the financial advisor, who could once more go through your needs and to check, which of the alternatives would be the best one.

5. Do You Plan To Profit More From Some Other Investment?

The structured settlements have their pros and cons, but however they are quite profitable ones. The tax free feature is really a big plus and the security they can offer is valuable. If you still want to cash for structured settlement payments do it with care, because it is a very valuable plan.

Because the original reason for the structured settlement was different, the changed circumstances justify the selling. But because the whole issue is so sensitive, promise that you will do it with the experts and with good results.

The topics of broker assistance and compensation have been discussed at

length in recent months. In late December this debate became heated when John

Darer, a settlement planning consultant from 4structures.com, LLC went

head to head with Rhonda Bentzen, a structured settlement factoring broker doing

business as Bentzen Funding Solutions.

The debate between Darer and Bentzen revolved around whether or not it is

acceptable for you as a settlement planning consultant to charge a fee when you

refer clients to a factoring company. On this topic I would have to agree with

Bentzen that it is not unethical, per se, for a structured settlement planner to

charge such a fee provided such fee is reasonable in all of the circumstances.

My reasoning for this is as follows.

Similar to Bentzen, I have been on both sides. I was a life and annuity sales

agent for four years. I had created countless annuities for my clients and on

occasion when their financial positions changed I was asked to help them find a

way out of their annuity. This happened often enough that I found out about the

structured settlement factoring business and eventually changed my orientation

when I started Sovereign Funding Group in 2002.

Firstly as an insurance and annuities agent and now in the structured

settlement factoring business, I have always put my clients' best interest

first. I think that it is reasonable for a structured settlement planner or an

insurance and annuity representative to be compensated for his or her

professional assistance to clients when seeking out a reputable factoring

company and assisting with the sale details.

Where I disagree with Bentzen is when she states in her December 21, 2007

post that "...The referral fee ultimately saves the annuitant money and comes out

of my pocket". That statement is simply untrue. Contrary to her assertion, any

fee charged adds to the overall sale costs and impacts the best price available

to the client in the marketplace.

In light of the recent controversy I think that it is important to provide

some guidance to structured settlement planners and annuity company

representatives who want your clients to make an informed decision that best

serves their needs, gets them the most money for their annuity as well as the

fastest, most professional service.

1. There are many circumstances when a structured settlement may no longer be

appropriate for your client. Times change. Your client's assets must be flexible

to weather these changes.

2. You have taken great care to design a structured settlement that best

suits your client's needs. The factoring company you choose to advise on the

sale of your client's annuity should take the same care in deciding:

(a) is a sale appropriate in the circumstances, and if so what compliment of

payments ought to be sold;

(b) what is the best price available for these payments;

(c) what is the most expedient court process to complete the sale?

3. Each sale requires court approval based on the best interest test of the

annuitant and any dependants.

4. Purchase price and service level can vary widely between factoring

companies. Just as you would get competing quotes for structured settlement

annuities, you should get at least two quotes from competing factoring

companies.

5. Your client will generally get more money and better service if you

consult with a factoring company that specializes in the insurance field and has

legal expertise to complete the transfer process rather than a general buyer of

receivables or an intermediary who lacks control of the transfer or funding

process.

6. You should monitor the average length of time the factoring company you

choose takes to complete the transfer process and disperse funds to your client.

The benchmark is six to eight weeks. Unexplained delays beyond eight weeks will

cost your client money.

7. Throughout the transfer process the factoring company should keep you and

your client informed of the benchmarks and be proactive in resolving legal

issues that may arise.

8. In the case where your client decides to sell only partial payments, be

careful that your client does not agree to sell all payments in return for the

factoring company servicing the remaining unsold payments back to your client.

Servicing arrangements could jeopardize your client's recourse against an

annuity issuer in the event of a default. Furthermore, your client may not be

able to sell the remaining payments at a future date if they are serviced by a

factoring company.

9. It is acceptable for you to be compensated for your professional

assistance to your clients and referral to a reputable factoring company. You

decide. However, contrary to some assertions made in blogs, any fee you charge

will impact the best price available to your client. You should be careful that

your fee is reasonable in all circumstances.

Sovereign Funding Group has specialized in buying structured settlements for

6 years. We offer plaintiff brokers:

1. the benefit of six years of experience in preparing insurance annuities

and in-house legal expertise to make sure the transfer process is completed in a

timely manner.

2. the most money for your client's annuities by requiring our investors to

compete for each case thereby establishing the best market rate.

3. the fastest service by guaranteeing your client a price quote within two

hours of contact and sale documentation delivered the same day.

Compare our price and service level the next time one of your client's

contacts you. Call David Springer at 877-836-4661.

A structured settlement broker is someone who can help you when you want to sell your cash settlement award.

A structured settlement broker will be able to sell this settlement and give you a lump sum of cash.

If you happen to have won a great settlement due to negligence or malpractice that was done by someone else, you will find that it may be hard to be able to know how one can use the money gotten from such settlements.

A large amount of settlement can be divided into installments so that it can enable the defendant who lost to be able to pay it without so much strain.

What normally happens is that when you have won a large settlement, you will obviously look for a structured settlement broker who by authority given by the court will be able to buy the original contract and provide you with a large payment even though it will not be the full amount of the settlement.

The advantage of this process is that a person who will have the need to acquire the money immediately will be relieved as they will be able to cash in their payment through a structured settlement broker.

This means that in the case one was receiving such a settlement due to an accident, they can be able to offset outstanding hospital bills immediately.

Even though this might not be the case you will find that you can be able to invest this large amount so as to ascertain that you will have financial freedom in the future.

Some of these brokers can be able to give you ways on which you can invest the money that you have received wisely.

Care should be taken when you are looking for a structured settlement broker because some do not have the expertise that is associated in this line of work.

You will find that a broker might get you a deal that will not be as good as you expected. Try to find those brokers who have been doing such jobs for a long time.

This is because they will have a wider range of experience than those that have just started doing the business.

There is an organization that goes by the name of the Better Business Bureau where they list different experts in different categories.

From this list you can be able to find a broker who is certified to be an expert in this line of work. Further research can be done through the internet.