Special Considerations

Any person entering into a structured settlement should be on guard for potential exploitation in relation to the settlement:
Excessive Commissions - Annuities can be highly profitable for insurance companies, and they often carry very large commissions. It is important to ensure that the commissions charged in setting up a structured settlement don't consume an inappropriate percentage of its principal.

Potential Disadvantages of Structured Settlements

Some people who enter into structured settlements feel trapped by the periodic payments. They may wish to purchase a new home, or other expensive item, yet be unable to muster the resources because they can't borrow against future payments under their settlement.

Structured Settlements Beware the Vultures

From:  Gary E. Rosenber 

            New York attorney
           personal injury and accident lawyer

Structured settlements are lawsuit settlements - usually from personal injury or accident cases - paid out over a time period of months or years. "Structure" refers to how the payments are made. There is infinite flexibility in making a payment schedule for a structured settlement.
The purpose of a structured settlement is to protect the accident victim from him or herself; most average people, especially after being seriously hurt or injured in an accident, might not be able to preserve a large monetary recovery that might have to last them a lifetime. So, for the benefit of such persons and their family or dependents, and to ensure their long-term financial security, money may be paid out to them over time.
Now come along outside companies that offer a lump sum of cash to persons receiving payments pursuant to a structured settlement. We've all seen the television commercials: "It's your money and you should have it now." These companies buy the right to the accident victim's future payments with a single, discounted, lump sum payment.

Low Interest Rates Raise Value of Structured Settlements

Jay Fisher

Low Interest Rates Raise Value of Structured Settlements 

Posted by Jay Fisher

August 16, 2011 8:38 AM

The Federal Reserve announced last week that it will keep mortgage interest rates low through mid-2013. But the bottom line is, many people still can't take advantage of the low mortgage rates because of unemployment, underemployment and the rising standards it takes to even qualify for a mortgage or to refinance. Banks are insisting on higher credit scores and larger down payments from applicants and people have too little equity invested in their homes or not enough income to qualify for refinancing.

Thoughts And Myths About Structured Settlements

There is a lot of information on the web regarding how to sell your structured settlement annuity payments. While some writers have valuable content, more often than not, readers will come across blog posts containing errors and mistruths. To distinguish fact from fiction, I took the most common myths about structured settlements to Rescue Capital's John Zepeda to get his take. 

• Myth #1 - Structured Settlement Payments are awarded by the Courts - A structured settlement is a financial agreement that allows court-awarded compensation to be paid in regular payments rather than in one lump sum. These arrangements are primarily used to settle personal injury or malpractice suits. Typically compensation is paid for a fixed period or lifetime. Sometimes they include a cash lump sum. Since every structured settlement is tailor-made the terms will vary