Sell Structured Settlement, Your Knowledge Resource Sell Structured Settlement Fri, 18 Mar 2011 15:47:53 +0000 en hourly 1 A Structured Insurance Settlement – The Pros and Cons Fri, 11 Feb 2011 00:57:06 +0000

If you get an insurance case go in your favour, you will often be offered to have the payments in a Structured Insurance Settlement. This means that instead of getting the money in one lump sum, you receive the money in regular fixed payments.

It may be monthly payments, it may be a larger payment every few years, but it will be agreed and set out in advance. So, what are the pros and cons of taking such a deal? Let’s look at some advantages first…

The deal may be agreed as part of an out of court settlement. Whoever you have won against may not want the costs or publicity of a court case, and may offer this kind of agreement to stop the case going to court. As a result of court cost savings, this may mean a higher amount being offered to you.

Structured Insurance Settlement

A regular payment deal is often treated as tax free. If it comes under the category of ‘special income’, then the tax savings could really make a difference over what you would get after tax on a lump sum.

Another advantage is that you can make financial plans. Because you know you have certain payments coming at certain times, you can make budgets accordingly. You may have ongoing medical needs, for example, which need to be accounted for. Or, it may just be normal household expenses – the fixed nature of the payments can bring peace of mind.

It will also stop any urge to spend the money all in one go, or allow a ‘drip drip’ leak of a lump sum, which can drain the money very quickly if uncontrolled. Quite a few plus points to a Structured Insurance Settlement there, but let’s look at the main negative point…

Disadvantage of a Structured Insurance Settlement

The main disadvantage of this type of arrangement is the simple fact of not having the lump sum in the first place! Knowing you have regular payments in the future may make planning easier, yes, but it will not help if you need money in the present.

You may have something break down, like a car or boiler. It’s then frustrating having to deal with that problem without money, knowing full well that you have money due in the future.

Or maybe your circumstances have changed so much that the regular payments simply are not needed. If that’s the case, those payments effectively become ‘bonus’ money, and it can be frustrating to only get it bit by bit. Maybe you may want to spend the money on a holiday or something else, and wished you had gone for the lump sum originally.

Structured Insurance Settlement Summary

You can get round this problem, though, because with the regular payment option it’s always possible to sell it on. Be prepared to get substantially less than you would if you held on to the settlement for yourself though.

All in all, the longer term deal seems to have more advantages, and the disadvantages can be worked around. Remember it’s your decision though, and should be made with appropriate professional advice.

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How Are Structured Settlement Loans Different To Selling Your Settlement? Thu, 10 Feb 2011 14:46:50 +0000

Structured Settlement Loans are pretty much what they sound like – a company will lend you money against the future payments you’ll get from your settlement.

That is not the same as selling it. Both options are ways for you to get hold of the money early, so you might think there’s no difference, but in fact the difference is quite marked. Read on to find out why…

When selling your settlement, you will basically transfer the future payments, or part of them, to the new company. You will no longer get the future payments you sold.

Facts about Structured Settlement Loans

With structured settlement loans, you will still get the future payments, but will have to pay back whoever you got the loan from. That’s the difference in a nutshell, and it can cause you problems. Here’s an example…

Structured Settlement Loans

With the selling option, when you get the money, you could in theory go out and blow the lot on a fancy sports car. That would be your choice, and the money would be gone. You won’t be getting the future payments, because you sold those to get the money you’ve just blown on the car.

With the lending option, if you went out and blew it on the same fancy car, you would still have to pay the lender back. Yes, you will still be getting the regular payments from the original settlement, but it’s interest payments which could cause a problem.

This is a key point that lending companies have tended to exploit. To get your business, they will offer a higher original payout, but not explain the interest well enough. Then, when your original structured payment arrives, you find it is not enough to cover the loan repayment plus the interest. When you struggle to pay the interest, the lender goes to the legal system to get the money. It’s a risky strategy on their part, but it can make big profits.

Often people receiving the settlements in the first place are vulnerable, and if you combine vulnerable people and money, there will surely be someone ready to exploit them.

Structured Settlement Loans

With the loan option, it is essential that you make proper financial plans. In all probability, the interest payment will be taken into account when you draw up the lending agreement. You already know that cashing in settlements will give you less in the short term than you would have got in the long term. With a loan agreement, it’s best to make sure the amount you get in the short term is low enough, that when the regular payment arrives, it is high enough to cover the loan money *plus* the interest.

Structured Settlement Loans Summary

That brief explanation of the difference between getting a loan and selling hopefully helps you research both options. It also drives home why you must get professional financial and legal advice. Either choice can work perfectly well. They both give you access to some, or all of the settlement money. You can ‘cash in’ part of your payments or the whole lot, but under no circumstance should you take the first offer you come across. Sales staff will be well trained to get your signature – for the benefit of their company rather than you!

I’m not saying that all companies in this field are crooked, not at all, but you must not let the lure of early money blind you to bad deals

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Structured Settlement Companies – How They Will Approach You Wed, 09 Feb 2011 18:43:13 +0000

Structured Settlement Companies may be part of larger organizations, or they may be individual companies. However they are set up though, be sure about one thing – they are out to make money. Be *very* sure about that, because they want to make that money at your expense!

That may sound harsh or glib, but it’s a basic fact, so if you are deciding whether to deal with one or not, you must step back from any fancy advertising to get a clear opinion of the company. Here are the 2 main time points when they will try to get you to sell to them…

Facts about Structured Settlement Companies

Structured Settlement Companies often try to strike ‘when the iron is hot’. This means they try to buy settlements from people who have only recently been awarded them. This gives them the most opportunity to make money, firstly because they have long term future payments to play with, giving them a wider scope of options to use the money. They can either invest the payments to generate profit, or simply wait for the whole settlement to cycle through, knowing they paid you less for it.

Structured Settlement Companies

Secondly, buying settlements early in their early stages means they have a more attractive product if they are the type of company that looks to turn around and sell the whole deal on again.

When you are early into your settlement, and it may only be days, you need to remember one thing if (or more likely, when) you get bombarded with offers. That one thing you need to remember is that you have only just had the deal made!

Your professional advisors would have made the decision with you as to why the long term structured settlement was best for you. Those reasons probably still stand, otherwise you would have pressed for a lump sum in the first place. With that being the case, why on earth would you now want to turn round and sell your package for a lower price? No logical reason, except being swayed by appealing advertising or slick selling.

Another hot time for Structured Settlement Companies to move in, is after a good chunk of time has passed. The payments have been arriving for a long time, and the process is an established one, you are used to it.

The company will now base their advertising on the angle that you no longer need the payments spread out, that now is the time to cash in and enjoy the bigger lump sum to spend as you choose.

Structured Settlement Companies Summary

It’s a reasonable thought which you may not have considered yourself, and it’s exactly why the companies go for this stage of your settlement to present that offer. You are better placed at this stage to make a sensible decision – for one thing you will not be under the stress and strain of the original case. Any medical conditions may have eased, and the option of taking a lump sum may be an attractive one.

So those are the two hottest times for you to be approached, but remember any opinion you form yourself of a company is not enough. You must also get professional legal and financial planning advice.

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Companies Who Purchase Structured Settlements – Should You Always Steer Clear? Tue, 08 Feb 2011 18:54:13 +0000

You’ve recently won a legal case, and you get approached by several companies that purchase structured settlements. You’ve heard all about them and their bad name, so you should just run a mile, right? Well, not in every case – there can be solid reasons to look closer, so read on to find out more…

Facts about Purchase Structured Settlements

So, the first question to ask is – why they do it! The answer – to make money! There are different ways they make their money, but it can be summed up by two methods. One way is to invest the payments they get. The payments over the course of the settlement will already add up to a lot more than they paid for them – investing the payments just allows them to make even more money!

Purchase Structured Settlements

Or, they can sell the whole package on. The price they pay you will be so far below the full realisation value of the settlement, that they will still have plenty of room to sell on to another company for a quicker profit, and let this new company worry about long term investing.

These companies have a bad reputation – partly due to a cowboy element who do not operate within ethical or legal limits. It’s also partly due to a perception that they are preying on the vulnerable, often people who have medical conditions that need long term treatment.

This reputation is not helped by the fact that they have become a bit like ‘ambulance chasers’, except in this case they are ‘lawyer chasers’.
The existence of your settlement award will be in the public domain, and your details will be a valuable commodity. That’s how the companies that Purchase Structured Settlements will know about you, and come offering you a deal very quickly after your award.

Ok, before we tar the whole industry with a bad brush, it must not be forgotten that there are companies in this field that operate perfectly legally and ethically. It may be that selling your settlement is a good deal for you. Yes, you will get a lot less than the original award, but you will get the cash early.

Purchase Structured Settlements

Maybe the other party in the legal case ‘bumped’ you into accepting the deal, and it appeared the only option. Or, how about if you were lucky enough to win the lottery? Maybe then you would want a chunk of that cash early. Remember you do not have to sell all of the deal in one go; you can sell some of the payments, or parts of each payment, giving you a mix of early cash and long term payments. These circumstances may mean that companies wanting to Purchase Structured Settlements are welcome, rather than being the big bad wolves!

Purchase Structured Settlements Summary

A lot of states in the US do not allow the sale of settlements anyway, in which case the whole question is academic.
If you are allowed to sell, make sure you use due diligence in investigating the company. Using a broker is probably a good move, as they will be well versed in the type of deals around, and the reputations of the companies. Then a lawyer should be involved to tie up the legal loosed ends.

It should not be a quick decision, nor should it be an instant process – anyone suggesting otherwise probably should be avoided, but you don’t necessarily always have to run in the opposite direction just because someone offers to buy your settlement!

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Welcome to Sell Structured Settlement Mon, 07 Feb 2011 14:44:27 +0000 Welcome, we are pleased that you have found our site. On these pages, we will attempt to clarify some of the concepts and issued involved with the world of how to a sell structured settlement. We hope the offerings will be beneficial to you and you our site a regular stop on your quest for answers.

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