Structured Settlement Companies – How They Will Approach You
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.
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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