Buy A Structured Settlement
Funding companies which agree to buy a structured settlement, trust fund, or annuity help alleviate what can be an arduous wait for cash. While a settlement may be worth hundreds of thousands of dollars or more, the delay in waiting for periodic payments, spread out over several years or perhaps a lifetime, could drastically decrease the original value. Future compensation for personal injury victims, workers' compensation insurance claimants, lawsuit litigants, under aged heirs, sweepstakes winners, or investors which is dispensed over a lengthy period of time may not be beneficial when present needs are more demanding. Depending upon the amount of money awarded and the stipulations of a judgment, monies can take too long to collect before recipients can actually realize a significant benefit. Some claimants may actually expire before fully collecting cash payouts. Fortunately, there are companies which specialize in converting future cash into present lump sum payments.
Understanding how a structured payment arrangement works may clarify why individuals often choose to trade in claims for lump sum cash. Compensation is most frequently awarded as a result of personal injury lawsuits or workers' compensation claims. A third party funding firm collaborates with the offending party's insurance company and agrees to assume responsibility for the financial obligation owed to the claimant and buy a structured settlement. In return, the claimant agrees to drop the lawsuit and accept long-term periodic payments from the third party. The advantage to the individual or company responsible for a personal injury is that the case will not come before a judge. In an instance of personal injury liability, an impartial judge may award the injured party even greater damages than the claimant could conceive of demanding. Additionally, a lawsuit on public record may adversely affect the offender's credibility, reputation or viability in the marketplace. Once the claimant drops the lawsuit and agrees to accept periodic payments from the funding firm, the long wait to collect begins. While compensation for personal injury removes the offense, only the blood of Jesus can remove the offense of sin. "But God commendeth His love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by His blood, we shall be saved from wrath through Him" (Romans 4:8-9).
Getting paid in small installments may not do much to alleviate crushing debt or help bring the hopes and dreams for a brighter financial future to reality. The option of dealing with companies which agree to buy a structured settlement enables claimants to access a lump sum payout to meet immediate or future financial needs. Seniors living on a fixed income can realize a lifelong dream of retiring in ease, rather than eking out a meager living on long-term structured payments. Families can afford to pay college tuition or build a bigger home. Singles have access to cash to invest in starting a new enterprise or to take a dream vacation to a tropical island paradise. No matter what the dream or financial goal, when firms arrange to buy a structured settlement, the opportunities to enhance an individual's quality of life are increased. Take for example, a young athlete whose dreams of playing pro football may have been sidelined due to tragic car wreck resulting in permanent disability. Periodic payments from an insurance settlement may have been sufficient to cover medical bills, rehabilitation, and prescription drugs; but lifelong confinement to a wheel chair can be disheartening. By selling all or part of a long-term future income stream, the athlete can use the cash payout on a structured settlement to take online computer courses and open a home-based PC repair shop or become an Internet technician.
The most important advantage to dealing with companies which buy a structured settlement is that future dreams and immediate financial goals don't have to be put on hold. Mounting medical expenses and debilitating debt can be eliminated by cashing in on insurance policies, trust funds, or annuities. Cash-strapped consumers can convert a periodic payment agreement into tax-free funding to consolidate debt and pay off outstanding installment loans, home mortgages, or credit card accounts; all without having to borrow from a bank or high-interest hard money lender. Imagine how comforting it is to know that funds for a golden retirement, dream vacation, a new car or boat, or a custom-built dream home are well within reach, simply by taking advantage of one of the easiest financial options available?
The process for finding a firm to buy a structured settlement is relatively simple. Individuals can type "structured asset funding" into a search engine and click on any number of links to company sites. Most online agencies will feature electronic forms which request the individual's name, address, phone, and email, along with a brief description or indication of the type of policy, fund, or annuity for which the applicant is currently receiving periodic payments. Safe and confidential sites collect initial data online or offer a toll-free number. Web-based agencies offer free quotes based on user data, including an individual's unique financial situation and intended purposes for a lump sum payout.
While some firms that buy a structured settlement make claims of fast cash conversion, it is best to allow 90 days for an application to be processed. The speed at which an application is reviewed is largely determined by the amount of documentation applicants are able to furnish. A copy of the insurance policy, trust fund or annuity can be assessed by the company's financial counselors to determine how much each compensation package is worth. Because periodic payments are guaranteed, firms which buy a structured settlement usually do not require high credit scores or lengthy financial documents. And just as long-term compensation is tax-free, so are lump sum payments. Cash can be deposited electronically into applicant's bank account, sometimes within 24 hours, or mailed via secure funds. With well-deserved ready cash in hand, applicants can begin to realize present and future dreams with little or no hassle.
Buyer Of Structured SettlementsThe buyer of structured settlements will be a very experienced and astute business person or firm that has years of successful buying these particular kinds of financial agreements. These buyers are often the life saving solutions for many people who have a few hundred dollars trickling in each month from such a structured settlement. For example, a person who has been hurt in an auto accident and has received a three hundred thousand dollar judgment may have received an annuity for the insurance company worth twenty five hundred dollars a month for ten years. Annuity income is not taxable in many situations, but a tax specialist should be consulted before making any assumptions. This twenty five hundred dollars may seem quite reasonable at the time of the judgment, but a year later the recipient of the annuity may want to buy a house and will need twenty percent down to make the purchase. It is at that point that the buyer of structured settlements can step in a make a difference.
Lottery winners are recipients of annuities all the time. The choice is to receive a monthly or yearly payment for twenty years for the full amount, or take a lump sum payout quite similar to an offer from the buyer of structured settlements. In most cases, lottery winners want that lump sum payment, even though the payout is substantially smaller than the annuity would be over the twenty years. There are things to do, places to go, stuff to buy and hopefully humanitarian and faith based charities to support and the monthly or yearly stipend won't support such grandiose affectations. But settling for a much smaller but still powerful piece of the pie smack dab on one's plate immediately is mighty pleasing to many recipients' eyes. Where is the safe place you run in times of trouble? Christians have the perfect place: "the Lord is my rock and my fortress, and my deliverer; my God, my strength, in whom I will trust; my buckler and the horn of my salvation and my high tower." (Psalm 18:1)
But it's not only annuity holder or lottery winners that can become fast friends with a buyer of structured settlements. Consider the guy who, a few years ago, bought a number of mortgage notes from various homeowners who couldn't sell their house. Mortgages that were sometimes half of what the houses were worth and so he is renting them out. But this holder of real estate notes is now facing hard times himself and needs to sell these notes to alleviate the cash flow problem. A buyer of structured settlements might be very interested in these real estate notes, as long as the price is right.
When a client walks into the office of a settlement buyer, most of the time the buyer already knows that the prospective client is probably over the proverbial barrel and swimming in pickles. The client wants something he cannot have with the money he is getting now monthly or yearly so either bad luck circumstances or greed has taken over the thinking. Sometimes it's just a control issue as displayed in some commercials where the monthly recipient says, "It's my money and I want it now!" It's a wonderful thing that someone who is in true need of cash now can get it through the services of a buyer of structured settlements, but if it is a case of greed or control, why not seek some counseling before going ahead with the deal? It may be a decision that will be gratefully appreciated in years to come.
The issue about selling a structured settlement is the tremendous hit a person will take on the overall value of that settlement agreement. The buyer of structured settlements may be a very nice person, and his service may be a wonderful thing for your situation, but make no mistake, unless he has a more powerful motive for doing his job than making money, The holder of that structured settlement is going to take it on the chin. Fifty or perhaps even sixty percent of the value of that agreement will be wiped out in the lump sum transaction that is just about to take place. For an annuity that is only paying one hundred dollars a month, six or seven thousand in hand may make more sense. But surrendering tens or hundreds of thousands of dollars in value may want to be seriously examined before undertaking.
Picking a structured settlement purchaser can be a daunting task because there are so many of them. The advertised firms on television are certainly well known and there are many that are available on the internet but choosing any service that involves so much money ought to not be considered lightly. There are some less than fully honest or customer friendly buyers than they ought to be, so here are a few things to do as the process gets started. First, honestly assess the need to get a lump sum, because if one is prone to spending rather haphazardly, the money could be gone in a relatively short amount of time. Secondly, do some exploring with several different companies. Ask for references and names of different customers of the buyer of structured settlements and then check with the Better Business Bureau to see how many complaints have been filed on the company. But complaints aren't so bad because there are always unhappy people, it's how the company deals with them, so make sure and ask about them before doing business.