Large Funding Structured Settlements
A large structured settlement is a court appointed required payment in small increments over a predetermined period of time after the plaintiff settles in a law suit. For example, suppose a man was in a car accident. A truck driver ran a red light and the man was seriously injured so he decides to sue the trucking company's insurance company for the hospital bills as well as the income he lost being out of work with injuries. The trucking company settles with the man, and they agree on the sum of $150,000. The insurance company doesn't have $150,000 to just pay the man outright, so insurance company requests that the payment be structured. The court approves the payment extensions and the parties agree on paying the man $2500 per month for the next five years. Thus, funding structured settlements are far easier and more economical to do. Instead of having to come up with $150,000 right away, the insurance company only has to deplete its funds of $2500 a month. There are many benefits for both parties involved. One may be wondering if this type of payment arrangement is right for their case. By exploring all options, each person can make a wise decision.
One benefit is that the terms can be negotiated. The money can be paid over any amount of time as long as both parties can come to an agreement. Funding structured settlements can vary from months to decades, depending on the amount of money and the circumstances. This works to the benefit of both the plaintiff and defendant in the case. The defendant has extra time and less pressure to borrow to pay. The plaintiff receives the money in manageable amounts. Many people tend to lose control of large sums of money. With a large structured settlement, the plaintiff receives small amounts so the money doesn't all disappear at once. People have the tendency to spend more when they have more so money is depleted much more quickly when paid in a lump sum compared to payment over a period of time. This is especially true for cases involving college-age or younger plaintiffs. Young people usually don't have the financial responsibility and experience to handle large amounts of money responsibly. Thus enabling more money will be available for future expenses such as college courses and emergency or unforeseen medical complications.
This type of payment distribution also has tax benefits. Usually, when obtaining a large structured settlement , whether it be through a contest, lottery or law suit, the money is taxed up front. With a large structured settlement, tax payments are reduced or even sometimes completely non-existent. Most often, though, one can expect to pay some amount of taxes. Despite this possible tax-free benefit, there are a few disadvantages. People who want to invest large sums of money from their payments won't be able to do so under funding structured settlements. These investments tend to have a greater return than smaller investments made with smaller payments. Also, major purchases, such as the purchase of a home or car, will still require a loan rather than the large upfront payment that would be possible under a lump sum amount.
Before getting involved as a plaintiff or defendant, there are some factors to consider and think about. First of all, consult a lawyer or a financial consultant. They will be able to help decide what settlement plan is best for each unique situation. The lawyer may make a referral to a financial counselor in deciding payment. Knowing the attorney's intentions will also help. Some attorneys receive kickbacks for enrollment from certain firms and agencies that hold the annuity where the payments will come from. Make sure the lawyer isn't also working for the insurance company. This can be a conflict of interests. Watch out for excessive commissions being charge by the insurance company as part of funding structured settlements.
A serious factor to consider when choosing is the life expectancy of the injured party. A ten-year term might be good for the defendant, but the plaintiff may not expect to live ten years with the injuries they have. Also, it may be a good idea to work with multiple insurance companies should the plaintiff be at fault. This is good preparation should one of the insurance companies fail to pay their part of the large structured settlement or go bankrupt. Overall, it is important to trust God in each situation. If one really is at fault, take responsibility for all pertaining actions. If one really is the victim, don't be afraid to stand up and seek compensation for the resulting suffering. "Offer the sacrifices of righteousness, and put your trust in the LORD" (Psalm 4:50). As with any decision involving money, it is important to think carefully about accepting any large structured settlements. No matter what side one is on, it is important that each trust those who are on their side. There needs to be an attorney or insurance company that can be relied on.
Liquidate Structured SettlementsThe sale of a settlement structured allows a person to have access to all or part of their funds through a 3rd party company or organization. For a fee, they will transfer the annuity or insurance policy into their name and disperse all or part of the funds to the original owners as directed. Following a lawsuit, after winning a large amount of money, or an insurance annuity, the two parties involved in the payment of the funds agree on a settlement. For instance, should someone win $100,000 in the lottery, the lottery may pay out the $100,000 over 10 years or 120 months. Rather than paying the $100,000 at once, the amount is dispersed over time. This is a long term settlement. Many people find that when they liquidate structured settlements, it works to their advantage more than maintaining the long term payment option. There are companies that will purchase the payment plan from the owner. The 3rd party company will pay the owner the amount in nearly any payment plan preferred. This comes in handy when someone who normally would get $1,000 per month from a long term plan suddenly needs $5,000 to pay a medical bill. The sale of a settlement structured can be beneficial, but all of the disadvantages must be weighed as well.
Before even considering a sale, the plan owner needs to look at their state laws regarding the process. Many states have laws in place that restrict how to liquidate structured settlements. Should one have a tax-free policy, the plan will be subject to certain federal regulations so a person will need to be aware of these. However, when selecting a reputable company to handle the sale of a settlement structured, the company will know all of the laws, both federal and state, that apply and they will be sure not to break any. Using wisdom before even approaching a 3rd party company, entails consulting a lawyer about what laws are on the books. To liquidate structured settlements from annuities, one will need to talk to the insurance company involved. Some will not allow such an acquisition. Examine the agreement and terms of the annuities to see what policies the insurance company has in place or simply talk with a representative.
Long term payment plans are rigid and often difficult, if not impossible, to adjust, even if a person's financial circumstances become difficult. With the sale of a settlement structured, the owner has more flexibility. They get to choose a new payment plan and have the option of how much of their policy they want to sell. Thus, one can see many benefits after they liquidate structured settlements. One may be in a financial bind and more cash upfront can solve the problem quickly. One may want to make a large purchase, such as a home or car. For whatever reason, it may be impossible to obtain the loan for the purchase. With the money from a sale of the policy, the money can be obtained to pay for the home or car in full. When there is a medical emergency or bills are piling up, it is helpful to have access to large monetary sums. With money in hand, the choice to spend it now or save it for later is available. Investing large sums and receiving a greater return compared to only the small investments that can be made through long term payments is an option. Should one need money to invest in a business opportunity or to pay for college, the sale of a structured settlement can fund such needs.
Along with benefits, there are some disadvantages to liquidate structured settlements. Settlement companies don't work for free. They stand to make a profit in the sale of a settlement structured so there are fees attached. In addition, the sale must not only meet federal and state laws, it also has to be approved by the courts. Therefore, there is a chance that the sale could be denied. Another disadvantage is that there are companies out there that will try to steal the settlement and disappear. It is important to select a company that is licensed, insured and bonded with all decisions backed by a legal court order. Choose a company with years of experience and a professional staff. Get reviews online and ask around for recommendations. Remember that God is in charge of all things, including the ability to plan a financial gain. "He hath filled the hungry with good things; and the rich he hath sent empty away. He hath holpen his servant Israel, in remembrance of His mercy;as he spake to our fathers, to Abraham, and to his seed forever" (Luke 1:53-55). No matter what happens, God has control and is at the helm of a Christian's life. He works all things together for each ones own good.