Friday, March 31, 2006 

Ninth Circuit Holds UCC Does Not Apply to Structured Settlement of Tort Claim

A bankruptcy appellate panel (BAP) of the U.S. Court of Appeals for the Ninth Circuit has held that the security interest provisions of the new Uniform Commercial Code do not apply to a structured settlement of a tort claim.

In Singer Asset Finance Co., LLC v. Gallagher (In re Gallagher), 331 B.R 895, (B.A.P. 9th Cir. 2005), Gallagher settled a tort claim arising out of the death of her father by agreeing to accept scheduled payments over time. The defendant’s insurance carrier funded the settlement by buying an annuity from a life insurance company....

http://www.mondaq.com/article.asp?articleid=38828&lastestnews=1

 

Loan Against Senior Life Settlements

Life settlement describes the sale of a life insurance policy to a third party buyer and receiving a lump sum amount in cash. When a policy is settled, the original owner is no longer responsible for paying the premiums and will not receive any amount on the maturity of the policy. But if the owner wishes to keep the policy and yet have an urgent financial need, the simple solution is to borrow a loan against the policy.

While borrowing a Life Settlement Loan, the borrower has to clearly state the reason for the financial requirement. This is not the case in settlements, as there no questions are asked about the way the money is to be used. Also, the loan will have to be repaid over a period of time, in monthly installments, as the owner will be keeping the policy. The advantage is that the policy will be still the owner’s asset and the owner will get the amount of the policy on maturity with all the applicable interests accrued.

For borrowing the loan, the senior adult has to approach the company on which the policy is written. An application form is required to be filled in, which includes personal details about the owner along with the details of the policy. The amount of the loan sanctioned depends on the face value of the policy; it is usually calculated on the basis of a percentage of the policy value.

This amount varies from company to company. The company also decides the tenure for the loan and the installments to be paid, applying the rate of interest at that moment. The companies withhold the policy papers until the loan is repaid and the policy is locked. However, the senior adult continues to pay the premiums on it, along with the installment of the loan.

Loan borrowing for senior citizens against their settlement policies is a simple process if their papers are in order. Insurance agents help to quicken the process, but they charge a small percentage as their fee, either from the borrower or the lender; usually the former is the case.

Senior Settlements provides detailed information about senior settlements, senior life settlements, senior life settlement providers, licensed senior settlement company and more.

Senior Settlements is the sister site of Cash For Annuities Info.

 

Loan Against Senior Life Settlements

Life settlement describes the sale of a life insurance policy to a third party buyer and receiving a lump sum amount in cash. When a policy is settled, the original owner is no longer responsible for paying the premiums and will not receive any amount on the maturity of the policy. But if the owner wishes to keep the policy and yet have an urgent financial need, the simple solution is to borrow a loan against the policy.

While borrowing a Life Settlement Loan, the borrower has to clearly state the reason for the financial requirement. This is not the case in settlements, as there no questions are asked about the way the money is to be used. Also, the loan will have to be repaid over a period of time, in monthly installments, as the owner will be keeping the policy. The advantage is that the policy will be still the owner’s asset and the owner will get the amount of the policy on maturity with all the applicable interests accrued.

For borrowing the loan, the senior adult has to approach the company on which the policy is written. An application form is required to be filled in, which includes personal details about the owner along with the details of the policy. The amount of the loan sanctioned depends on the face value of the policy; it is usually calculated on the basis of a percentage of the policy value.

This amount varies from company to company. The company also decides the tenure for the loan and the installments to be paid, applying the rate of interest at that moment. The companies withhold the policy papers until the loan is repaid and the policy is locked. However, the senior adult continues to pay the premiums on it, along with the installment of the loan.

Loan borrowing for senior citizens against their settlement policies is a simple process if their papers are in order. Insurance agents help to quicken the process, but they charge a small percentage as their fee, either from the borrower or the lender; usually the former is the case.

Senior Settlements provides detailed information about senior settlements, senior life settlements, senior life settlement providers, licensed senior settlement company and more.

Senior Settlements is the sister site of Cash For Annuities Info.

Thursday, March 30, 2006 

Pros and Cons of Structured Settlement Mutual Funds

How often do you find yourself saying: "I wish I knew how to learn more about structured settlement mutual funds"


Well, this article about structured settlement mutual funds was written with you in mind. Enjoy.


Among the options open to you if you've received a structured settlement from a lawsuit or arbitration is what's known as structured settlement mutual funds. You should take some time before you choose an investment vehicle for your settlement money and learn the pros and cons of the mutual fund option.


Always keeping your long-term financial security in mind, structured settlement mutual funds offer advantages and disadvantages when compared to other investing options.


When you are awarded a structured settlement, an insurance company sets up an annuity in order to pay you small portions of the money at regular intervals. The safest option is to keep the money"in house" and get a guaranteed scheduled payment that will never change. The downside to going this super-safe route is that your money will not grow (much, if at all).


With structured settlement mutual funds, however, the money is invested in one or more mutual funds. Mutual funds are groups of individual equities (stocks), the make-up of which is closely managed in an effort to maximize returns. The individual stocks in any mutual fund can change regularly.


This introduces an element of risk - sometimes significant risk. So, if you have your structured settlement money in a structured settlement mutual funds set-up, you have the potential for higher rates of return, but you also incur more risk that you'll lose some of your money.


In most structured settlements, the annuity that is set up is guaranteed. You are assured of getting the same amount, month in and month out, until the settlement money runs out. It's a good option for those seeking to avoid any risk.


As you've read until now, structured settlement mutual funds is a subject that needs knowledge and effort to work around. And the information in this article was gathered from several resources.


There are some more gems of wisdom in what follows - keep reading.


Structured settlement mutual funds are not guaranteed. The upside is the potential for earning more if the mutual fund's value increases. It's like getting a raise, but it isn't a sure thing.


From a tax standpoint, income you receive from a fixed annuity is tax-free (in most cases). However, structured settlement mutual funds are subject to capital gains taxes and the possibility of some income taxation. Keep in mind that if your mutual fund loses money, the losses can be written off of your tax bill (under most circumstances), so it's not all bad if things don't go well.


Choosing a standard structured settlement fixed annuity means you are locked into a set payment amount and schedule. If your needs change down the road, this may cause you some financial hardships. With structured settlement mutual funds, you are allowed to move money around (within certain strict limits) from fund to fund. This will allow you to adapt to changes more readily.


As should be clear by now, this is not an easy decision. There are many pros and cons, whether you choose structured settlement mutual funds, the fixed annuity option, or any other alternative. This is one reason why it's a smart move to enlist the services of a competent lawyer who specializes in this area of the law. It's also wise to educate yourself as thoroughly as possible before making the final decision.


The day will come when you can use something you read here to have a beneficial impact. Then you'll be glad you took the time to learn more about structured settlement mutual funds.


Ken Austin is the webmaster at Structured Settlement Tips and Structured Settlements and Annuities

 

Personal Injury Settlement Amounts

The amount of personal injury settlement depends on many factors, and there is no fixed value for any compensation package. The amount settled on depends on factors like age of the claimant, severity of injury, net financial loss, medical expenses incurred, medical prognosis, extent of liability, etc.

There is no minimum or maximum compensation amount limit set by law, since amounts vary greatly from case to case. The following examples give you an idea of the compensation due in cases of personal injury.

A construction company, for example, paid a compensation of $2,000,000, when held liable for the death of a young man caused by unsafe construction. A retail store paid out $1,000,000, when a claimant suffered serious neck injuries when a display fell on her. A nursing home paid $1,000,000 for medical negligence when an Alzheimer’s patient was injured due to the absence of a nurse on duty. Injury due to an automobile accident aggravated a victim’s previous neck injury, and the he was paid $5,000,000 in compensation.

The highest compensation values are given to those plaintiffs who are young and healthy. This is because the jury takes into consideration the financial loss and mental anguish caused to those victims who would, in all probability, have been highly productive had they not been injured or handicapped.

Severity of injury is another factor. A first degree burn which heals quickly and leaves no scars is compensated by a minor amount. But a third degree burn, if spread over 50% of the body, for example, can claim up to $8,00,000, as in a case where a coal mining company was sued when a minor needed an amputation due to the company’s negligence.

Lost wages are also considered when settling such cases. The court takes into account the occupation of the claimant, education levels and future prospects when awarding a compensation amount.

It is also important that the plaintiff come across as someone sincere who genuinely needs help, and not an opportunist just waiting to sue due to financial motives. The personal injury settlement amounts are meant to help those in distress get on with life, and not simply a financial “dole”.

Injury Settlements provides detailed information about injury settlements, burn injury settlements, hydrocodone injury settlements and more. Injury Settlements is affiliated with Debt Settlements.

 

Personal Injury Settlement Amounts

The amount of personal injury settlement depends on many factors, and there is no fixed value for any compensation package. The amount settled on depends on factors like age of the claimant, severity of injury, net financial loss, medical expenses incurred, medical prognosis, extent of liability, etc.

There is no minimum or maximum compensation amount limit set by law, since amounts vary greatly from case to case. The following examples give you an idea of the compensation due in cases of personal injury.

A construction company, for example, paid a compensation of $2,000,000, when held liable for the death of a young man caused by unsafe construction. A retail store paid out $1,000,000, when a claimant suffered serious neck injuries when a display fell on her. A nursing home paid $1,000,000 for medical negligence when an Alzheimer’s patient was injured due to the absence of a nurse on duty. Injury due to an automobile accident aggravated a victim’s previous neck injury, and the he was paid $5,000,000 in compensation.

The highest compensation values are given to those plaintiffs who are young and healthy. This is because the jury takes into consideration the financial loss and mental anguish caused to those victims who would, in all probability, have been highly productive had they not been injured or handicapped.

Severity of injury is another factor. A first degree burn which heals quickly and leaves no scars is compensated by a minor amount. But a third degree burn, if spread over 50% of the body, for example, can claim up to $8,00,000, as in a case where a coal mining company was sued when a minor needed an amputation due to the company’s negligence.

Lost wages are also considered when settling such cases. The court takes into account the occupation of the claimant, education levels and future prospects when awarding a compensation amount.

It is also important that the plaintiff come across as someone sincere who genuinely needs help, and not an opportunist just waiting to sue due to financial motives. The personal injury settlement amounts are meant to help those in distress get on with life, and not simply a financial “dole”.

Injury Settlements provides detailed information about injury settlements, burn injury settlements, hydrocodone injury settlements and more. Injury Settlements is affiliated with Debt Settlements.

Tuesday, March 28, 2006 

Issues Surrounding Structured Settlement and Reverse Mortgage Choices

Current info about structured settlement and reverse mortgage is not always the easiest thing to locate. Fortunately, this report includes some interesting information on structured settlement and reverse mortgage.

Both a structured settlement and a reverse mortgage allow recipients to draw income from sources that will give them the opportunity to outlive their financial obligations and maybe pass on a bit to relatives. It's about peace of mind. With both, issues are involved that need to be understood in order to make the wisest decisions.

How a Structured Settlement Works

A structured settlement is an award of money resulting from an injury or illness suffered because of a company's legal culpability or responsibility. Depending on how the recipient decides to get the payment, it can be paid over several years in a fixed annuity, invested in a mutual fund, or sold outright for one lump sum payout.

The most common choice is to place a structured settlement award into an annuity. The payments are set in stone up front and paid out on a regular basis, making it entirely predictable and stable. In most cases, the payments from a structured settlement fixed annuity are entirely tax-free, as long as the money was awarded as the result of physical injury or illness. An insurance company provides and manages the annuity, which keeps the money in its 'in house' account.

How a Reverse Mortgage Works

How can you put a limit on learning more, especially when the topic is about about structured settlement and reverse mortgage? The next section may contain that one little bit of wisdom that changes everything.

The federal government's Dept. of Housing and Urban Development (HUD) concocted the most common form of reverse mortgage - the reverse annuity mortgage. To qualify, you must be at least 62 years of age and live in the home in question. The mortgage must be paid in full or have a large amount of equity built up. The government insures your reverse mortgage, so it's fully protected. The purpose in establishing reverse mortgages set up around annuities is to give aging folks the opportunity to draw income from the equity in their homes.

Once approved for a reverse annuity mortgage, the homeowner receives regular, tax-free monthly payments. This type of mortgage is later paid when the home is sold or passed on to surviving relatives. In some cases, reverse mortgages can be paid in one lump sum to the homeowner. Qualified people can even open up a line of credit that is secured by the reverse mortgage. Basically, the amount a homeowner qualifies for is determined by age, credit rating, amount of equity, and the interest rate for which they qualify.

Structured Settlement and Reverse Mortgage Scams

Unfortunately, both structured settlements and reverse mortgages - because they deal with large sums of money - are rife with scammers seeking to make a quick buck off unsuspecting people. To avoid this unattractive possibility, it's smart to hire a competent attorney who is well versed in these aspects of the law. You should also educate yourself fully about all the options available to you before you make any firm decisions.

When word gets around about your command of structured dettlement and reverse mortgage facts, others who need to know about structured settlements will start to actively seek you out.

Ken Austin is the webmaster at Structured Settlement Tips and Structured Settlements and Annuities.

Friday, March 24, 2006 

Options for Lawsuit Settlement Winners Receiving Periodic Payments

On January 22,2002, President George W. Bush signed into law a bill that protects individuals who must sell their structured settlement payments to meet unplanned financial needs. H.R.2884
Victims of Terrorism Tax Relief Act of 2001 (Signed by the President January 22,2002))


Under a structured settlement, a lawsuit plaintiff will not receive compensation in one lump sum but will receives a periodic stream of payments according to the terms of the structured settlement. This bill makes it mandatory for individuals to seek court approval when they sell their structured settlement payments to meet some urgent financial need.


Sometimes circumstances in life arise for individuals who are receiving a structured insurance settlement. Now they are in a position to consider selling all or a portion of their scheduled payments in exchange for a lump sum of cash upfront. Researching and exploring for the best deals available will definitely prove beneficial to the individual who is selling their insurance settlement. Big picture wise, don't rush, be sure to do your homework before selling a structured settlement and find out what the best terms and options are available from a buyer of structured settlements.


Some quick tips when searching for a settlement buyer:


1. Call around and compare information and rates
2. Check your top option with the Better Business Bureau
3. Consult an attorney, financial planner, and/or tax advisor
4. Ask Questions


Since your future and plans are at stake, acquiring necessary knowledge and information well in advance, is a simple matter of common sense.



Jason M Rigler
National Director
Prosperity Partners

Thursday, March 23, 2006 

A Structured Lawsuit Settlement Seemed Like a Good Idea at One Time

You are receiving payments spread out over months, years, even a lifetime. It's great when the money arrives but the payments are often too small or too spread out to really satisfy your needs. Careful research could yield more of your cash faster. There are some half dozen financial institutions with the knowledge and resources to effectively advance your future lawsuit payments.While the rewards are obvious, the risks are not so easily understood. Once you identify an annuity buyout funding source, consult your attorney for an explanation of the legal requirements.

Beware some of the following pitfalls when obtaining an advance on your future lawsuit payments.

It takes time.In most cases the industry-wide standard is several months. Some companies will tell you they can get your deal processed in weeks. Unfortunately, courts do not operate that quickly. Most people want a set time frame and need the money right away.

You have to go to court.Most states have passed a Model Act that requires annuitants to obtain a court order prior to reassigning their payments. A federal law levies stiff tax penalties on any advance obtained without a court order. (Unless you are the "owner" of the annuity)

You will receive a discounted value of your future payments.There are many variables involved.

The rating of the insurance company making the payments, the size of your transaction and how far into the future the payments extend all affect the amount you will receive. Often it is less than you would expect.

You do not have to sell all your payments.You can structure your purchase in multiple ways. For example, you can sell all remaining payments, a partial number of payments or a percentage of your payments. It is recommended to not sell beyond 14 years of payments.

The freedom to accelerate the payout of your lawsuit annuity is yours, exercise it carefully.

Jason RiglerStructured Settlement Counselor ppicash.com

Wednesday, March 22, 2006 

The Target Capital Structure

Firms can choose whatever mix of debt and equity they desire to finance their assets, subject to the willingness of investors to provide such funds. And, as we shall see, there exist many different mixes of debt and equity, or capital structures - in some firms, such as Chrysler Corporation, debt accounts for more than 70 percent of the financing, while other firms, such as Microsoft, have little or no debt.

In the next few sections, we discuss factors that affect a firm's capital structure, and we conclude a firm should attempt to determine what its optimal, or best, mix of financing should be. But, you will find that determining the exact optimal capital structure is not a science, so after analyzing a number of factors, a firm establishes a target capital structure it believes is optimal, which is then used as a guide for raising funds in the future. This target might change over time as conditions vary, but at any given moment the firm's management has a specific capital structure in mind, and individual financing decisions should be consistent with this target.

If the actual proportion of debt is below the target level, new funds will probably be raised by issuing debt, whereas if the proportion of debt is above the target, stock will probably be sold to bring the firm back in line with the target debt/assets ratio.

Capital structure policy involves a trade-off between risk and return. Using more debt raises the riskiness of the firm's earnings stream, but a higher propor- tion of debt generally leads to a higher expected rate of return; and, we know that the higher risk associated with greater debt tends to lower the stock's price. At the same time, however, the higher expected rate of return makes the stock more attractive to investors, which, in turn, ultimately increases the stock's price. Therefore, the optimal capital structure is the one that strikes a balance between risk and return to achieve our ultimate goal of maximizing the price of the stock.

Four primary factors influence capital structure decisions:

1. The first is the firm's business risk, or the riskiness that would be inherent in the firm's operations if it used no debt. The greater the firm's business risk, the lower the amount of debt that is optimal.

2. The second key factor is the firm's tax position. A major reason for using debt is that interest is tax deductible, which lowers the effective cost of debt. However, if much of a firm's income is already sheltered from taxes by accelerated depreciation or tax loss carryforwards, its tax rate will be low, and debt will not be as advantageous as it would be to a firm with a higher effective tax rate.

3. The third important consideration is financial flexibility, or the ability to raise capital on reasonable terms under adverse conditions. Corporate treasurers know that a steady supply of capital is necessary for stable operations, which, in turn, are vital for long-run success. They also know that when money is tight in the economy, or when a firm is experiencing operating difficulties, a strong balance sheet is needed to obtain funds from suppliers of capital. Thus, it might be advantageous to issue equity to strengthen the firm's capital base and financial stability.

4. The fourth debt-determining factor has to do with managerial attitude (conservatism or aggressiveness) with regard to borrowing. Some managers are more aggressive than others, hence some firms are more inclined to use debt in an effort to boost profits. This factor does not affect the optimal, or value- maximizing, capital structure, but it does influence the target capital structure a firm actually establishes.

These four points largely determine the target capital structure, but, as we shall see, operating conditions can cause the actual capital structure to vary from the target at any given time. For example, as discussed in the Managerial Perspective at the beginning of the chapter, the debt/assets ratio of Unisys clearly has been . much higher than its target, and the company has taken some significant correc- tive actions in recent years to improve its financial position.

Analia Jones is a Business Developer Manager of http://www.my-mortgege-loans.co.ukhttp://www.my-mortgage-loans.comhttp://www.2-structured-settlement.com

 

Back Injury Settlements

The major causes of back injuries are work related and accidents involving one or more vehicles.

Strenuous activities including bending, twisting, heavy lifting or standing/sitting in one position are also reasons for back injuries. Back injury settlement amounts are decided on the basis of fault, extent of injury, wages lost and predicted duration for recovery.

The back is a complicated system of muscles, ligaments, bones and nerves. When injured, damages can be severe and traumatic. Automobile accidents can cause severe injuries to the thorax, cervix and lumbar regions of the back. When damage is caused to the soft spinal tissue, it can be fatal. Recovery for survivors is slow and painful.

The damages awarded to victims depend on the extent of injuries and the age and physical health of victim prior to the accident. In the workplace, people often sustain injuries involving lifting and twisting. These injuries include slipped discs and torn ligaments. Employees of laundry and food delivery services, courier companies, postal delivery services, hospital nurses and lumber mills workers are at are particularly susceptible because their work involves a lot of lifting heavy loads and other kinds of strenuous activity.

An employee can be held responsible for a personal injury settlement if it is proven that the plaintiff works in stressful conditions arising from shortage of staff, heavy workload, extended periods of overtime, etc.

Minor back pain injuries heal quickly, within a few days of bed rest. But severe injuries, especially injuries to the spinal cord, cause disability, pain and mental trauma. Treatment is expensive, often needing extensive hospitalization, surgery, medication and therapy. Keeping this in mind, it is not unusual to see a personal injury settlement award for as much as $1 million for a first time back injury, if there was no pre-existing problem with the back.

Back injuries that seem minor can become critical over time, so it always best to consider taking the advice of a personal injury settlement attorney before settling.

Injury Settlements provides detailed information about injury settlements, burn injury settlements, hydrocodone injury settlements and more. Injury Settlements is affiliated with Debt Settlements.

Monday, March 20, 2006 

Viatical Life Settlement Contracts

Suffering from any terminal illness is traumatic enough and facing financial strains can only compound the matters. Viatical Settlements are a way to provide relief to the terminally ill person, in that he can sell his life insurance policy for a lump sum amount of cash. A private company or a broker can purchase the viator’s policy for a reduced amount than the actual face value of the policy. The seller gets the lump sum cash payment; the purchaser gets the death benefits on the demise of the seller.

Given the vulnerability of the situation certain provisions have been laid down by the law to ensure that no unscrupulous elements exploit the vulnerable people. Under New York State law, the viatical settlement companies or brokers have to be licensed. A contract is signed between the policy provider and purchaser. The contract is a written document entered between the two parties and it states the terms and conditions under which the life settlement provider will pay compensation to the seller of the policy. It also specifies the sale or transfer of the net death benefit or ownership to the purchaser of the policy.

The written document should state clearly the broker’s or the funding company’s name and contact address. It is also mandatory to state the alternative benefits that the seller may have to life settlements. These can be in the form of accelerated death benefits that the insurance company may have offered to the original policyholder.

The proceeds from a viatical settlement may or may not be free from tax benefits. Some states require viatical settlement companies to make these disclosures in the contract. Before signing the contract, the policyholder should contact a lawyer to check on the possible probate and estate considerations. The seller should keep in mind that a beneficiary of the viatical settlement will not get any life insurance benefits.

Viatical Settlements provides detailed information about viatical settlements, viatical life insurance settlements, viatical life settlement associations, and more. Viatical Settlements is affiliated with Sell Structured Settlement Payment.

 

A Structured Lawsuit Settlement Seemed Like a Good Idea at One Time

You are receiving payments spread out over months, years, even a lifetime. It's great when the money arrives but the payments are often too small or too spread out to really satisfy your needs. Careful research could yield more of your cash faster. There are some half dozen financial institutions with the knowledge and resources to effectively advance your future lawsuit payments.While the rewards are obvious, the risks are not so easily understood. Once you identify an annuity buyout funding source, consult your attorney for an explanation of the legal requirements.

Beware some of the following pitfalls when obtaining an advance on your future lawsuit payments.

It takes time.In most cases the industry-wide standard is several months. Some companies will tell you they can get your deal processed in weeks. Unfortunately, courts do not operate that quickly. Most people want a set time frame and need the money right away.

You have to go to court.Most states have passed a Model Act that requires annuitants to obtain a court order prior to reassigning their payments. A federal law levies stiff tax penalties on any advance obtained without a court order. (Unless you are the "owner" of the annuity)

You will receive a discounted value of your future payments.There are many variables involved.

The rating of the insurance company making the payments, the size of your transaction and how far into the future the payments extend all affect the amount you will receive. Often it is less than you would expect.

You do not have to sell all your payments.You can structure your purchase in multiple ways. For example, you can sell all remaining payments, a partial number of payments or a percentage of your payments. It is recommended to not sell beyond 14 years of payments.

The freedom to accelerate the payout of your lawsuit annuity is yours, exercise it carefully.

Jason RiglerStructured Settlement Counselor ppicash.com

Saturday, March 18, 2006 

Structured Settlements Brokers

Some companies offer their services in form of brokers or representatives who can deal with the structured settlement process. These brokers would be the people who are actually involved in the discussions. These brokers can provide some valuable advice to the attorneys handling the case if the attorney is not specialized in the field of structured settlements.

The broker needs to be provided with all the personal details of the attorney’s client as well as employment and medical history relating to that individual. Also, the financial and credit history has to be provided for the broker’s perusal. The broker usually works with the individual’s lawyer and helps in the negotiations with the other party to reach a proper settlement that would meet the client’s needs to the maximum.

A broker is able to advise the attorney on various offers available that could suit the client’s needs. The broker must be able to provide detailed description for each of these offers and should be able to answer all the queries relating to these offers. This is very important since a finalized structured settlement is not open for any changes or negotiations by either party. This can be problematic if the client gets into a wrong settlement that does not really meet the requisite needs. However, if the other party proves to be bothersome, this might provide some added security.

Usually, structured settlement brokers can also help the client in selling part or whole of their settlement if the need arises. However, no broker would be able to get a complete market value for the settlement, irrespective of the broker's negotiation skills.

It is a good practice to hire a registered broker since they are specialized in the field of structured settlements and can provide the best advice. Also, these brokers have a good background in finance and would be able to assist when the time comes for liquidating the settlement.

Structured Settlements provides detailed information about structured settlements, cash for structured settlements, sell structured insurance settlements and more. Structured Settlements is affiliated with Lawsuit Loans In Texas.

Friday, March 17, 2006 

The Two Sides of Structured Settlements

Creating and Factoring. Structured Settlement Planners and Brokers assist injury victims and lawsuit winners in the process of structuring a financial settlement to pay out over time in a manner best suited to meeting future financial needs. Structured Settlement Factors assist individuals receiving payments over time from a structured settlement in the process of restructuring the payout, usually obtaining an immediate lump sum at a discounted rate.

Wherever you are in the process, there is a wealth of information available on the internet to help you on your way. www.settlementplanners.org is a great resource “to assist injury victims, claimants and attorneys in resolving their legal financial claims, and to advocate the injury victims' right to choose settlement planning advisors and financial and guarantee providers."

Their efforts reach all the way to Washington DC, standing in the political and legal arena for the rights of claimants to have the best possible access to financial compensation. The NSSTA is also on the creation side of structured settlements advancing “the use of structured settlements as a means of using periodic payments to resolve personal injury claims, workers compensation, and other types of claims.”

The Factoring side is represented by a handful of funding companies and an army of factoring brokers. While there is a larger organization, referred to as NASP, considered to be the watchdog of the industry, there is very limited information on the organization itself. Structured Settlement factors provide “cash now” for future payments, in essence, restructuring or in some cases, dismantling, the previously approved payout in exchange for a lump sum of cash sooner.

The services provided can be timely in the case of dire financial need, but the steep discount is a major drawback for those considering their options. Go to www.ProsperityPartners.com for more information.

Two very different industries, both offering a service to the same group of people, from opposite sides of the product. One group creates structured settlements in the best interests of claimants, the other group factors the current payout to meet immediate financial needs.

Whichever service you need, there is plenty of information on the internet to help you along the way.

Jason Rigler "Settlement Advocate" and consultant for Prosperity Partners Customer Service Department.

Wednesday, March 15, 2006 

Financial Security through Structured Settlements

Structured settlements have become a natural part of personal injury and worker’s compensation claims in the United States, according to the National Structured Settlements Trade Association (NSSTA). In 2001, life insurance members of NSSTA wrote more than $6.05 billion of issued annuities as settlement for physical injury claims. This represents a 19 percent increase over 2000.

A structured settlement is the dispersement of money for a legal claim where all or part of the arrangement calls for future periodic payments. The money is paid in regular installments—annually, semi-annually or quarterly—either for a fixed period or for the lifetime of the claimant.

Depending on the needs of the individual involved, the structure may also include some immediate payment to cover special damages. The payment is usually made through the purchase of an annuity from a Life Insurance Company.

A structured settlement structure can provide long-term financial security to injury victims and their families through a stream of tax-free payments tailored to their needs. Historically, they were first utilized in Canada and the United States during the 1970s as an alternative to lump-sum payments for injured parties. A structured settlement can also be used in situations involving lottery winnings and other substantial funds.

How a Structured Settlement Works When a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner may propose paying the settlement in installments over time rather than in a single lump sum.

A structured settlement is actually a tradeoff. The individuals who were injured and/or their parents or guardians work with their lawyer and an outside broker to determine future medical and living needs. This includes all upcoming operations, therapy, medical devices and other health care needs. Then, an annuity is purchased and held by an independent third party that makes payments to the person who has been injured. Unlike stock dividends or bank interest, these structured settlement payments are completely tax-free. What’s more, the individual’s annuity grows tax-free.

Pros and Cons

As with anything, there’s a positive and negative side to structure settlements. One significant advantage is tax avoidance. When appropriately set up, a structured settlement may significantly reduce the plaintiff's tax obligations (as a result of the settlement). Another benefit is that a structured settlement can help ensure a plaintiff has the funds to pay for future care or needs. In other words, a structured settlement can help protect a plaintiff from himself.

Let’s face it: Some people have a hard time managing money, or saying no to friends and family wanting to "share the wealth.” Receiving money in installment can make it last longer.

A downside to structure settlements is the built-in structure (no pun intended). Some people may feel restricted by periodic payments. For example, they may want to buy a new home or other expensive item, yet lack the funds to do so. They can't borrow against future payments under their settlement, so they’re stuck until their next installment payment arrives. And from an investment perspective, a structured settlement may not make the most sense for everyone.

Many standard investments can provide a greater long-term return than the annuities used in structured settlements. So some people may be better off accepting a lump sum settlement and then investing it for themselves.

Here are some other important points to keep in mind about structured settlements: An injured person with long-term special needs may benefit from having periodic lump sums to purchase medical equipment. Minors may benefit from a structured settlement that provides for certain costs when they’re young—such as educational expenses—instead of during adulthood.

Special Considerations

- Injured parties should be wary of potential exploitation or hazards related to structured settlements. They should carefully consider:

- High 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 eat up too much of its principal.

- Inflated Value - Sometimes, the defense will overstate the value of a negotiated structured settlement. As a result, the plaintiff winds up with much less than was agreed upon. Plaintiffs should compare the fees and commissions charged for similar settlement packages by a variety of insurance companies to make sure that they’re getting full value.

- Conflict of Interest – There have been situations where the plaintiff's attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing he would receive a referral fee. In other cases, the plaintiff's lawyer has set up a structured settlement on behalf of a client without revealing the annuities are being purchased from his own insurance business. Plaintiffs should know what financial interest their lawyer may have in relation to any financial services being provided or recommended.

- Using Multiple Insurance Companies – It’s advisable to purchase annuities for a structured settlement from several different companies. This offers protection in the event a company that issued annuities for a settlement package goes into bankruptcy and defaults.

Benefits of Selling A Settlement

A structured settlement is specifically designed to meet the needs of the plaintiff at the time it’s created. But what happens if the installment arrangement no longer works for the individual? If you need cash for a large purchase or other expenses, consider selling your structured settlement. Many companies can purchase all or part of your remaining periodic settlement payments for one lump sum. This can boost your cash flow by providing funds you can use immediately to buy a home, pay college tuition, invest in a business or pay off debt.

If you’re considering cashing out your structured settlement, contact your attorney first.

Depending on the state you live in, you may have to go to court to get approval for the buyout.

About two thirds of states have laws that limit the sale of structured settlements, according to the NSSTA. Tax-free structured settlements are also subject to federal restrictions on their sale to a third party, and some insurance companies won’t assign or transfer annuities to third parties.

When selling your structure settlement, check with multiple companies to make sure that you get the highest payoff. Also, be sure the company buying your settlement is reputable and well-established. And keep in mind that if the deal sounds too good to be true, it probably is.

David Springer is a consultant for Sovereign Funding Group. Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing including structured settlements.

 

Viatical Settlement Providers

A viatical settlement involves the selling of a life insurance policy by a terminally ill person to unrelated investors who can be private funding companies or brokers. These companies or brokers buy the policy at a reduced rate based on the face value of the policy. They pay a lump sum amount of cash to the seller and on the person’ demise, they collect the death benefits.

Grim as this may sound, if the transactions take place in a fair manner, the viatical settlements can provide relief to the terminally ill person in terms of easing the financial strains, which may other wise compound the physical and emotional trauma the person is undergoing.

Viatical settlement providers are the investors who buy the settlement policies. The New York State law makes it mandatory for these providers to be licensed. So if you are looking for a potential buyer of the life insurance policy, you must make sure to check the license of the company or the broker.

It also makes more sense to sell the policy to a funding directly rather than through a broker, because the broker may or may not keep your best interests in mind while finalizing the deal. This is because the brokers usually get a percentage of the death benefits from the viatical purchaser companies. Also, before settling on any company, do contact a few others to get the best competitive rates.

In addition, you must keep in mind that you get the full cash payment at the time of sale. Don’t ever agree to partial payments and payment on installments. Your viatical settlement payment should exceed the cash value of your policy. Otherwise the better option would be to surrender your policy for its cash value.

You must check with your insurer if the policy contains provisions for accelerated death benefits. Before selling out, you can also consider options such as reverse mortgages. Most of all, do not give in to pressure tactics. Try to bargain for the best possible rates.

Viatical Settlements provides detailed information about viatical settlements, viatical life insurance settlements, viatical life settlement associations, and more. Viatical Settlements is affiliated with Sell Structured Settlement Payment.

Tuesday, March 14, 2006 

Structured Settlement: Deciding If This Is The Way To Go

Often, a structured settlement is one that offers the payment of funds owed in an agreed upon way. It works to allow individuals to receive payments of the money that is owed to them in such cases as a lottery winning or a personal injury lawsuit.

A structured settlement also allows for the company making payments to pay in payments rather than in a large, lump sum. To decide if a structured settlement is the right choice for you, consider these factors.

In many cases, a structured settlement is one that will allow you to receive monthly payments as opposed to one large lump sum. It is often the case that a lump sum will be worth less than the payments could be over time. It is often the most beneficial in dollar amounts.

Secondly, it has more tax advantages to it than that of a lump sum payment. It is often structured to include a lesser amount of money going to taxes.

It is a good choice in circumstances where the individual is on disability, is incapable of work or has become incompetent. In these cases, it allows for monthly payments to allow care throughout the life time.

In cases where a wrongful death has happened, it is necessary for the spouse and/or children to receive monthly payments to allow for compensation for wages.

It is also a benefit in such cases where the money will be needed to make payments. For example, in the payments needed for mortgages and car loans.

A structured settlement allows for individuals to receive payments instead of receiving a lump sum. While a lump sum may allow for more right away, a structured settlement allows for continuous help throughout the course of the repayment terms.

Determine which is the right situation for you is something that you and your attorney will need to discuss further. Ask him what a structured settlement can do for you.

Ken Austin is the webmaster at Structured Settlement Tips and Financial Resource Guide.

Saturday, March 11, 2006 

Sell Structured Insurance Settlements

It is not good practice to sell a structured settlement without a real need for the money. Structured settlement annuities are usually bought as investments and do not provide the necessary benefit when they are sold early.

Even though part of the settlement can be sold to raise money for a one time necessity, the entire settlement must be sold only in case of dire emergency when the money cannot be raised in any other manner. Since structured settlements ensure regular periodic payments, many people hesitate to sell the entire settlement at one stretch.

However, in the case of necessity, a structured settlement can prove to be a boon. If possible, only a part of the settlement should be sold unless a lump sum is required as an emergency. In the case that the settlement acts as a worker’s compensation settlement, the injured party might no longer require the periodic payments to cover the medical expenses. In such cases the rest of the settlement can be sold to raise a tidy sum for use or investment elsewhere.

Since a finalized structured settlement cannot be negotiated and changed, it is better to look into it before signing. Some contracts might not allow the party to sell off the structured settlement before the time is expired.

Also, some contracts might legally bind the party to go through a lot of legalities before selling the structured settlement. A structured settlement broker would be able to provide appropriate advice before entering into a binding contract and can also help with the negotiations before an agreement is reached by either parties.

Brokers might charge a fee in return for their services but their valuable advice is worth it.

They can help the clients understand the contract and hence assist them in avoiding a wrong kind of contract.

Structured Settlements provides detailed information about structured settlements, cash for structured settlements, sell structured insurance settlements and more. Structured Settlements is affiliated with Lawsuit Loans In Texas.

Friday, March 10, 2006 

Cash For Structured Settlements - The Smart Way

For most people when they buy a house it is considered their life’s largest deal. In some cases of structured settlements the compensation and financial considerations for a persons life duration and the total present value of the settlement can reach few millions of dollars. Therefore it is strongly advised to use professional services like annuity consultant and a lawyer specialized in this field in order for you to avoid painful costly mistakes. Here are some tips:

- Think twice before you make a decision. Do you really need that money or you want to feel rich, secure, powerful etc’

- Take only part of the money not all of it, in case of an injury claim the Court needs to approve your request, the judge will want to know what do you need the money for.

- Some Funds will try to convince you that due to Inflation and rising cost of living your annuity payments have less and less buying power over time. Remember that if the Structured settlement was done properly it has a cost-of-living adjustment (COLA) feature build into it in order to offset the effects of inflation over time. So the funds claim on this issue is only partially true as the cost of living index is an artificial and biased measure of the actual inflation over time. Still even 70% protection is reasonable.

- When you get a large sum of money take into account that each bank is F.D.I.C. insured for up to $ 100,000 only! That means that if your sum of money is bigger than that you will need to open additional Account/s in a different bank/s in order to be covered. In addition take into account that as long as you deposit your money in C.D’s (e.g. Certificate of Deposit) you are covered, but if you invest your money In fixed income, stocks, bonds, and mutual funds. These securities are NOT F.D.I.C. insured!

- In case you transform Lottery winnings payments or a large sum of money from structured settlement, keep it as discrete as you can, It is not recommended to go and buy a Rolls-Roys or any other flashy car, that will bring the criminals and the charity people to chase you. That might even cause your children start to ask for money. Try to keep it a secret.

- It is a good Idea to get more than one or two offers from various private funds before making a decision, remember you are a very lucrative customer, the funds should fight over you! Don’t be timid to negotiate and manipulate them to maximize your money. One of the best and most reputable Funds I know with excellent fast customer service is Sovreign-Funding, You can find there useful information, Fill out their short form and you will get an offer from them with no obligation on your part.

- One last piece of advice, there is a new ebook you can download immediately, It is called “Annuities: The shocking secrets revealed” written by Tony Bahu CEO of AnnuityMD.com, It is a $97 book but it is a very small investment considering how much money it can save you. You can see it here:

The shocking secrets

MBA - International Trade & Finance - Heriot-Watt University. Bsc. Computers and Information Systems - Long Island University - C.W Post Campus. Married with two Children.
http://annuity-structured-settlements.blogspot.com/

Thursday, March 09, 2006 

Financial Security through Structured Settlements

Structured settlements have become a natural part of personal injury and worker’s compensation claims in the United States, according to the National Structured Settlements Trade Association (NSSTA). In 2001, life insurance members of NSSTA wrote more than $6.05 billion of issued annuities as settlement for physical injury claims. This represents a 19 percent increase over 2000.

A structured settlement is the dispersement of money for a legal claim where all or part of the arrangement calls for future periodic payments. The money is paid in regular installments—annually, semi-annually or quarterly—either for a fixed period or for the lifetime of the claimant.

Depending on the needs of the individual involved, the structure may also include some immediate payment to cover special damages. The payment is usually made through the purchase of an annuity from a Life Insurance Company.

A structured settlement structure can provide long-term financial security to injury victims and their families through a stream of tax-free payments tailored to their needs. Historically, they were first utilized in Canada and the United States during the 1970s as an alternative to lump-sum payments for injured parties. A structured settlement can also be used in situations involving lottery winnings and other substantial funds.

How a Structured Settlement Works When a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner may propose paying the settlement in installments over time rather than in a single lump sum.

A structured settlement is actually a tradeoff. The individuals who were injured and/or their parents or guardians work with their lawyer and an outside broker to determine future medical and living needs. This includes all upcoming operations, therapy, medical devices and other health care needs. Then, an annuity is purchased and held by an independent third party that makes payments to the person who has been injured. Unlike stock dividends or bank interest, these structured settlement payments are completely tax-free. What’s more, the individual’s annuity grows tax-free.

Pros and Cons

As with anything, there’s a positive and negative side to structure settlements. One significant advantage is tax avoidance. When appropriately set up, a structured settlement may significantly reduce the plaintiff's tax obligations (as a result of the settlement). Another benefit is that a structured settlement can help ensure a plaintiff has the funds to pay for future care or needs. In other words, a structured settlement can help protect a plaintiff from himself.

Let’s face it: Some people have a hard time managing money, or saying no to friends and family wanting to "share the wealth.” Receiving money in installment can make it last longer.

A downside to structure settlements is the built-in structure (no pun intended). Some people may feel restricted by periodic payments. For example, they may want to buy a new home or other expensive item, yet lack the funds to do so. They can't borrow against future payments under their settlement, so they’re stuck until their next installment payment arrives. And from an investment perspective, a structured settlement may not make the most sense for everyone.

Many standard investments can provide a greater long-term return than the annuities used in structured settlements. So some people may be better off accepting a lump sum settlement and then investing it for themselves.

Here are some other important points to keep in mind about structured settlements: An injured person with long-term special needs may benefit from having periodic lump sums to purchase medical equipment. Minors may benefit from a structured settlement that provides for certain costs when they’re young—such as educational expenses—instead of during adulthood.

Special Considerations

- Injured parties should be wary of potential exploitation or hazards related to structured settlements. They should carefully consider:

- High 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 eat up too much of its principal.

- Inflated Value - Sometimes, the defense will overstate the value of a negotiated structured settlement. As a result, the plaintiff winds up with much less than was agreed upon. Plaintiffs should compare the fees and commissions charged for similar settlement packages by a variety of insurance companies to make sure that they’re getting full value.

- Conflict of Interest – There have been situations where the plaintiff's attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing he would receive a referral fee. In other cases, the plaintiff's lawyer has set up a structured settlement on behalf of a client without revealing the annuities are being purchased from his own insurance business. Plaintiffs should know what financial interest their lawyer may have in relation to any financial services being provided or recommended.

- Using Multiple Insurance Companies – It’s advisable to purchase annuities for a structured settlement from several different companies. This offers protection in the event a company that issued annuities for a settlement package goes into bankruptcy and defaults.

Benefits of Selling A Settlement

A structured settlement is specifically designed to meet the needs of the plaintiff at the time it’s created. But what happens if the installment arrangement no longer works for the individual? If you need cash for a large purchase or other expenses, consider selling your structured settlement. Many companies can purchase all or part of your remaining periodic settlement payments for one lump sum. This can boost your cash flow by providing funds you can use immediately to buy a home, pay college tuition, invest in a business or pay off debt.

If you’re considering cashing out your structured settlement, contact your attorney first.

Depending on the state you live in, you may have to go to court to get approval for the buyout.

About two thirds of states have laws that limit the sale of structured settlements, according to the NSSTA. Tax-free structured settlements are also subject to federal restrictions on their sale to a third party, and some insurance companies won’t assign or transfer annuities to third parties.
When selling your structure settlement, check with multiple companies to make sure that you get the highest payoff. Also, be sure the company buying your settlement is reputable and well-established. And keep in mind that if the deal sounds too good to be true, it probably is.

David Springer is a consultant for Sovereign Funding Group. Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing including structured settlements.

Tuesday, March 07, 2006 

Life Settlement Article: Don't be Fooled by Surrender Value Option - Consider Senior Life Settlement

When you love someone, you want to see them happy even if you are not around. Now there are a few reasons to consider buying life insurance but by far the most common motive for doing so is to see that the ones you love are taken care of financially once we pass. At the time of our passing, death benefits are paid to our beneficiaries. But, it is a also very true that many of purchase life insurance early on in our lives and usually after bringing children into the world. As we grow older and we create a more solid financial footing, the actual need for a life insurance settlement is reduced. After all, the kids are all grown up and we have grown wiser and have generally built a retirement portfolio that should leave our loved ones on firm footing after we pass.

Since the need for life insurance settlements decreases as we age, the temptation to cancel that policy grows. Now should we cancel, the company will pay you what is known as a “surrender value” in return for all those years we paid into the life insurance policy but never collected. But this surrender value is nowhere near the actual value of your policy after years, oftentimes decades, of paying into policy. This is why you should not consider the surrender value as your best option when canceling your life insurance policy. In truth,life settlement(also known as a senior settlement) is many times the best option for anyone cashing in their life insurance policy.

Now you may be scratching your head and wonder just what exactly these life settlements are and how they are the better way to go. Senior settlements are the result of you selling your life insurance policy to another party which may be a bank or some kind of financial institution that deals in such transactions. In return for the death benefits paid out in a life insurance settlement, a company entering into a life settlement will pay you a percentage of those total benefits when you sell your policy to them. Although they may only pay you perhaps 50% of the total amount of those death benefits, this is still a larger figure than what you would receive from the life insurance company in any surrender value transaction. How and why do they do these life settlement companies do this?

Although the surrender value of a life insurance policy usually includes all the money you paid in premiums over the years, the fact remains that it does not usually include the interest made off of those premiums over the years. Businesses that offer you the senior life settlement option are trying to make money from those death benefits but they know that they have to offer you more than the surrender value that the life insurance company is offering or else you have no incentive to do business with them. This is why they are willing to give you more of the real value of your life insurance policy than the insurance company. And, since there are numerous companies dealing in life settlements to choose from, you can shop around and find the best deal whereas the life insurance company will only give you the surrender value of the policy and no more.

So basically, an owner of a life insurance policy has a valuable commodity. The life insurance company will not make as much money if it has to pay the death benefits on a life insurance settlement so they are happy to see you cancel the policy and refund your premiums because they have made money off of your money for years. A life settlement company wants you policy because they see the potential for profit but are more motivated to give you top dollar for your policy than the insurance company. Clearly, the chances are pretty good that seeking a senior settlement is often going to be more profitable for you than any surrender value offered by the life insurance company. So, if you are considering terminating your life insurance, realize the value of that policy and check into senior settlements because you might be very amazed at the just how valuable your policy truly is and make more money in the process.

Learn more about Life Settlements at Insurance Settlement Review

Jim Prescott, CPA business consultant for over 30 years specializing in small and medium size businesses that range from closely held to publicly traded companies. Jim is a Partner in CPA firm Prescott Chatellier Fontaine & Wilkinson, LLP that offers audit, accounting, investment advice, tax planning services, estate plans, pension plans consulting and insurance advice. In addition to the CPA firm's web site Prescott Chatellier Fontaine & Wilkinson, LLP you can find more information and Articles on Life Settlements at Insurance Settlement Review.com

 

Senior Viatical Settlements

Senior settlements are different than viatical settlements. Viatical settlements involve the selling of the life insurance policy by a person who is terminally ill and whose life expectancy has been predicted to about two years or so. The policyholder may need cash either to ease his financial strains, or to leave something for his children or grandchildren, or to pay for his funeral dues, as the case may be. For this, he can sell his life insurance policy for a lump sum amount to an investor, who would then get the death benefits of the policyholder on his demise. There is a high level of risk involved in this transaction because life expectancy can never be predicted accurately. If the person outlives the predicted period, the investor stands to lose, as he will get lower returns. He may also lose his principal amount if the seller lives long enough and so the investor would have to pay the additional premiums also.

Life settlements or senior settlements are different than viatical settlements. Senior settlements are meant for senior citizens (sixty five years of age or more) and they are not actually suffering from any terminal diseases such as cancer or AIDS. Senior settlements provide the senior citizens a way to obtain a lump sum cash amount for life insurance policies that have outlived their usefulness. They are meant for people who have health problems and have policies worth over $100,000.00.

As a senior citizen, you can sell your policy to a bank or to any financial institution. These institutions will then provide you a cash settlement that will exceed the surrender value of the policy. The senior settlements are also called life settlements and can prove to be a favorable option of cashing your settlement rather than letting the policy lapse.

Viatical Settlements provides detailed information about viatical settlements, viatical life insurance settlements, viatical life settlement associations, and more. Viatical Settlements is affiliated with Sell Structured Settlement Payment.

Friday, March 03, 2006 

Getting Quick Cash for Your Structured Settlement

Just because you received a structured settlement for your lawsuit, it doesn't mean you have to wait for years to get the money. There are many settlement purchasing companies that will give you instant cash for your structured settlement. These companies can pay cash for the entire structured settlement or purchase your remaining periodic settlement payments. You can spend this lump-sum payment on anything-a house, college tuition, business investments or debts.

What Is a Structured Settlement?

A structured settlement, which typically results from a personal injury lawsuit, is an agreement where you consent to accept payments over time in exchange for the release of liability for your claim. A structured settlement can provide payments in almost any manner you choose. For example, the settlement may be paid in annual installments over a number of years or in periodic payouts every few years.

These payments are generally awarded through the purchase of one or more annuities from a life insurance company. Structured settlements can also be used with lottery winnings, contest prize money and other situations with substantial cash awards.

Structured Settlements Not Always the Best Fit

In theory, structured settlements are designed to provide long-term financial security to injury victims through tax-free payments. And for most people, the agreed-upon structured payment plan initially makes sense. However, a financial emergency, a business opportunity, an unforeseen medical expense, or a house purchase can put a strain on the injured party's finances.

And the structured nature of the settlement may become too restrictive to cover major financial purchases. Also, a structured settlement may not be the best option for investing. There are many other investment vehicles that can generate greater long-term return than the annuities used in structured settlements. Therefore, some people may be better off getting cash for their structured settlement and then building their own investment portfolio.

How Getting Cash for a Structured Settlement Works

If you receive an award from your injury case, an attorney or financial advisor will likely recommend setting up periodic installment payments instead of giving you a lump sum of cash up front for your structured settlement. Then, an independent third party will purchase an annuity that will provide you with tax-free periodic payments.

Companies that offer cash for structured settlements have a variety of programs that can allow you to access any portion of your annuity. For example, you may want to sell as little as four year's worth of payments or receive a lump-sum payment while still enjoying some portion of your monthly payment. Or you can sell your settlement for a large payment that is five or six years in the future. You can also customize an arrangement to get cash for a structured settlement based on your unique needs.

Here's an example of how obtaining cash for a structured settlement works: Let's say you were in an accident five years ago. The accident caused you to be hospitalized for several months and undergo nearly a year's worth of physical therapy. So you hired an attorney and sued the responsible individual-or, rather, the person's insurance company. Ultimately, your attorney advises you that you'll be awarded a substantial sum of money.

After several months or years of negotiation, you receive a sizable settlement. However, the cash you get upfront is only enough to cover the medical expenses. The rest of your compensation is scheduled to be paid out in regular installments through an annuity over the next 15 to 30 years. Rather than being restricted to monthly or annual payments, you contact a settlement purchaser to secure immediate cash for your structured settlement. You're then able to use the cash to enhance your current cash flow-rather than waiting on periodic future payments.

Legal Issues of Receiving Cash for a Structured Settlement

If you're contemplating getting cash for your structured settlement, it's important to contact a financial advisor. Most states have regulations that limit the sale of structured settlements, so you'll need court approval to receive cash for your structured settlement. Federal restrictions also may affect the sale of structured settlements to a third-party individual. And some insurance companies won't transfer annuities to third parties.

Also, before you attempt to obtain cash for a structured settlement, be sure to do your homework. Check out multiple companies to see which one can offer you the most cash for your structured settlement. You also want to examine their integrity, reputation and track record.

This will help ensure you have the most positive experience obtaining cash for your structured settlement.

Receiving cash for a structured settlement is an ideal option if you need a lump sum of money to meet your immediate needs.

David Springer is a consultant for Sovereign Funding Group. Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing, including providing cash for your structured settlement.

 

Structured Settlements Annuities

In simple words, a structured settlement annuity can be considered as a lump sum that would be paid in exchange for a periodic payment. When an individual requires a lump sum as a compensation for an accident or injury caused, annuities allow the sum to be put in as an investment instead, so that the same can be used in case of necessity. Structured settlement annuities can be offered in a wide selection and can be bought as required by the customer.

Annuities involving periodic monthly payments would be a good option when the monetary losses tend to pile up while waiting for the compensation to be offered. This is indeed very useful in case of workers compensation benefits since they would be able to cover the medical expenses for the injuries caused by the defendant. In some cases such compensation would also cover the day-to-day expenses in the household of the worker who might be receiving the treatment for the injuries caused while on the job.

Most people would prefer monthly payments to lump sum settlements as lump sum settlement might sometimes result in the person not being able to cover the cost of living effectively. Also, since there is an option of receiving the same amount periodically, they are chosen by most people compared to receiving a lump sum settlement.

An individual opting for a structured settlement annuity must shop around before committing to a company. This will enable the individual to get to know various options and offers being provided by a few companies and might help provide some valuable information allowing the person to make some wise decisions. Also, companies who employ experts specialized in structured settlement annuities might be able to provide an insight on all that involved in the process of obtaining an annuity.

Structured Settlements provides detailed information about structured settlements, cash for structured settlements, sell structured insurance settlements and more. Structured Settlements is affiliated with Lawsuit Loans In Texas.

Thursday, March 02, 2006 

Buyers of Structured Settlements

Structured settlements can be bought as an investment or provided as a compensatory payment to an injured party. Hence, these settlements can be used when receiving periodic payments or can sold either by parts or as a full settlement to raise a lump sum.

Structured settlements are usually sold in case of financial emergencies like medical or legal troubles. So the individual interested in buying the structured settlement must consider these even before going in for the settlement. The settlement being offered in the case of a personal injury must be able to cover the cost of the medical expenses as well as the daily requirements of the injured person’s family. It must not be that after receiving the settlement the injured party will have to sell the whole or part of the settlement to take care of such needs.

Attorneys and structured settlement brokers would be the best people to consult before buying a structured settlement. Since the brokers are specialized in this field, they would definitely be very valuable even though the attorney might not be specialized. Different offers available on the market need to be considered first. The brokers can provide details regarding these offers.

They must also be in a position to advice on various deals currently available in the market and the best-suited deal for any given circumstance. Brokers also help in selling a structured settlement so they should be able to negotiate with the other party for maximum benefits in the settlement.

People who are looking for periodic payments must look for the most beneficial deal if purchasing the settlement as an investment. This can cover the requisite expenses for a long time if the best kind of structures settlement annuity is bought with the help of a broker.

Structured settlements are the best option for minors till they reach a consenting age and are able to manage huge sums of money. So, such people can invest in structured settlement annuities.

Structured Settlements provides detailed information about structured settlements, cash for structured settlements, sell structured insurance settlements and more. Structured Settlements is affiliated with Lawsuit Loans In Texas.

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  • I'm The Structured Guy
  • From Mandeville, Manchester, Jamaica
  • A writer and web designer who has a profound interest in numerous topics and likes to share them with others
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