News and Tips on structured settlement transfers.

Annuities

4
Jan 11

Three Killer Reasons to Buy Structured Settlements

Frustrated with the low interest rates available on conventional investments? Looking for a different way to make money? Interested in a better way to maximize returns at the lowest possible risk?

If so, consider buying structured settlements.

A structured settlement occurs when a plaintiff in a personal injury lawsuit (usually) is awarded a large sum of money for their injuries. Because the defendant usually can’t pony up that kind of cash in a hurry, he buys an annuity from an insurance company. This allows the plaintiff to get a certain number of payments of a fixed amount over a period of time.

But, sometimes, the annuitant needs a lump sum of cash up front, usually for medical expenses or some other financial emergency. When this happens, s/he may sell some or all of the payments to which she has been given the annuity. This is called a structured settlement factoring transaction, and here’s where you come in. Why buy such a thing?

Return on Investment. Structured settlement annuitants who are looking to sell need cash fast, and so are willing to accept a much smaller lump sum than the combined amount of all their payments. The discount rate – which you use to determine what you will pay the seller in cash – can get up to the double digits. This sets you up for an enormous rate of return over time, provided you have the ability to wait for the payments.

Steady Payments. Since the annuity payments are coming from an insurance company, the risk that you won’t get the payments you have bought is pretty low. As long as the insurer stays in business, you’re set.

Recessionary Economy. In the current economy, people are facing all sorts of financial difficulties, and these are what motivate sellers of structured settlements. Loss of a job, spouse’s loss of job, impending foreclosure, a need to go back to school, or medical expenses for the annuitant or a family member, are all reasons that an annuitant might be looking to sell his structured settlement at a deep discount.

What Buyers Should Know. This isn’t a risk-free investment for you, either. You’ll need cash to make the payment. Since this is a highly regulated transaction – nearly every state requires prospective sellers to get financial advice, and to wait out a “cooling off” period – you’ll need legal help, and there’s always the risk the seller could change his mind, or that the court might balk, before the deal is finalized. But even one successful deal might make it all worth the trouble.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.

2
Jan 11

Selling Your Structured Settlement – The Process

The details of the various steps of a structured settlement factoring transaction can vary a little by state, but generally the process looks like this.

First, shop around. Decide how many payments of your settlement you want to sell and get offers. Always shop your annuities to several companies. A site like QMAP makes this process very easy. It’s important not to disclose details of competing offers to the different companies you’re comparing. Also, check the reputability of the companies you’re considering. The Better Business Bureau is a great resource; if you see lots of complaints against a prospective company, reconsider.

Once you’ve signaled your acceptance of an offer, you will have to prove that the payments you’re selling are legitimate by providing a copy of your annuity policy or other supporting documents. The seller will then send you documents that spell out the terms of their purchase for you to sign. At this point, if you haven’t already done so, it is strongly recommended that you seek legal and financial advice regarding this transaction; some states even require it. Even after you accept the offer and sign all the documents, your state will likely require you to wait out a “cooling off” period during which you can change your mind.

At this point, the transaction will have to be approved by a court. Depending on your state, you may have to appear before a judge. The judge will look at the terms of the deal, especially the discount rate used to reduce the future payments you’re selling to the lump sum you will receive. Also be prepared to substantiate the reason for selling your structured settlement, such as medical or educational expenses, legal expenses, or repayment of debt.

The court-approved transaction will be forwarded to the insurance company to document the sale of your settlement. The buyer will then advance your funds to you.

The entire process will take somewhere around 45 to 60 days, depending on the state where you live. When checking the reputability of prospective buyers, you may find complaints that the buyer took longer to process the transaction than promised, and beware that some unscrupulous companies will drag their feet. Also, at each step of the process, re-check the terms of the agreement to ensure that the seller has not changed the amount of the payment or added in any fees – this is another common complaint against buyers.

Remember that selling your settlement is a very serious decision and shouldn’t be rushed. Give serious consideration to whether this is your best option.

31
Dec 10

Selling Your Structured Settlement Online Now

You’ve got some kind of a structured settlement – maybe from a lawsuit, maybe from winning the lottery, maybe a note secured by a mortgage or a business.

But it’s just sitting there. Your next payment could be months away. You need cash now. What can you do?

Thanks to sites like QMAP, you have access to a fast, easy online marketplace where you can shop your note or settlement to willing buyers to come up with the best deal for you. So – what’s next?

Put out the details of your settlement arrangement, and what you want to sell. You can sell all of the future payments if you want, or sell only a few of them. It really depends on how much cash you need. Using a site like QMAP, you can list the details and get offers from interested buyers.

Shop Around. Like the song says, don’t be sold on the first offer. Every buyer of structured settlements is different. There are some firms who do a high volume of business and have well-known names in the business. Others might be small or start-up businesses looking for a return on your structured settlement. Some firms may start out with a low offer, only to come back with a higher one when you say no. Remember that when you sell a structured settlement, you will receive less in a lump sum than you would have received altogether over time. This is how companies make money – and how you get the cash you need right now.

Fees. Buyers of structured settlements are in the business of making money on the difference between your total payments and the cash they pay you now. But the buyers incur costs in doing so; they have overhead (office staff, communications expenses), legal fees, court fees, and the interest cost of getting access to the cash they will use to buy your note. As a result, the deal you’re offered may include varying amounts of fees. Each offer should be up front about the fees that will come out of your lump-sum settlement.

What’s the Money For? Annuities, particularly those entered into as part of a personal-injury settlement, are intended to support the annuitant for a period of time. The buyer of your settlement is looking to turn a profit, however, and is not concerned with why you want the money or how you plan to spend it, or how the loss of this annuity will affect your personal finances. However, the court may have to review and approve the sale of your settlement, and will want a compelling reason for the sale of your settlement. Don’t be vague. If you want to sell, you should have a good reason to do so, such as a compelling financial emergency, college tuition, or a solid business or investment opportunity. Be prepared to substantiate your reasoning.

30
Dec 10

Why Companies Purchase Structured Settlements

If you’ve got a structured settlement as the result of a lawsuit, or winning the lottery, you may be visiting a site like QMAP to consider the possibility of selling it for up-front quick cash. But what motivates the companies that buy the settlements?

Investment Return. The most compelling reason for a company or investor to get into the structured settlement purchasing business is the potential for huge returns on their investment. Consider that these companies buy all, or part, of the stream of payments you have been guaranteed for just pennies on the dollar. The goal for the purchaser, of course, is to get that lump-sum payment as low as the buyer will accept. The result can be returns substantially greater than any investment on the market.

Security. Once the structured settlement sale has been agreed to and approved, the buyer is virtually assured to get the stream of payments he has purchased. Most structured settlement annuities that result from lawsuits have been set up or purchased through insurance companies, so as long as the insurer is creditworthy and likely to stay in business, there is virtually no risk to the purchaser that he won’t get his cash flow later. Installment payments for lotteries, paid by the government, are even more secure.

Fees. In addition to the return on investment that the purchaser will receive, they can also cover their upfront costs by charging a fee as part of the structured settlement sales transaction.

Getting into the Business. Of course, the purchaser of the structured settlement has a pretty full plate. To get into the business of purchasing structured settlements, the company must have quick access to cash. If the settlement purchaser does not have the cash on hand, he must somehow secure it elsewhere – this means a cash advance on which he will have to pay interest. He’ll likely also incur legal fees getting help with the purchase contract, navigating the court system, etc. There will be overhead, too – office staff, communication costs, and so on. All of this is a substantial up-front investment for a new company in the structured settlement business.

The sale of a structured settlement will have to be approved by the court. Because the court and the seller will want to check the structured settlement buyer’s reputation, it may be difficult for a start-up to compete with bigger, established names. Also, if there has already been substantial work put into finding the seller, figuring up an offering price, and drafting the sales contract, only to have the court refuse to approve the sale, those costs are sunk. Still, even one successful purchase of a structured settlement can cover of that and make an immediate profit.

24
Dec 10

The Downside of Annuities (part 2)

This is the second post in a series discussing the pitfalls of annuities, specifically variable annuities. Regulators and the media have given increased attention to these products in recent years, as more cases have surfaced showing they have been sold to people who were unaware of the terms and risks involved.

Risk. A fixed annuity pays a fixed, and stated, rate of return throughout the annuity term, and so is likely invested in very safe, low-return investments. A variable annuity, by contrast, is usually invested in mutual funds or other products that have a higher return but are definitely riskier. While there is certainly a place for higher-return investments as part of an overall financial planning strategy, this could be disastrous if a substantial portion of your retirement savings – money you can’t afford to lose – is parked there. Take a hard look at the underlying investments for any annuity. A sales rep will emphasize attractive returns, but don’t stop there. Find out where, exactly, your money will be invested. Will it be invested in mutual funds based on untested industries or uncertain emerging markets? Will it be invested in high-risk, high-return “junk” bonds?

Death Benefit. Variable annuities often feature a death benefit that guarantees your heirs will receive the full value of the annuity in the event of your death, even if the annuity has lost value. This may sound like a good deal, but it isn’t free. Usually, there is a charge, perhaps one or two percent per year, for this benefit. That doesn’t sound like much, but calculate what this percentage means in real dollars, and then compare this amount to going rates for life insurance. You might be able to buy a life insurance policy outright for the same amount or less, providing exactly the same benefit to your heirs.

Hefty Fees. Variable annuities have notoriously high fees. Why? Because everyone involved needs to make their money. The mutual funds underlying your investment have fees, and those fees have to be passed on to you. The insurance companies want to cover their costs – particularly the commissions they pay on the sale of variable annuities – and so they pass on fees to you, as well. Unless you’re earning above-average returns that cover all of these fees, you would almost assuredly be better off investing your money outright and managing it yourself.

Other than keeping a large sum of money that you could spend too quickly out of your hands, most of what a variable annuity offers could be done on your own. Consider any variable annuity with a skeptical eye.

23
Dec 10

The Downside of Annuities (Part 1)

While an annuity can be a useful part of a retirement plan, the term “Variable Annuity” has become a dirty word in regulatory circles in recent years. There have been thousands of cases of people, particularly seniors, being talked into variable annuities that were completely inappropriate for them.

In 2009, a class action lawsuit against nationally-known insurance company Allianz alleged that some 340,000 people were sold risky variable annuities, and were misled by slick sales reps about the underlying terms and penalties of these annuities. They earn fat commissions on the sales of these products, so the incentive to sell – and the pressure they put on you to buy – is huge. Here are some things to watch out for if you’re being pitched this kind of product.

Surrender Penalty. The insurance companies who sell annuities don’t make any money if you’re able to pull the funds out whenever you want. So they tack on a “surrender penalty,” a percentage that the company deducts from your account if you close your account sooner than they would like. Read the fine print – you may have to wait three, five, seven years or more before you can take your money out without giving up a big percentage of it to do so. That means, if you’re unsatisfied with the annuity company, or if you have a financial emergency and need cash, you lose out big time. And depending on your age and life expectancy, what are the odds that you will outlive that surrender period?

In the Allianz case, the annuitants alleged they were promised an “upfront” bonus for purchasing the annuity that would offset the surrender penalty. The annuitants claimed, however, that Allianz was not on the hook for this bonus for fifteen years, and for some annuitants, the bonus never materialized.

Taxes. Annuity salesmen emphasize that these products grow tax-deferred, and that’s true. While your money is locked up in the annuity, you pay no taxes at all. Once you begin taking withdrawals, you pay taxes on the earnings portion of your annuity. But these earnings are taxed as income at your income tax rate. By contrast, were you to put your money in a mutual fund on your own, the earnings would be taxed each year as capital gains at just 15%. If you’re in a tax bracket higher than that, having your money in an annuity has actually cost you more in taxes.

The next post will address further red flags of variable annuities.

22
Dec 10

Annuities – The Basics

An annuity is, simply, a promise to make a series of regular payments over a period of time. The annuity contract spells out the terms of this promise.

There are various types of annuities, but this discussion centers on those used for retirement or income planning. An annuity can be a great way for someone to guarantee an income for himself and prevent himself from blowing his savings too early.

An immediate annuity is created when someone uses a lump sum of cash, such as accumulated retirement savings, to purchase an annuity. The annuity will consist of payments usually made over the life expectancy of the retiree. A deferred annuity occurs when someone makes periodic payments into an annuity; when all of the payments are made, the annuity begins making periodic payments to the annuitant.

Annuities can be fixed, that is, they pay a fixed interest rate over the life of the payments. This is a very safe and conservative option, but deprives the annuitant (that’s the person receiving the payments) the opportunity to reinvest the annuity funds into an investment with a higher rate of return.

A variable annuity does not provide that guaranteed rate of return, but also allows the annuitant more control over the investments underlying the annuity – and therefore a greater chance at earning more money. Generally the annuitant (and probably his investment advisor) will choose an allocation of investments designed to generate the desired return. The annuity may also call for reallocation at periodic intervals, where the annuitant can change the underlying makeup of his investment portfolio. One downside of this more active management of the annuity funds is the fees involved with buying, selling, or reallocation of the investments.

The structure of your annuity depends on the initial investment, interest rate, underlying investments, your life expectancy, and the beneficiary arrangements on your annuity. Obviously, the longer your life expectancy, the smaller the regular payments must be. If your annuity provides for distributions to your heirs in the event of your premature death, this changes your payments too.

Also important is the financial health of the company who issues your annuity, often an insurance or investment company. If this company becomes defunct, your annuity could be at risk, so you should research and be satisfied with the issuing company’s financial stability prior to buying in.

While an annuity can be an excellent retirement planning tool, there are plenty of investing and tax issues you should consider before deciding if one is right for you. significant risks and tax issues associated with them. Shop around, and talk to a competent financial and tax planning professional before you choose an annuity.

20
Aug 10

Getting the Best Price for your Annuity or Structured Settlement

Life often takes unexpected turns. Financial crises happen to most people and cash flow problems can snowball to a financial catastrophe. For example, if you’re behind on mortgage payments, it could mean losing your home. If you lose your home, you would still be required to pay rent at another residence.

If you have a structured settlement or other type of annuity, should you sell it? It depends on a number of factors, including other assets or sources of income, the risk you stand to lose if a financial crisis is not averted, and what you stand to gain if sold.

Fortunately, if you decide to sell your annuity, there is help available. There are some useful tips on selling your annuity.

Finding a marketplace to sell your annuity

As with any other commodity, you need to find a marketplace for your annuity. Unlike selling a car, you probably will not find many buyers through Ebay, your local newspaper or Craigslist. Most financial companies interested in purchasing it won’t be looking at those sources.

There are companies that advertise to purchase your annuity, and some may offer you a decent price. But in those cases, you are often given a take it or leave it offer. The more companies that know you are selling an annuity the better, and the more offers you receive, the higher price you will be offered.

QuoteMeAPrice.com provides a marketplace for your annuity or structured settlement. It brings ready, willing and able buyers together with those who need to sell, and are ready to offer cash for either a full settlement or partial settlement. QuotemeaPrice.com does the legwork of finding these buyers for you.

Knowing the worth of your annuity

If you decided to sell your car, you wouldn’t attempt to put a price on it without obtaining a blue book value. Though the selling price of the car may or may not be equal to the blue book value, you at least obtain an informed price as to the marketplace. Understanding what your annuity is potentially worth will allow you to make an informed decision on whether to sell, and if so, the offer you are willing to accept.

With an annuity, the price you receive is not simply a matter of adding up all remaining payments. This is because the remaining payments will be paid out over a number of years. Companies willing to purchase annuities will apply a discount factor against the price of the annuity, taking into consideration the interest they would be earning if their money was invested elsewhere.

There are annuity calculators available for getting an estimate of the present value of your annuity. If you need assistance in determining the value, consider contacting your attorney, accountant, or tax preparer. Or better yet, contact Quotemeaprice.com to get an idea of the present value of your annuity.

Require full disclosure of the sale terms from any buyer

Most states have enacted the Model State Structured Settlement Protection Act in one form or another. First and foremost, the Structured Settlement Protection Act requires full disclosure of all terms of the proposed sale, including the number of payments, the discount rate used by the company and any charges applied for breach of the agreement.

In some cases, independent legal or financial advice is required. Insist that any buyer comply with the Structured Settlement Protection Act

Selling your annuity or structured settlement may be able to protect other assets of yours and may be able to stop a financial crisis before it begins. Knowing your rights as a seller and obtaining the most bidders available through Quotemeaprice.com are invaluable tools to insure the best price in the marketplace is obtained.

7
Aug 10

A Marketplace is the Best Place to go for Liquidating Structured Settlements

Structured Settlements are meant to be residual payments paid out over a period of time. Some people count on receiving those payments on a guaranteed scheduled time frame. However, when the actions of life happen, as they often do, it can be an asset to cash out these payments into one lump sum. There are a number of ways to do this. One of the best ways is by utilizing a marketplace.

What is a marketplace

A marketplace is much like it sounds. It is a place that will market your request for cashing out, or liquidating, your structured settlement. Instead of receiving several payments, a person will receive final one lump sum. The marketplace enables people to list their request and have it viewed by multiple companies.

Let the bidding begin

A marketplace is like ebay on steroids. A request for cashing out a structured settlement is placed. The listing is then viewed by several structured settlement factoring companies and investors. The companies then enter into a feeding frenzy of bids for that settlement. The winning company’s bid is the one the person will end up with. The winning company will then complete the process by taking the transaction through the court system and providing the final lump sum payment to the tort victim.

What settlements can a marketplace list

There are certain payment streams that can be listed in the QuoteMeAPrice.com Marketplace. QuoteMeAPrice.com has buyers for structured settlements, annuities, lottery payments, and mortgage notes.

Benefits of marketplace

The marketplace offers a quick way to get cash for your structured settlement, note, lottery payments, or annuity. The recipient doesn’t need to be harassed by several companies, all the bidding is done in one place. This means less stress, the recipient saves money and headaches.

The marketplace is a great option for people seeking to cash out a structured settlement. They offer peace of mind by receiving the most cash for your future payments.

3
Aug 10

Sell Annuity Payments to Competing Buyers

Have you ever considered selling annuity payments? Are you currently searching for a buyer? The financial arena can be a tricky business and the last thing you would want is to lose valuable capital in a bad deal. Hasty or uneducated choices can be costly. When it comes to these matters it is important to find a reputable and easy to navigate mediator to assist you to make the best possible decision.

Quote Me a Price is proposing to be just the assistance to come to the rescue. The appeal of Quote Me a Price is varied. When you are in the process of Selling Annuity Payments you can visit Quote Me a Price’s website and seek out quotes from a number of institutions. You will not be forced to make a rushed decision but you can browse through the offers you receive and make an informed decision. Quote Me a Price will not only save you time but it may even save you a multitude of problems and costly disappointment.

The option of Selling Annuity Payments has not always been available. Previously you were stuck with the annuity structure you had or you had to fork out a sizeable amount to the insurance company. Now there are companies who make it their business to purchase annuities and other structured settlements. So it is possible to avoid being trapped in an annuity or liable for unreasonable sums of money to escape.

You may be interested in Selling Annuity Payments because you are no longer in need of the money or you prefer to have one large cash payout. Whatever you reasons, you will find the information you need at Quote Me a Price. They are aware of this emerging need and market so they aim to provide a useful and comprehensive service. It is beneficial to you as the seller, as well as the institutions that are offering to buy from you.

The whole process is quite simple and hassle-free. All you need to do is go online to Quote Me a Price and fill in the necessary information. You will receive a response in two working days so you can begin comparing quotes and start the process of selling annuity payments. The firms will make cash offers and you can avoid sending your information to companies from which you have already received a quote. From the comfort of your own home you can handle all your financial business with efficiency.

In addition to selling annuity payments, you can also sell a life insurance policy. You can get quotes for other structured settlements at Quote Me a Price so it is truly an all-inclusive service. When you are in the market to sell this kind of financial policy there is no better place to look for assistance. They guarantee quotes from fine funding firms who will take into account all the most crucial information. Pay Quote Me a Price a visit and watch as your worries disappear.

Let Companies Compete to Buy your Structured Settlement!

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