After suffering injuries or damages, you may be awarded a structured settlement to ease financial difficulties and help relieve any pain or inconvenience you might have endured. Although, you may discover that your structured settlement payments aren’t meeting your needs and may considering selling them. While you can sell your settlement in part or in whole, it isn’t a simple process. Some problems can arise, but if you know what to do, you can avoid them.
Appearing before the Judge
Many people don’t realize that in order to sell their payments, or “transfer” them, they must go back before a judge. Deciding whether or not the sale is actually in your best interest is the judge’s job, and they will consider many criteria when making this decision. The judge will look at your financial situation or circumstances and base their decision on that. And, he will deny your transfer if your immediate need isn’t proven to their satisfaction.
Examining your Offer
The company making your offer can also be a factor the judge looks at when determining your best interests. Your transfer will be denied if the judge decides the terms they are offering are not fair to you. What terms will the judge consider to be fair and in your best interest? In this case, the judge’s job is to make sure you aren’t ripped off, and that most of the funds awarded to you actually go to you and aren’t lost to the buying company. The amount varies from company to company (which is why it pays to comparison shop when looking for a buyer), but many times you can get up to 90% of the money you are owed.
Hire a Professional
You may not realize it, but having a competent lawyer on your side can be important if you are considering selling your structured payments. Competent counsel from a lawyer can give you an idea of whether your offer will be approved or denied by a judge. They can also stop a predatory company from taking advantage of your situation and ripping you off.
Comparing offers from competing companies is the best way to ensure you get the best deal, and an expert settlement broker can get you offers from many companies in a short amount of time, allowing you to choose the best company for your financial needs.
Many people receive structured settlement payments as part of an agreement from an insurance company as a result of an accident or medical malpractice. Usually, the cash payments are received for a specific period of time, on an installment plan. Typically the claimant will receive monthly payments instead of as a lump sum or flat rate.
Often considered a long-term contract, structured settlement payments are designed to offer financial security for the long haul. It provides a source of funds to pay medical bills, living expenses and/or medications. The logic behind issuing structured settlement payments is the assurance that it provides the receiver that they will have the money they need in the future. Often times, the insurance company will provide an annuity with a specific dollar amount paid up front that will produce monthly payments to the beneficiary.
There are numerous options for structured settlement payments other than just receiving a monthly check. The payment schedule can be set as a single annual amount provided to the beneficiary, or a more complex arrangement with special provisions or deferred payments.
The downside of agreeing to structured settlement payments is the limitations and restrictions placed on the beneficiary. Once the court order agreement has been accepted, the terms cannot be changed at a future date. Because of that, it is imperative that the claimant uses the skills of a competent attorney to negotiate terms that meet his or her needs.
Selling the Structured Settlement
Once the beneficiary begins receiving structured settlement payments, he or she can sell the annuity for a lump sum cash amount. The agreement to sell the structured settlement can be designed to only sell a portion of the annuity and allow the beneficiary to continue to receive reduced monthly payments. This option is usually preferable to individuals that require more income than what is provided by the structured settlement.
Those who are in structured settlements are going to be receiving installment payments over the course of a certain period. The length of time of the settlement can vary, as can the amount of the payments. Many factors contribute to this, and the actual value of that settlement can even vary over time due to things such as inflation. Those who are trying to get a better idea of how much their settlement is worth should use a settlement calculator to get started. This can give them a better idea of the value of the settlement, and it can help them to determine if selling the annuities is the right thing to do.
Finding a settlement calculator online should not be much of a challenge today. Plugging in the numbers, including the number of payments left on the plan and the amount of those payments, can help to give you a better idea of what it is worth. Of course, you have to consider other things as well, such as any applicable discount rate. It might be a good idea to input your numbers into several calculators just to make sure that you are getting the actual value.
Knowing the amount that you have remaining can help you determine whether you might want to sell for a lump sum. Try to find a firm that is going to be able to offer you the best deal possible on the amount of money that you have remaining. Always take the time to consider just how much money you need right now to take care of your financial problem. Instead of liquidating all of the payments that you have coming, you might find that you only need to liquidate a portion of them. Use the calculator to determine how much this would be.
Getting an annual annuity payment makes a lot of sense for some people. An annuity can afford you the security and reliability of a regular income, regardless of whether it is from an insurance policy or from winning the lottery. Or at least, that’s what it is supposed to do. Annuity payments can guarantee you a regular income over a specific time-frame that allows you to live a normal life and plan for your future. Things don’t always work out like we want, however, and sometimes annuity payments aren’t as beneficial as we would have thought.
Some people may need to cash out their annuity to pay off unforeseen expenses, like emergency medical bills, that can arise suddenly through no fault of your own. Annuity payments may be great for the average person’s everyday life, but a medical emergency can quickly become too expensive for your payments to cover and leave you owing a lot of money. Annuity payments are nice for what they are, but if you find yourself in an unfortunate situation, then you may find yourself facing mounting bills and calls from collectors when your income simply can’t cover all your expenses.
Where to Look
When looking to cash in your annuity, there are things you can and can’t do. You can’t simply go ask for the rest of your money at the bank, for example, even though technically all the money is yours to begin with. They don’t have to give you anything until time for one of your payments, and then they will give you that, and only that, which you agreed upon when setting up your payments. However, you can sell your annuity to a company that specializes in buying annuities and structured settlements. This will let you get a lump sum of cash to take care of any needs or circumstances you might have found yourself in. Paying for education, repairing your home or car, paying bills, whatever you need to do. Not all buyers are the same, though, and different companies may offer differing amounts for your annuity. That’s why it is always a good idea to shop around and compare offers to make certain you get the right offer for you. That is why working with a broker is a great idea. By using their knowledge and expertise, you can get the offers you need in a timely manner, and be able to choose the option that is right for you and your family.
Most of the time, an annuity is going to be a relatively small payment given yearly, or monthly with the case of some types of settlements. Having that money coming into your pocket each month can be nice, but sometimes, it just is not enough to take care of all of the emergencies that can crop up. Medical expenses, home repairs, and other issues could all cause huge problems in your life if you do not have the money to pay for them. Those who are receiving payments do have another option though.
You could consider finding an annuity buyer that would be able to purchase the payments from you and provide you with a much larger payment. This can be quite valuable for those who need to have money right away. However, you need to make sure that you are working with the best buyer possible and the right one for your needs. One of the things that you have to remember though is that if you do choose to sell the annuity, it could have some tax implications. Make sure to consider those when selling, and talk with a professional about how it could affect you and how you might need to claim them on your taxes.
Take your time to find a reputable annuity buyer who can work with you. Look at the offers from a couple of different companies so that you can be sure you are getting the best deal for the annuities you are selling. Get a number of quotes from those companies and research the companies to see how long they have been in business and what other users have to say about them. The more research you do now the happier you are going to be later. Find the buyer that is right for you.
Injury due to the negligence of an individual or company may entitle you to a monetary settlement to help ease pain and suffering, and provide you with the means of paying off your expensive medical or legal bills. When you go to court, a judge will hear both sides of the case, weigh the facts carefully, and then make a decision based on the information gained during the court proceedings. This can often result in an award of a very large sum of money. And though it would be nice to get all that money in one whack, chances are good that it won’t happen in quite that way. Many times, judges simply won’t award money in a large lump sum.
Cause and Effect
Most of the time, a court will avoid paying out these large sums at once because of the effect it can have on a defendant’s financial situation. A huge lump sum, paid all at once, can ruin an individual and put companies out of business, affecting not just one person, but many, many people negatively. This can also prevent you from ever collecting the amount owed you through the settlement.
Advantages of Structured Payments
Though it can be good to get your money in a lump sum payment, there are benefits for courts who avoid handing out large settlements in one lump sum. By setting up a structured payment plan, courts can be assured you won’t blow through your award in a very short time, guaranteeing you a reliable income that can sustain you for the long term.
If a court does decide that structured payments would be better for you in the long run, you still have an option if you feel you have a definite need for a lump sum cash payment. There are companies who will buy your settlement for a percentage (selling your settlement or annuity will never get you the full amount of your award), granting you access to more of your money than you would normally receive by monthly payments.
Facing these challenges is always better with a trusted and honest broker to assist you when starting the process of selling your settlement. Utilizing a broker can give you the advantage you need to keep yourself on a solid financial footing, and give you what you need in order to move ahead with your dreams and goals for the future.
Most of the time during an injury settlement, the injured individual is simply not going to be able to see all of the money from a large settlement at once. The injured party and the insurance company who will be paying out the settlement for a fixed period. The payment terms for the settlement can vary. In some cases, they may last the entire lifetime of the claimant. They payments from a structured settlement annuity aim toward providing long-term financial care for the claimant. This means that it is very important to make sure that the annuity provider is reputable and has the proper credentials.
In some cases, the payments are monthly, and in other cases, the payments will be yearly. It all depends upon the terms of the agreement. It is generally going to be preferable to choose annuity payments rather than have the entire lump sum handed over all at once.
First, when someone receives a large sum of money all at once, he or she tends to overspend. Perhaps they’ve struggled at other points in their life and finally have the money to be able to buy the things they’ve wanted. This is an easy road to disaster. One of the other big reasons to choose a structured settlement annuity with payments is that with the lump sum, the claimant will not receive the full amount. It is possible to sell future annuity payments, but you will not always receive what they are worth. It is possible to find some quality companies that will offer to buy the annuity payments though.
Those who are in a position to receive a structured settlement annuity should always take the time to talk with a qualified attorney about the pros and cons. The attorney will be able to guide them through the settlement process to ensure that they are making the best decisions along every step of the way.
Every day there are individuals that receive a structured settlement annuity as their award in a civil lawsuit, as a result of injury or damages incurred at the hands of another. Many times, the annuity is payment for misconduct, negligence, or medical malpractice. Sometimes the amount of the monthly annuity payment is not enough to cover the expenses of the claimant, who might have to seek cash for their structured settlement as a way to survive.
Awarding a Structured Settlement
Courts often accept structured settlements as the method for paying the award. To the judge, it might offer significant advantages to the claimant in that it provides a monthly payment to meet living expenses, pay for education costs or even offer retirement income. Sometimes, it works as an effective tool to minimize the ability of the claimant to spend the bulk of the award in their early years, having no funds left as they age.
Terms and Conditions
The problem with agreeing to the terms and conditions of a structured settlement is that it cannot be changed, deferred, increased, decreased, or accelerated. Any time the claimant’s life changes, he or she is still stuck with the original arrangement of the structured settlement annuity. When this happens, many claimants seek ways to find cash for structured settlements they own.
There are numerous reputable companies that eagerly pay cash for structured settlements. However, before selling, the claimant or beneficiary of the annuity should determine exactly how much cash they require. The full amount of the structured settlement does not have to be sold, as companies are eager to purchase even a small portion of the annuity.
Once the determination has been made on the value of the structured settlement, an offer or quote will be made. It is advisable to obtain at least three separate quotes from different companies that offer cash for structured settlements, to ensure the beneficiary is receiving an adequate amount.
One of the biggest benefits that a lump sum settlement is going to be able to offer is peace of mind. Those who are in need of money quickly will find that having the ability to receive the money all at once is going to take a huge weight off their shoulders. Being able to pay for emergency dental work, car repairs, educational expenses, and other emergencies is going to be very beneficial.
Most of the time, it is not going to be easy to get a lump sum settlement right away, and you will have to talk with other financial institutions and specialists after you are in a structured settlement agreement. If you need to do this, you have to take the time to research those institutions to make sure that you are working with a company that has a good reputation and that will be able to provide you with the help you need at a fair price to you. Take your time to compare the offers from different companies so you can be sure that you are dealing with the best.
If you decide that you are going to sell your annuities for a lump sum, you do need to be careful with the money that you receive. It is always a good idea to have a solid plan in place for the money that you are going to receive. Those who come into a large sum and who do not have a plan will often tend to spend much more than they should, and that could lead to further financial problems in the future. Instead, you are going to want to make sure that you spend only on your current emergency or need, and then place the remainder of the money into a savings account or an investment.