The dynamics surrounding structured settlement

A structured settlement is a legal technique used by courts to restore the income lost by a person through the fault of another person. Courts use this technique because most people lack the capacity to competently manage the huge payment stream awarded in a personal injury case. Thus, a structured settlement is viewed as a great way of guaranteeing the financial security of the affected individual. It entails an agreement between an individual (complainant) and a defendant. This results when the complainant files a personal injury lawsuit in a court and wins the case. The at fault person is mandated to provide regular income to the complainant based on the amount of cash proposed by a judge. The insurance company of the defendant agrees to offer compensation to the complainant through regular payments over an agreed period of time or for life. The insurance company provides money to fund an annuity policy for the complainant.

selling future structured settlement payments

The procedure for selling structured payments

Individuals have the right to sell their structured payments to raise the aspired lump sum. In undertaking this process, it is important to consult a financial advisor or review this source to get guidance on how to sell your structured settlement payments. A person can choose various selling options:

  1. Limited number of payments selling option: In this option, a person sells the payments for a particular period-the first year- to get the lump sum. The only payments affected are for the first year. In the following years, the payments remain unchanged.
  2. A portion of every payment selling option: This option entails selling part of every payment received within the agreed period. For instance, if the structured payments run for 10 years, an individual decides to sell part of every year’s payment. A person is still guaranteed of getting regular payments each year but in lesser amounts.
  3. Entire payment selling option: In this case, a person decides to sell the entire structured settlement payment and receives a very large lump sum. The person stops receiving regular payments completely.

Key reasons for selling structured payments.

Structured payments represent fixed contracts not subject to adjustments. This is a key reason that motivates many people to sell them in order to get a lump sum payment.

To acquire quick cash to settle emergencies such as:

  • To finance debts and loans– medical bills, education loans, mortgage loans
  • To amass startup capital for entrepreneurial activities.

Functions of structured settlement companies

When individual make a decision to sell their payments, structured settlement companies help them to acquire a worthy lump sum. Once customers contact these companies, they perform a number of tasks:

  • The companies’ representatives explain to the customer the amount expected from the sale of payments after computing the amount and considering the discount rate.
  • The company provides the customer with a contract if the offer provided is endorsed
  • The company seeks contract approval by a judge after which the sale of the payments is implemented.
  • The company sends the money to a customer’s bank account.
Strategies for choosing the right structured settlement company
  • Conduct extensive research to establish the credible of a structured settlement company.
  • Consult an expert in structured settlement to extend relevant advice.
  • Confirm that the company chosen offers a free and written quote.

A brief review of some of the best structured settlement companies

  1. J.G. Wentworth Company: It is considered a reputable company. It has been in the business of enabling individuals to sell their structured payments for over two decades. Individuals are assured of an attractive amount of money when they conduct transactions with this company. The company guarantees, exceptional and personalized customer services, an attractive price for customers, free quotes, bonuses and payments in advance.
  2. Olive Branch Funding Company: The company supports customers as they strive to sell their structured settlements. Comprehensive advice is rendered to customers by the company’s consortium of professionals who are well versed in matters to do with structured payments. The company’s main objective is to enable individuals acquire lump sum payment within the shortest time possible.
  3. SenecaOne Company: It not only focuses on lending a helping hand to individuals as they sell their structured settlements but also extends financial advice to enable them to inculcate good financial habits. The company has a strong culture of quick payment to individuals. Qualified individuals are able to receive an advance payment before the final payment is approved. Customers are treated to a wonderful experience since they are furnished with all the necessary information pertaining structured settlement services offered by the company.