If you’ve been in an accident, won or settled a lawsuit, or received a payout from a lottery, you may receive a structured settlement annuity. What this means is that you receive your settlement in monthly payments rather than a single lump sum. A structured annuity can last for a set period of time, 30 years for example, or until the death of the beneficiary.
If you have debts, medical bills or a significant expense looming, you may want your cash up front. There are many services that buy structured annuities in exchange for a single cash payout. In fact, you may have seen a commercial or even been contacted by one of these companies since they market their services aggressively. Many brokers will offer different types of structured settlement loans as well. In these situations, you can borrow cash against your structured settlement, just like you can with a loan for any other asset.
You should never feel rushed, confused or taken advantage of during the selling process. If you do, it may be a red flag that you should not work with a certain factoring company.
Hiring a broker may help you through this process. Similar to a realtor’s role when you sell a home, a broker will help you sell your annuity for the best price, recommend annuity buyers they’ve worked with previously, and explain and complete paperwork on your behalf. If you decide to hire an annuity broker, make sure to ask about their brokerage fee and confirm they are certified and licensed.
Annuities pay out income over an extended period of time. The insurance company funds the annuities with income from investments. If the insurance company does not continuously operate for the life of the annuity, who do you think is the biggest loser? You! This dependency on the strength of the insurance company also applies to variable-annuities, where the client chooses and manages the investment-products, and they are not under direct control of the insurance company.
Still, the insurance-company is doing the administration, and funding certain features of the annuity, so that when financial problems arise, it can tie-up your funds. The bottom line here is that the companies that have withstood the financial test of time should be the first ones to be approached.
What Is Structured Settlement?
After an injury, accident, settling a mesothelioma lawsuit you may receive a structured settlement annuity. Through this, you receive monthly payments than a lump sum. The duration is different for every person and case. This annuity can last for more than 3o years. A structured annuity can last for a set period of time. It could be for 30 years or until the death of the beneficiary. Now if someone wants to get the urgent amount for any purpose then you can sell your annuities to meet your requirements. Different companies and brokers offer different prices and loans. Even you can borrow some cash against your annuity or structured settlement. Moreover, you can sell the whole annuity and also a part of it as well. There are many factors that determine the amount actually. Like the number and frequency of payment, the total amount etc.
One of the most often asked questions is how I can get money for my payments as fast as possible? Unfortunately, this is often asked AFTER the transaction has been approved and they are STILL waiting for their money. Know your options BEFORE you accept any offer. We have counseled you throughout this page to understand it isn’t the “offer” that you should look at when making a decision, but it is the actual amount of cash you will be given at the end after all fees are paid. This is what most people do not understand or realize through this process. They think they are getting $37,000 because that was the offer, but after all the fees are subtracted, they get $22,000 in their account and they just don’t understand why. It is because they did not understand the full value of the transaction, nor did they completely read the offer they were given. They just simply accepted it because they trusted the company.
Getting your structured settlement cash is easy once you choose the right settlement buyer, but choosing the right company can sometimes feel like a nightmare, and what you would love to do is go to a structured settlement site similar to Expedia for travel and put in your details and get multiple offers. Unfortunately, because of the complexity of the industry and the importance of protecting your privacy, there is not a service which will do that for you.
Structured settlements are legal settlements where a defendent pays a specified settlement amount to a plaintiff in installments over time. For instance, if you win a $50,000 settlement, you may receive $1,000 a month for 50 months or $1,000 a year for 50 years, depending on the terms of your structured settlement. Structured settlement payments can also result from other annuities of various types. Instead of receiving a settlement over the course of many months or years, many people prefer one lump sum which can then be spent or invested immediately.
Read the Rankings
Start with the Better Business Bureau (BBB). This is a great resource for researching a structured settlement company. The BBB calculates a company’s track record by counting up all the positive reviews and complaints. It then assigns each company a score, similar to a grade in school.
A company receiving an “A” generally provides excellent service, while a company receiving a “C” provides mediocre service. SenecaOne is proud to have earned an A+ rating from the BBB. It was also ranked in the top 6 Structured Settlement companies by AdvisoryHQ.
Emergence of Structured Settlement Purchasing Companies
With an increase in the number of structured settlements, more and more people had special circumstances.
Life happened and individuals scheduled to receive payments were unable to borrow against the settlement income when emergencies came up. In some cases people couldn’t wait for their money to arrive and wanted a way to access the money they knew would come to them eventually.
Enter the secondary annuity market and structure settlement buyers. A secondary market was created when, structured settlement buying companies emerged as a solution to that particular group of settlement owner’s problem.