Structured Settlement Explained

Structured settlements have been used in solving civil cases for over three decades now. They are used particularly used in accident and personal injury lawsuits. In structured settlements, the plaintiff discontinues any legal action in order to receive a payment. The payment act as compensation for the injury caused. The money that is paid is usually a lump sum or it could be regular payments over a period of time. It can be a great source of income to the individual awarded. It also provides future financial security In the case of a catastrophe. Structured settlements are usually helpful in situations where the plaintiff suffers a permanent / catastrophic injury. The defendant’s insurer funds an annuity policy for the plaintiff. Annuity ensures that there is a steady stream of income over the period that the settlement covers. An annuity contract has details of the payments that the plaintiff will receive from the insurance company. Before entering into a structured settlement with anyone, you need to discuss all the possible options with a personal injury attorney, a tax attorney or a certified public accountant. They help in analyzing the pros and cons of such a settlement. Usually, the money paid is meant to cover the plaintiff’s needs. However, sometimes the need change and the plaintiff may opt to sell future payments and receive a lump sum. Cases the result in a structured settlement include those involving severe injury, worker compensation cases and wrongful deaths. In cases of death, a surviving member of the deceased is usually awarded the structured payment. Structured payments are usually preferred to lump sum payments because they are shielded from taxes.

Different needs and the financial situation may result in one selling their structured settlement. Times change and needs change too. A new need could arise at an untimely hour. People turn to unusual places to get money. One could decide to sell a scheduled lottery ticket, to sell a house or even a structured settlement. Selling of an annuity for instance if one has lost a job is not a bad idea. Opting for a lump sum instead of the periodic option left to get you out of your financial crisis. Selling an annuity is not difficult. However, there is a process that needs to be followed. First, you make a decision that you want to sell your settlement structure. You need to have a good reason for doing this. No one can understand your financial situation better than you do. Most people that have sold their settlement structures say that they did it because, they wanted money to set up a business, money to pay college fees, money to improve or buy a new house or to cater for medical expenses. The next thing that you need to do is to look for a reputable company that will make the sale for you. Find a company that is not merely a broker. A company that is experienced in the field of structure settlements sales. Get a company that has an A + rating on the Better Business Bureau. Also, check out the discount rate then make a choice. After choosing a company that meets the required threshold, begin the paperwork. Provide your settlement agreement to the company so that they can verify that they are accurate and complete. After the documents have been verified, an attorney files the documents with a court and then a hearing is scheduled. You will be required to justify to the court why you need that money. You should also prove that you are not putting your family in future financial risk. Most of the requests usually get approved by the judges. After the request has been approved by the judge, the order is sent to the insurance company so that it can release the money. On average, it takes about 45 days before your money is released. However, it varies from state to state and it also depends on your financial need. The money is either paid in check or it is deposited in your bank account.

You need to be careful when choosing a company to represent you in court before a judge during the sale of you structured settlement. Money companies that deal with structured settlements exist , It is difficult to differentiate between the those that provide exemplary services from those that do not. Structural companies are usually used by courts in different cases to supplement or replace income that was lost through the fault of someone else. When looking for a well-structured company, you should be looking at the following; employee satisfaction, company’s age in the industry, financial health of the company and customer satisfaction. A good company also takes care of all the paperwork for you. Some of the reputable companies that you can approach when you want to sell your structured payments include.

1. Peachtree .
Peachtree is a leading purchase of structured settlement payment located in Boynton Beach Flo. It buys all or some of the structured settlements to help its clients out of financial crisis. They handle the sale of annuity promptly in an easy and stress-free manner. They are always available to attend to all customer needs. Their website is easy to use. It has an online chat for customer assistance. They have a national coverage and dedicated service representatives.

2. J.G Wentworth .
It is located in Radnor, P.A. It has been in settlement structure business for over 25 years. It is the largest buyer of structured settlements in the US. They are experienced in purchasing settlement structures, making payment so prompt. It handled over $ 2 billion in payments between 1994 and 2009. They are rated A+ by the Better Business Bureau due to their good customer service . It has locations in all the states of the US.

3. SennecaOne.It is an annuity specialist that has personalised approach in solving the customer problems. It was established in 2002 and has been providing exemplary services. Their customer service is always ready to help. They are very fast in settling of structured payments. Payment can be made after 24 hours.