In a structured settlement, a person settles a claim of a personal injury through receiving a portion of the payment over a certain period of time as compensation, instead of receiving a lump sum amount of money. The insurance companies are the main financial institutions that have these arrangements.The plaintiff can demand a structured settlement or the defendant can offer. The two parties agree to the terms and conditions of the settlement. Income tax may be included in the structured settlement. It helps in avoiding a lawsuit and lowering the legal costs. Canada was the first country to implement structured settlements. Mainly, it is used in injury cases and product liability. The payment streams can be sold out for some reasons. This mainly depends on the needs and the requirements of the person selling their annuity. Here are some of the reasons why people sell their structured settlements.
Cashing structured settlements – why and how?
A structured settlement may come up when a claimant negotiates with the defendant or its insurer, so as to have a lawsuit dismissed. The two parties agree on a schedule of a periodic payment rather than making lump sum payments. The insurer assigns its obligation of the payment to a qualified assignment company. The assignment company becomes the representative that receives the money from the insurer to buy a funding asset that is qualified. This may be a government obligation or the annuity. The representative can be a life insurer and makes the payment to the plaintiff over time and in portions. A person may decide to get cash for structured settlement for a number of reasons. They might sell to purchase a larger lump sum, to pay off debts or educational loans or even to start a business. This varies from person to person since different people have different needs. Most people sell their structured settlements due to change in circumstances, and are not in a position to obtain financial help elsewhere.
Choosing A Structured Settlement Company
It is important to bear in mind that the company you choose takes up the responsibility to come up with the terms of an agreement, obtain the approval from a judge in a court of law and create a good relationship with the payer. The best structured settlement companies ensure that their clients get the highest possible payout.
One need to consider some aspects of the company:
- Period of existence. The company of choice needs to be in the business a long period of time.
- The functionality of their website. It is through the website that you find vital information about the structured settlement company and about the process that is involved in the selling of the structured settlement.
- The customer service. The company’s customer service should be in a position to respond promptly and offer supportive service to you whenever you need one.
A good structured settlement company will have the following signs:
- Offering personalized service where a real human serves you instead of an automated telephone.
- Allows you enough time to evaluate the agreement.
- Explains clearly and take their time ensuring that you clearly comprehend the process of selling your rights.
- Below are some of the top structured companies that are globally recognized.
This company has diverse financial services. It is dedicated to providing financial solutions via several ways. These include structured settlement, annuities, refinancing, mortgage lending and several other services. It is the most renowned structured settlement company in the United States.
Olive Branch Funding
It focuses on providing cash solutions by buying structured settlement payment. The company exchange these payments with lump sum cash. The lump sum is usually tax-free. This allows their customers to have financial flexibility.
The company has operated in this area of financial services for more than 20 years. Besides helping their customers through the process of selling their structured settlement rights, it offers financial counseling services to ensure that their customers attain their short term and long term goals. SenecaOne offer separate structured settlement from lottery winning services. There is a toll-free line for structured settlement customers.
Therefore, it is important to know your preferred company and understand the process of claiming or selling your structured settlement rights. The above information can be helpful when making a decision on the company that will offer you the best service.