Structured settlement is a negotiated financial legal arrangement customized in payments of the negotiated amount of money payable in annuities rather than in lump sum cash. In a lawsuit resulting to an award of damages for personal injury, the claimant may enter into a structured settlement agreement with the insurer to pay the money claimed. However, it works best as an alternative to a lawsuit, where an insurer enters into a financial arrangement with the claimant to settle the claimed amounts, over an agreed period of time convenient to both parties.
Ordinarily, a structured settlement arrangement is in itself a futuristic plan of financial stream such that it creates financial stability over a period of time that such settlements are meant to be made. From an economic perspective, it would help one to plan as though the money for an investment purpose or for any particular need that is consistent over time. The “income stream”, as it is often referred to, works best to ensure that the compensation is valued at the most convenient value, yet in the most beneficial value as a consistent income for the claimant. It is advisable to obtain independent advice for purposes of ensuring the structured financial arrangement is one that does not compromise the time or the value of the claim.
Selling a Structured Settlement
It is possible to cash out structured settlement before the completion of the periodic series of payments by the insurance company or the financial institution responsible for such an arrangement. Selling a structured payment may be of business value depending on the negotiation entered in the structured settlement. When you sell the settlement scheme, you receive the money earlier than anticipated according to the arrangement.
You have a choice of how many settlements you prefer to sell and which settlements you intend to keep for future financial stream. For instance, a financial stream may run unto 20 years, yet you may want to sell only 5 years from the 5th year, so as to continue with the arrangement after the period sold. This is advantageous in that it helps and secures one from taking a loan due to financial constraints or emergencies. So, indeed, you can sell your structured financial arrangement on terms agreeable with the buying company.
The Process of Selling a Structured Settlement
The process of selling and buying of a Structured Settlement is a legal court process that requires the authority of the Judge. It is designed to ensure that the claimants receive the best of their compensation money without exploitation from the buying companies. The process is therefore in the best interests of the claimant to cushion against any possible exploitation from the companies engaged in the transaction.
The initial step would be to find a buyer for the structured settlement, after which, terms of such sell and purchase are deliberated upon to establish a common ground. This is to ensure that the Judge does not decline to authorize the transaction. In most instances, the buying company will give you a quote for your consideration. The quote is non-obligatory, such that you can take many quotes from different companies to vividly inform your choice of terms to sell your structured settlement.
Essentially, the process is twofold, one, determining the amount one needs, and therefore how many settlement schemes to sell and the other, the finalization process by the court. Ordinarily, a good company would facilitate the process for you and keeps you informed of the stages of approval.
It is important to give sufficient considerations to the following factors for different reasons.
- Amount of Money needed- To ascertain the periodical settlements you need to sell.
- Value of Structured Settlement- Because every settlement is unique, the companies who buy the settlement will do so in a business-oriented manner, such that it is important to ensure that the settlement is sold for value.
- Buying Company – This is important to consider, highly because different companies have different terms or conditions that may inform your preference of one over another.
The aforementioned is the most important factors of consideration; however one may go into assessing the experience, efficiency and customer service that the company offers.
The Best Structured Settlement Companies
There are many companies that deal with structured settlements. It is therefore important to choose the right company to deal with when making a transaction agreement involving a structures settlement. The ideal top companies are JG WentWorth, Peachtree and Seneca. Here is a brief assessment of each.
- JG WentWorth: This is a 25 five year old company that deals with structured settlements in offering personal loan, Mortgage, Prepaid Card and financial planning. It brands itself as a fulfillment of the wishes a claimant to have the money sooner that he/she is bound to have them. It therefore offers a variety of options in getting money out of selling structured settlements.
- Oasis Legal Finance: Oasis Legal Finance is a financial solutions company that offers cash settlements from a future structured settlement payment sooner rather than later. The company guarantees an apt decision making process as well as prompt representatives who promise to offer quality advice and customer service.
- SenecaOne: This company promises to meet your financial need as and when they arise if you have a structured settlement. Their branding is premised upon the fact that your immediate financial needs won’t wait for your future payments. They offer Prepaid Card services, wherein they pledge that structured settlement customers who enter a transaction are likely to get up to $5,000 within a span of 24 hours. They do not require good credit status or employment. They also offer a variety of loans based on structured settlements
These companies are a few of the many that are in the market. To choose the most suitable company, it is important to consider how fast you need the money and the value for such money. Not all companies will meet the timelines and the most appropriate value for your money. It is also important to look into the basics of quality customer service and experience of the companies before making a choice.
This is therefore a convenient financial arrangement that ensures financial needs for claimants are met with less burden and procedurals of obtaining money in the mainstream mechanisms. As an investment or future financial stream, it also works excellently well. Structured settlements are indeed profound financial arrangements to consider.