Many civil cases particularly personal injury lawsuit never go to trial since parties involved often reach a settlement agreement during the litigation process. The defendant may agree to provide compensation to the person bringing the lawsuit (plaintiff), which can be paid as a lump sum or can be paid over a predetermined period. When all or part of the damage is paid in regular payment, we call that kind of arrangement as a structured settlement.
More often, the structured settlement is created through purchasing annuities, which guarantees a stream of income to the plaintiff. The structured settlement can be provided in any predetermined schedule are per the plaintiff choosing, for instance, the money can be paid in annual installment or over a number of years or for the rest of the plaintiff life. Some of these payments options have their disadvantage among them tax expenses; therefore, any time a plaintiff decided to choose structured settlement, they should hire a tax attorney, a personal injury lawyer, or a financial advisor to explore the consequences of each option.
How To Get Cash For Your Structured Settlement
A typical structured settlement involves a defendant or his/her insurance company signing an obligation to pay you, as the claimant through a third party. The third party will purchase an annuity that fulfills the required payment done to you The annuity is commutable; it’s non-assignable and not transferable; therefore no one will be able to stop it under any circumstance. As the claimant, you are the only person who is legally allowed to sell the structured payment and receive the lump sum amount.
People sell their settlement for different purposes, and if you are considering doing the same, you should not take the selling decision lightly. Do not sell your settlement because you want to. Here are some common reasons you may need to consider selling your settlement.
- Paying existing debts, especially those that has high rates attached to them.
- Making a down payment for a new home
- Paying off unexpected medical bill,
- Pursuing a lifelong dream of starting a lucrative business
- Paying off college fees for a better career
Simply put, getting cash for structured settlements can be advantageous as long as you are able to invest the lump sum amount you receive and earn higher returns in the long run. If you are looking for way to sell your settlement, you should be aware of different ways to do that. In essence, you can either sell a part of your settlement, or you sell full settlement payment and receive a lump sum. The best way to avoid making any costly mistakes it is to hire the right settlement broker.
How to choose the right structured settlement company
In any industry, there are only buyers looking out for the best interest of their customers, but there are unscrupulous buyers out there without your best interest in mind. Below are three things you must look for when looking for the right settlement company. Sometimes the judge may deny even the best buyout, and at times there are good reasons for that, but sometimes the court may give an invalid reason. In that case, you might need to use another company with a better rate. To make sure you do not land in a “landmine,” we have included out top recommended company you might want to consider.
- Must show genuine interest in helping you: Make sure that the settlement companies you choose demonstrates a high level of service to their customers. Remember they are your representative, therefore should address any concern you might have, and most importantly, they should be able to support you throughout the process.
- Reputability: You want to choose a company with good track of record for success. You might find a company with long history of active transaction preferable.
- The purchasing price of your settlement: When you receive quotes from different companies, you might realize that there are a huge different with the lump sum you will get with different settlement companies. The huge different comes from the duration of the agreement, the sooner you receive your payment, the more lump sum amount you are bound to receive.
Top companies you might want to consider
- JG Wentworth: JG Wentworth is an industry leader when it comes to purchasing structured settlement. With over 25 years of experience, they have been able to purchase over $ 3 billion of future payment.
- Olive Branch Funding: Olive Branch has for the best part of their existence proven to among the best structured settlement company. Unlike many companies, Olive Branch funding focus on three areas, buying annuities, and lottery winning, therefore you expect that they will show genuine interest in you.
- SenecaOne: SenecaOne does more than buying settlement annuity: they will come up with opportunities they believe will be most suitable for you. Most of the opportunities they present are designed to help you realize your long- term financial goal. Since they opened their door in 2002, they have helped thousands of people get a better part of the bargain while easing the complicated transfer process for a structured annuity.