annuity

What You Need To Know About Structured Settlements

For almost four decades now, structured settlements have been a favorite means of compensation in personal injury and wrongful death cases. Structured settlements are designed to fulfill the needs of the recipients for a certain number of years or a lifetime as the case may be. To very many people, structured settlements are a bulwark of financial security in case of any tragedy.

Courts usually use structured settlements in a diverse range of cases to supplement or replace an income stream that was lost thanks to another party’s negligence. It is noteworthy that structured settlements do not affect a person’s eligibility to qualify for different forms of aid. That means that if an individual receives a settlement, the amount they receive doesn’t affect their eligibility for Social Security, Medicaid as well as other disability benefits. More, the income a person receives from a structured settlement is also cushioned from taxes, and that is why most litigators recommend for their clients to take structured settlements instead of a lump sum payout after victory in a personal injury lawsuit.

Selling your Structured Settlement Payments

After an individual receives his or her structured settlement, he has the right to sell it for any reason, and especially when he is facing foreclosure; buying a car or a house; paying medical fees; paying attorney fees; etc. He can sell part or all of the structured payments.

Well, a structured settlement is always set up to satisfy the needs of a surviving or injured person. However, those needs can change, and the settlement owner might desire to access his money immediately. If he sells his future structured settlement payments, he’ll be able to access the money quickly and, therefore, deal with the emergency. Thankfully, there are state and federal laws in place to cushion structured settlement owners against shady and unscrupulous companies. In most cases, folks who need quick access to the money in their structured settlement fund trade their future payments with a lump sum. These shady and unscrupulous companies prey on desperate individuals in need of money urgently.

Therefore, it is wise to ensure that when you are working with a structured settlement buyer, all fees chargeable should be in writing and that no attorney fees are passed onto you.

Lastly, before you cash out the structured settlement, you’ll have first to present your case before a judge to approve.

sell your structured settlement

Structured Settlement Companies

When searching for a reputable and trustworthy structured settlement company to work with, there are some factors you ought to consider. For example:

  • The willingness to assist you- The ideal structured company should demonstrate a willingness to assist you through your problem by treating you with patience and respect and offering you a high level of service.
  • The amount of time they have been in business- It is prudent to choose a company with a track record of success. If they’ve been representing clients pursuing a structured settlement, then it is most likely that they will succeed with your claim, too.
  • Ability to get quotes quickly- don’t waste time to work with a structured company that can’t get quotes quickly.
  • The ideal company has to commit to having all the agreement in writing.

Below are some of the most reputable companies any individual can work with:

  1. JG Wentworth- JG Wentworth sits in the pantheon of the world’s largest purchasers of structured settlement payments. It has been in this trade for a quarter a century now and has an A+ rating for exemplary customer service with the Better Business Bureau.
  2. Olive Branch Funding- This Company makes it incredibly easy and fast to get money for your future payments. If you call the company, you’ll get a quote instantly. More, if your information is in order, you can sign documents electronically using DocuSign. In case you are stuck on the way, there is a representative ready to help you complete the process.
  3. Seneca One – The Company is a member of National Association of Settlement Purchasers and has an A+ rating with Better Business Bureau. It offers exemplary service geared to meet customer’s unique financial needs. More, it has some of the most innovative programs in the market today, for example, the $5k Right-Away Cash Advance Program for qualifying structured settlement annuitants.

Keep in mind that before you sell your structured settlement, you have to go to court, before a judge, to get approval.

Sources:

Sell Your Structured Settlement on Washington Accord

https://en.wikipedia.org/wiki/Structured_settlement

annuity

Sell Your Annuity for the Highest Price Possible

If you’re a retired senior who is looking to make some income, selling your annuities may be a wise investment option. You can contribute a lot of cash to your future savings by following the simple steps to annuity success. By understanding annuity and keeping track of your payments, you can profit from selling annuity payments from your insurance.

What is an Annuity?
Simply put, an annuity is a fixed payment sold by insurance companies. By using it properly, it can help you set aside money into your savings without having to pay taxes on it. By investing it wisely, you can double, triple, and exponentially increase your retirement funds. To understand annuity further, there are two basic types of annuity that you should understand before selling annuity payments:
• Immediate annuity. This type of annuity lets you receive payments as soon as you make your first investment. This is usually a preferred option by those who are nearing retirement.
• Deferred annuity. This automatically accumulates money while the annuity pays out. It can sit for a long time or it can be cashed out as soon as the annuity owner wishes to start receiving payments.
Annuities can also be variable or fixed depending on the type of payout preferred. You can opt for a fixed sum tied to the overall performance of your investments, or you can combine the two options for potentially bigger savings.

Annuity Selling Options

Now that you’re aware of the investment opportunities that lay with selling annuity, there are a variety of ways that you can get started selling annuity payments. Those who are looking to retire are often faced with two main options: Partial and entire annuity selling. If you’re looking to invest immediately, consider these options for the best value.

  • Partial Annuity Selling: You can sell a portion of your insurance annuity payments and contribute them to investments. Meanwhile, you can continue receiving your regular income without worry of being short on cash or savings. This also allows you to keep your tax benefits.
  • Entirety Annuity Selling: By selling the entirety of your annuity, you won’t defer any of your payments. You can sell the entirety of your insurance payments towards investments, which will give you a lump-sum payment in your hands. This is in the placement of periodic payments, giving you much more control over your savings.

How To Sell Your Annuity Payments

Selling annuity payments can help get you out of any period of financial troubles. If you are looking to retire with a fair amount of cash in your savings, this is the right choice for you. The process of selling your insurance payments can be fairly simple, especially if you are looking to invest. Here are a few tips to get you started:

  • Make sure that selling annuity won’t hurt your savings, and that you can continue receiving insurance payments.
  • Contact an annuity investment professional. A professional can help you on your way to retirement by making sure that none of your investments are deferred and you are getting the cash growth that you need.
  • Get a cash advance. Many professionals can offer you an advance so that you don’t suffer any downtime with your payments.
  • Set a court date. Once you have made the decision to sell your income, you can set a future date to settle your reasons with a judge.
  • Get cash! Once the judge accepts your payment transfer, you can immediately start saving for the future.

It can take anywhere from 1-2 months for an annuity payment case to settle, and in the meantime, you want to make sure you’re getting the correct value for your investments. Whether you decided to invest all of it or a partial amount, make sure you have enough while you wait for the approved payment period. How much will you get from your annuity payments? The amount of cash you receive depends on who you sell with, what your reasons are for selling, and what your initial insurance payments amounted to. The more annuity payments you sell, the more cash you will have in your hand. Invest in the future by putting all or some of your payments aside to sell.sell annuity payments

Top Reasons for Selling Annuities

There are several reasons why a retired or soon to be retired individual might want to sell annuity payments. While this list isn’t comprehensive, it covers some of the major ideas that can make a successful investment:

  • Starting a new business, or investing in a business.
  • Paying off debt, including student loans, medical debt, credit card debt, and more.
  • Investment, for stocks, retirement funds, property, or future savings.
  • Buying or fixing up a home.
  • Losing a job and looking to invest for the future.
  • Assisting family members in need.
  • Inheriting an annuity and looking to sell it for cash.
  • Buyer’s remorse.
annuity

Courts have finally recognized the need of all structured settlement and annuity payment brokers to be licensed

Annuity brokers

Structured settlements are one of the best ways to make the most out of your financial situation in certain cases. It is one of the best ways to receive a settlement amount and offers numerous benefits especially in cases where an accident leads to injury to one party. Settlement is just an amount of money which you receive in return of some kind of accident as a financial obligation and when you choose to receive it in a structured manner, you get the same amount in the form of several installments of payments rather than as a lump sum. This is quite helpful because when people receive money in lump sum, they end up spending it on things that they should not. This leaves their medical bills unresolved and unpaid.

Also, in many cases, they are not able to save desired amount of money after the treatment. The money which will be given to you in the form of structured payments which will be sent to you regularly. It is beneficial for one to take a structured settlement instead of taking one lump sum payment as it saves money which you could have lost to income tax and also ensures that you get money in equal and regular installments so you have better control and can manage your income better. It encourages increased cash flow and allows you to receive it continually for a long period of time. So, if you are looking for stability and cash flow, you cannot go wrong with structured settlements.

Current annuity payments brokers in the market

We often get emails from people asking us: multiple companies want to buy my annuity and I don’t know which one to choose. Before we get into that you have to know who exactly is a structured settlement or annuity broker? A structured settlement broker is someone whose job is to assist people during times of claim disputes. A settlement is issued in the form of a structure instead of a lump sum payment from one party to another. The main aim of the broker in such cases is to facilitate the decision making process. The broker works, sometimes in collaboration with other brokers, to assist these individuals resolve their matter and carry a structured settlement transaction successfully.

If you did not know, it is not uncommon for structured settlements to be funded with annuities. These annuities are issued by life insurance companies which leads to your broker earning quite a nice amount of initial commission. Therefore, it is of paramount importance that you contact a qualified and licensed broker who has the knowledge and experience to guide you in the best direction rather than manipulating you to make a decision which benefits only him or her financially. What do we exactly mean by a license? In very basic terms,the license of the broker should be issued by the insurance departments in any of the states that they conduct business in. This means, that if a broker is working in the city of Washington, they need a license by the state if they want to keep working legally in the city. In case they don’t, they will face punishment for deceiving their clients.Usually a state license works well but if your case involves variable structured settlements, it is necessary for your broker to be licensed through the National Association of Securities Dealers.

Licensing Structured Settlement and Annuity Brokers

A structured settlement broker needs to have a valid insurance license because most of the structured settlement transactions are funded with insurance vehicles. Sometimes, only an insurance license does not work and needs to be complemented by a securities license. No matter what these professionals call themselves – a structured settlement broker, structured settlement agent, or even a structured settlement consultant – they would still need a valid insurance license at least to conduct their operations without any issue.

Why has this necessity arisen? The main reason behind the strictness is factoring companies. There are numerous factoring companies around which are working without a license. A strict license requirement has been imposed on structured settlement brokers but they continue to operate despite not being licensed.

What exactly is a factoring company?

A factoring company simply performs the job of factoring your money. In other words, it takes in your structured settlement deal and pays you in a lump sum (or some other method you may prefer over the lump sum). So, basically they are just changing your payment scheme from one type to another. However, they don’t project themselves in the same light they work. They mislead people and appear to be something other than what their actual purposes are. They falsely advertise their services and many times also lead to their clients making decisions which are neither wise nor profitable.

A license will ensure that the structured settlement broker is not someone from one of these factoring companies but a professional who knows about the insurance scheme and wants to help you achieve your financial goals. Factoring companies that project themselves as structured settlement brokers should refrain from doing so and misguiding clueless people. They should reflect what they do in their advertising instead of using false identities to hide their true nature.

https://www.opm.gov/retirement-services/my-annuity-and-benefits/annuity-payments/