Structured Settlements

Do I Need a Structured Settlement?

2008-07-30T00:46:00.001-07:00

Right now, you may not think that you would need a structured settlement to settle a dispute between you and another party. However, in the long run, this will be the only way to settle the dispute, especially if the other party decides not to cooperate with you. A formal structured settlement will keep both parties together throughout the dispute, and ensure that the party asking for the structured settlement will get what they deserve.

If the settlement you have is very large, a good idea would be to use multiple insurance companies. This guarantees that if something happens with one company, you will not lose anything. It's basically an extra layer of protection, helping to make sure you get what you deserve. Insurance companies can go bankrupt, please do not think that they are incapable of error. That is a common misconception, which leads to more disputes and problems that you do not want to have. Get your annuity payments now and do not let it turn into something that you do not want.

If you do need a structured settlement written up, then you can contact many different companies to ask for a structured settlement. The company will allow you to buy structured settlements from them for a good, fair price. You will eventually be paid for your structured settlement, so you shouldn't worry about the price now. Get your structured settlement today, and live happily for the rest of your life.

For more information, please visit Why do I need a

Need of Life Settlement Services

2008-07-12T00:45:00.001-07:00

There will come a time when a life insurance policy is no longer required or wanted, especially in old age. A viatical settlement provides you the capability to regain needed financial safety. The logical thing to do in such a case like this will be to sell it and offer it up for the life settlement services. Most of the times this can work for the good of the unique life insurance policy holder as it could be sold for possibly more cash value than the policy holder might have gotten if he turned it in. This could be done with the help of life settlement services offered by a lot of qualified firms. Senior citizens would find these services very much useful if they intend to add a bit serious support to their retirement stash.

Your settlement amount would be determined by the original amount of the life insurance, the cost of the premiums, your life expectancy, the current and projected interest rates and also the health of the insurance company which is providing the insurance coverage. All these factors are taken into account when determining on your life settlement value.

Seniors on fixed incomes could use this money for whatever they need. In some cases they would pay off medical bills or use the funds from settlements to make their lives much more comfortable. Others will utilize these funds to purchase a few gifts for their family or go on for a dream vacation. Whatever you use these funds for; this approach seems to be much better than just allowing the life insurance cover to lapse and getting nothing at all. You will also receive a percentage of the funds now instead of your assets after you are gone.

Once the policy holders find a good financial company that offers settlement services, their insurance papers can be evaluated and computed. This way, the policy owner will know this particular option is a good decision. Cash amounts offered in exchange for the insurance would vary and a life settlement services company would act as the medium that will look out for the best likely deal in favor of the policy owner. The policy holders can get rid of the monthly payments they should make and obtain instant funds that could be channeled to other pressing concerns, like health issues and the retirement lifestyles, for example.

Life settlement services were well designed to address the needs of the aged. These companies understand that being in the grown-up age range changes a senior's requirements and life insurance may not be just one of them. Once money is brought in as profits from settlement, seniors have the freedom to use it as they please. In exchange, the policy's ownership is transferred to the person who purchased it, thus making it a win-win condition for the original and the new policy holder. This is a legal procedure, regulated by the government insurance departments. When it's the more feasible option to sell a policy, it makes logic to employ life settlement services so as to get a good deal.

Structured Settlements - The Benefits of Having Cash in Hand

2008-07-08T00:45:00.001-07:00

Mr. Lane, a business associate and friend of my in-laws retired this year. In addition to Social Security, he began collecting monthly payments on two different annuities he started many years ago. And though the income from these annuities is enough to allow him to continue his lifestyle, he doesn't seem to be very happy.

I overheard a conversation this man had with several people at a family gathering. He was saying that he thought retirement would be more exciting. Mr. Lane has been a widower for more than 10 years and wants more from life than the same routine he has had for the last 40 years. He said he wanted to see the world, really see the world. He was talking about non-stop traveling for the next year or more. He also spoke of buying a vacation home in the tropics. He secretly told my father in law that he didn't have the funds to do these things. But he may be mistaken.

The annuities he holds are valuable assets. He receives monthly payments from the annuities for a pre-set number of years. If he dies before the term is over, the payments may be received by his heirs. The monthly income from both annuities is significant but it seems this man would rather have cash to have some fun in his retirement. Is there a way to achieve this? Yes.

There are both companies and investors willing to pay cash up front in exchange for receiving payments on private real estate mortgages, lottery winnings, structured settlements annuities and other cash flow' assets. Such companies often have a variety of options available and are eager to meet the needs of their clients. There are several options available to Mr. Lane. Let's take a look at a few:

He could receive a single lump sum for one or both of his annuities. In this case he would assign his rights to receive future payments to an investor and end up with all cash.
He could assign an investor the right to receive a portion of his payment for the entire term of the annuity or for only a specified time, say five years. In this case he'd get a lump sum up front and part of a monthly payment while the remainder of the payment would go to the investor.
He could assign his right to receive payments for a specified time. In other words, he might choose the term of seven years. So, for seven years an investor would receive payments from the annuity. At the completion of the seven year term, payments would revert back to Mr. Lane.

There are many companies in the business of purchasing income streams or investments. Some can be very creative in structuring a plan where the holder of a cashflow asset receives the funds they need while maintaining a portion of the payments for the future.

Hey, I just got a post card from Belize. It's from Mr. Lane. He says, I'd love it there. I think he's right.

Selling Your Annuity? How Much Will You Get?

2008-07-02T00:46:00.001-07:00

We have all seen the ads on TV for offers to buy your structured settlement, lottery winnings, or

mortgage note. The question is how much will you get? Well the answer to that is not straight forward, but here are a couple of factors to consider when determining the value of your annuity.

The main thing to consider is how long the receipt of payments will last. The more time a payment stream covers, the less it is worth in today's dollars. For example, if you are to receive $500,000 over 20 years, that is worth more than receiving that same $500,000 over 30 years. Why, because of the time value of money.

The time value of money essentially says that a dollar today is worth more than a dollar tomorrow, so it stands to reason that $500,000 collected over 20 years is worth more than $500,000 collected over 30 years. You can think of this from the buyers standpoint also.

If you have $50,000 invested at 12%, your money will tend to double every 6 years. After 12 years of compounding, you will have $200,000. But what if you only get 6%? Since at this rate, your money doubles every 12 years, it will take 24 years to compound to $200,000. Which is more valuable? Of course getting the $200,000 in only 12 years rather than 24 years is more valuable since you don't have to wait as long.

The second thing to consider is the current interest rate for long term bonds - that is a bond having roughly the same maturity or life as your annuity. You can expect to have your payment stream discounted to a present value lump sum using a rate close to this. This is because that rate is the investors next best alternative for a similar investment. What is meant by discounting your payment stream?

When a stream of payments is discounted over a period of time, it is essentially converted into today's dollars. In other words, how much money would you need to invest today (at the discount rate) to have the same amount of money as all the payments added together at the end of the annuity? This is the amount the investor is willing to pay for your income stream in order to earn the rate of return he wants.

The discount rate the investor uses can be higher or lower than the market rate - it just depends on what rate of return is required by the investor and how risky the annuity is.

What Everyone Must Know About Life Settlements

2008-07-02T00:45:00.001-07:00

A life settlement is a financial deal wherein an owner of a policy (this could be a life insurance that the owner no longer needs or wants) sells the said policy to another individual. This is usually sold at a much lower value than the cash surrender value that the life insurance policy is entitled when it matures. The third party who buys the policy would be the new beneficiary when it matures; along with this, he would also be the one that would take care of the premium payments that would follow.

Life settlements are advantageous to those who no longer need their life insurance-the major advantage is being able to get a fair price for the policy as compared to the cash surrender value that life insurance companies offer. In layman's terms, it gives more cash NOW , when compared with the money that life insurance companies give when the policy is surrendered before the holder's demise.

Not too many people are informed of this option not until a financial adviser or professional approaches them and informs them of the benefits. Most lawmakers now agree that it is the responsibility of financial advisers to mention this option to all of their clients. After all, the financial professionals are the ones who conduct transactions on behalf of their clients.

These groups of financial advisers are now highly-involved in the life insurance settlements business:

Certified Public Accountants (CPAs) or regular accountants

Attorneys

Insurance advisors

Wealth managers

CEPs and Estate Planners

Financial Planners/ChFCs/CFCs/CFPs

Charitable Trust Officers

CSAs or Certified Senior Advisors

Making a settlement could both be a blessing and a disadvantage. Since the policy is sold way before the demise of the policy-holder, this would mean that his beneficiaries would not have anything to look forward to when he does pass away. On the other hand, if the policy owner suffers from terminating illnesses such as AIDS, cancer, heart problems, or even kidney failure, the needed money could be easily gotten with the help of a viatical life settlement which is one of the two types of life insurance settlement the second being senior life insurance settlement.

Senior settlements permit senior citizens to convert their policies into instant cash. Brokers for these transactions can be found all over the U.S. and there is no need for the elderly to worry that they would be conned as they are protected by the National Association of Insurance Commissioners. This organization aims to protect the seniors from being victimized by rogue brokers and other financial professionals.

Indeed, there are two sides to the scale when it comes to deciding on whether or not to make life settlements. It's a life-changing decision that policy-owners should think of-a couple of times if they should.

Structured Settlements - A Brief Overview

2008-07-01T00:44:00.001-07:00

So you just were awarded compensation from a lawsuit or you just won the lottery - how do you get paid? In some cases you will receive a check for the amount awarded, but not always. Sometimes the courts or the lottery commission can choose to payout in a structured settlement. What is this?

A structured settlement is a payment stream resulting from compensation from a lawsuit, winning the lottery, or selling a mortgage note. The party receiving the payment stream has the guaranteed income over the life of the investment or award. There are good points and bad points to this.

One good thing is that you will have steady income for a long time to come. Some structured settlements last for 20 or 30 years. This will provide income for you and your family on a regular basis. It is also a way to keep the recipient of the award from spending all of his or her money right away.

On the other hand, a payment stream may not be a strong enough instrument to be able to get a loan for something you need right now, such as a home. Sometimes a large down payment is needed to get financing. In addition, the payment stays the same as inflation increases over the years. That makes the payments received 10, 20 or even 30 years down the road less valuable than the payments received today.

If you need a lump sum instead of a payment stream, there is hope. There are companies out there that will buy your structured settlement for cash. The process is a legal process that can take up to 10 weeks to complete, but you can have you money now instead of receiving payments over many years.

Selling a Mortgage Note? - Here is What to Expect

2008-06-28T00:46:00.001-07:00

If you have recently sold property and financed the buyer by taking back a mortgage or deed of trust, you own a Mortgage Note. You will be collecting monthly payments for years to come. But what is that worth in dollars today, and how can you get your money ahead of time?

If you need a lump sum of cash now, you can sell your mortgage note to a third party wanting a regular payment stream as an investment. There are many companies out there that will buy your mortgage, discounting the payments for the remainder of the loan back to present day dollars. But there is a watch out here.

Keep in mind that the interest rate that will be used to calculate what today's dollars are worth will be different than the interest rate on the mortgage note. Why is this? Well the investor most likely will want a different interest rate than what the mortgage note is for based on current rates.

For example, if the interest rate on your mortgage note is 6%, but the average rate in the market is 8%, why would an investor agree to 6%. He would still be getting the 6% on the face of the note, but by paying less than the present value at 6%, he makes up the additional 2% up front.

One last thing to keep in mind is that the higher the discount rate that a buyer uses, the smaller the lump sum payment will be. This also works in reverse - if the note says 8% and the current rate is 6%, an investor will pay a premium to buy that payment stream.

There are many companies that purchase mortgage notes, so it would be wise to shop around to find the best rate, terms, and reputation in order to get the right value for your sale.

Want to Sell Your Annuity? Here's How

2008-06-27T00:46:00.001-07:00

First of all, what is an annuity? An annuity is a form of structured settlement, where the owner of the annuity receives regular payments, most commonly resulting from some sort of court ordered judgment. Although this is the most common form of structured settlement, there are also lottery winnings, and seller financed mortgage notes that have the same qualities.

Why would anyone want to sell a virtually guaranteed income stream, and give up that cash flow? It could be that the income stream is set up to pay over a long period of time with relatively small payments. A person may need a larger lump sum of money to use for a down payment on a house. If that is what is needed, there are companies out there that specialize in paying a lump sum of cash for your income stream or annuity.

There are a couple of things to keep in mind when selling an annuity or other structured settlement. When an investor wants to buy your income stream, he is willing to give you cash which is less than the value of the total payments you are to receive over the life of the annuity. In other words, the total payments are discounted to what they are worth today by using the required rate of return, or interest rate, by the investor. This can be viewed as the interest rate it would take the lump sum to be invested at to get to the total of the payments at the end of the annuity.

You must realize that selling an annuity is a fairly complex legal process, not like selling a stock, and it can take up to 10 weeks to complete the transaction. There are rules and regulations surrounding the transfer of payments, and would be near impossible to transact without proper legal support. Choosing the right company to handle it is high on the priority list.

Another thing to do is to decide how much of the income stream you wish to sell. In most cases, you can choose to sell all or only part of your annuity. You may only need enough to buy a car, so the payments you agree to sell are transferred to the buyer and then the remainder revert back to you. Again, using an expert in this field would be wise.

Lastly, you should shop around for the best deal. Remember, when selling an annuity, a high interest rate to be used as the discount rate is worse than a lower rate. Essentially this is the rate of return the investor requires. The less he requires, the more money you receive in your lump sum distribution. Search on reputation, discount rate, and fees and

Cash For Structured Settlement Payments - Get Your Money When You Want It

2008-06-25T00:46:00.003-07:00

In the structured settlement industry not every company is the same. If you are in need of cash for structure settlement payments, then you need to know what you are going to be dealing with to get your cash.

There are companies that will directly purchase your structured settlement payment rights and give you cash right up front. There are also companies that will use a broker to purchase and, then, resell your structured settlement for a profit. The biggest problem with a company that uses a broker is that the fees tend to be higher and you might not get as much out of them as you could out of a direct purchaser.

Structured settlement companies should have to fully disclose how they do business in advance, but it is not required by law so they usually do not. This means that you have to do your research and make sure you are getting the best deal possible for your structured settlement payments.

You will want to shop around just like you would with anything else that is a large decision. There is no reason to short yourself, since it is your cash that we are talking about and you probably want to get as much out of your structured settlement payments as you possibly can.

Getting cash for structured settlement payments is not difficult, but you have to make sure you make the right decision. Find yourself 3 to 5 different companies that are willing to purchase your structured settlement. Then, get a quote on how much they are willing to give you from each company.

Once you have gathered all of your quotes, compare them, find the best one, and fax a copy of it to the other companies. Make sure you factor in the fees you will have to pay and anything else that could change the size of your cash payout.

Now you will wait to see if any of the other companies will make a counter offer and, in a matter of speaking, out bid the highest bid on your settlement. If one of the companies does, then you take that back to the original company that had the highest offer and see if they will give you a counter offer.

Once you have done this you will be able to find out which company is willing to give you the most cash for structured settlement payments that you own. This will ensure that you get the most out of your settlement and you will be happy that you shopped around.

Buyers of Structured Settlements - Get Your Cash Sooner

2008-06-25T00:46:00.001-07:00

If you are looking for a sound investment, then maybe buying a structured settlement is the way to go, and if you own a structured settlement, then you might be looking for buyers of structured settlements. If you decide to buy one, then you always have the option to sell part or all of it and that is the same if you are the owner of a structured settlement. You can sell the entire settlement for cash up front or just sell part of it as well.

There are usually a few reasons why someone would want to sell part of their settlement. These could be health related issues, legal emergencies, or another large financial emergency. Some people just want to have their cash up front so they can invest it and do as they please with it. If it is a personal injury settlement, then the whole idea is to provide you with enough money to cover your living costs and medical bills with each payment you receive from your settlement.

If your considering purchasing a structured settlement as an investment, then you need to make sure you consult a lawyer before you move forward with any contracts. You can also contact a broker, who will be able to guide the transaction in the right direction and make a few recommendations along the way. Buyers of structured settlements need to be careful regarding the different offers that are out there. The broker can provide the buyer with the information they will need to make a good decision and to ensure they are purchasing the structured settlement they want.

You will need to consider how long the payments will be made and if you plan to keep them or resell them for a profit. Buying a structured settlement can be a great investment, but you need to know how to do it correctly. If you plan to keep the settlement payments and the period of time that you will receive them is quite long, then you will want to get an option to add a beneficiary and name one of your children or a younger relative as the beneficiary. This means that if you die, they would receive the payments.

Whether you are searching for buyers of structured settlements or are considering becoming a buyer of structured settlements you need to take your time, be careful, and make sure you are getting the deal that is best for you in the long run and in the short run.

Structured Settlements - Have Your Cake and Eat it Too

2008-06-21T00:46:00.001-07:00

Is there really such a thing as a good problem? Some might say so. My aunt comes to mind. Back in the 1980s she won two million dollars in the lottery. How could that be any kind of problem you ask. Well, when the lottery people asked her if she wanted the money all at once or in monthly payments over 20 years, she took the payments, and regretted it right up until she got the last one.

I don't know exactly how much she got every month but she claimed it wasn't enough to live on so she had to keep her job. In hindsight, what she would have rather done was take the lump sum, which would have been less than the whole two million, and invested it. That way, by wisely placing part or all of the money in a high-yield investment, she could have had monthly income that far exceeded what the lottery folks were paying each month. So much for hindsight.

What she ended up learning, though it was too late to be of any use, is that she could have sold her winnings and received a lump sum of cash. How does this work? Well, there are companies and investors who are willing to buy income streams or payments. Monthly lottery payments qualify for this as do private mortgage note payments, annuity payments, structured settlements, royalties and several other types of steady payment streams. What happens is, based on the type of payments one might be receiving, an investor or company dealing in purchasing such assets will examine the type of payment a person is getting and make them an offer on the remaining payments.

Just like any state lottery commission, investors don't pay the full face value for these payments. Sometimes the reasons may not seem logical but the simple answer is, a lump sum today, even when discounted, is more valuable than the promise of a stream of future payments. I'm reminded of the old saying, "a bird in the hand..."

But many of the companies offering such a service are quite creative. They are able to offer more than one way to receive money up front and at the same time, still leave the seller with some of their payments. There are arrangements where such a company would pay cash up front in exchange for a portion of the payment. It might work like this: Sally is receiving payments of $600 monthly for 10 years on an accident settlement. She wants cash today. In exchange for a cash payment now, she evenly splits her monthly payment with an investor. So, she gets a lump sum of cash today and continues to receive $300 for the next ten years.

Another possibility would be that someone holding an annuity or receiving payments on a private mortgage note might assign his or her rights to receive, say, the next five years of payments in exchange for a lump sum today. After the five years has passed, the individual would revert to collecting his monthly payments.

There are many ways to structure such transactions depending on the needs of both the asset holder and the asset investor. Often the asset holder can have the best of both worlds. That is, they get to receive a lump sum up front while preserving the right to resume collecting payments in the future or receiving partial payments for the remainder of the term - like having your cake and eating it too.

Tips and Considerations Regarding a Viatical Settlement

2008-06-13T00:46:00.001-07:00

People alive with a terminal illness often face tough financial problems. A viatical settlement is an option that can provide you cash to help with expenses. It is the sale of a life insurance policy to a third party. The holder of the policy sells it for a percent of the death benefit. The buyer pays all future premiums and collects the full death benefit when the insured dies.

In a similar way, a life settlement will provide a striking option for a healthy policyholder who no longer wishes to pay the premium on a policy, and wants to get more money than the surrender value of that policy. In a life settlement, the insured is re-underwritten, and any offer made for the policy based on their current life expectancy. This can be more than the surrender value. Before you go into any viatical or life settlement transaction, you should:

Contact your insurance agent for information about settlements.

Consult your financial advisor, who knows about your personal financial needs.

Contact with your state insurance department for information about current laws.

Judge all your options

Find whether you have any cash value in your insurance policy. You may use some of the cash value to meet your immediate needs and keeping your policy in force for sometime.

Find out whether life insurance policies have an accelerated death benefits provision. It pays you a substantial portion of your policy's death benefit.

Other considerations

Contact a professional tax advisor to find out the tax implications. Not all proceedings are tax-free.

First know that the proceeds are subject to the claims of any creditors.

Find out whether receipt of a cash settlement would cause you to drop any public assistance benefits like food stamps or Medicaid.

Know that you should provide certain medical and personal information.

Consumer tips

Know how the process will work and when the phases will happen.

Make a decision whether to sell your policy directly to a life or viatical settlement provider or go through a settlement broker who would do the comparison shopping for you.

If you are using a settlement broker, comparison shops on your own.

You need not have to accept any life or viatical settlement offer

Check all application forms for correctness, especially information about your medical history.

You should be honest in your answers to application questions.

Also be sure that the giver agrees to put your settlement proceeds in escrow with a financial institution to make sure that your funds are safe during the transfer.

Find out whether you have the right to change your mind about the settlement after you obtain the proceeds. If you have you should return the money you were paid and also the premiums the buyer paid. Try to understand what information a buyer should know about you to buy your policy, and who else might get that information, before you offer the information.

Sell Annuity Payments Quickly, For Top Dollar, With No Hassles

2008-06-12T00:47:00.001-07:00

What is a Structured Settlement Annuity?A structured settlement is an arrangement for periodic payment of compensation for injuries or sickness. An annuity is a payment of a fixed sum of money at regular intervals of time. Therefore a structured settlement agreement may sometimes be referred to as structured settlement annuity. The payments are usually paid by an insurance company as a result of a personal injury lawsuit.

The settling accident victim is often given a choice between a lump sum (for example $100,000) or a series of future payments (e.g. $1,000 per month for 240 months). The use of structured settlements has grown in popularity over the last 15 years as insurers have aggressively marketed them as a cost effective settlement tool. They are often very useful as settlement tools, however they suffer from one very serious drawback - inflexibility.

How Can I Sell My Annuity Payments?Several years into a structured settlement payout, a victim's life circumstances will have changed such that they need or desire a lump sum of cash. Settlement Purchasers provide a cash for structured settlements by re-financing a portion of the future payment in order to give the accident victim the lump sum they desire now.

If you are in a pending lawsuit that has not been settled, you may want to consider a lawsuit loan or lawsuit cash advance.

Lawsuit Loan, Lawsuit Funding, Lawsuit Cash Advance, Litigation Financing

If you are involved in a personal injury lawsuit or claim, it may take months, or even years to receive a settlement. Lawsuit Loans, Lawsuit Funding, Lawsuit Cash Advance, Litigation Financing provides cash to the plaintiff in a personal injury lawsuit prior to settlement. The funds are re-paid from the proceeds of the lawsuit settlement. Unlike personal loans there is no credit check and no employment verification required. These types of financial arrangements are non-recourse cash advances based on the merits of the case. The cash advance does not have to be paid back if the client loses the lawsuit.

Credit Card Debt Settlement Agencies Exposed

2008-06-10T00:46:00.001-07:00

Are you considering taking up the services of credit card debt settlement agencies? Read this article to find out the truth about them before taking up their offer.You will discover seven important facts that will get you to thinking right

Fact One:

Credit card debt settlement agencies are increasing in number and with the increase in services, there is still a sharp increase in credit card debts.Why is this so? Are these services really solving the debt settlement problem after all?

Fact Two:

They are generally known by promising to cut your credit card payments by half if you can order their services or they even promise to settle your debt for only a small portion of what you owe - without you ever filing bankruptcy. Is this really so?

Fact Three:

They lure their unsuspecting customers to stop paying their monthly minimum credit card payments to the credit card companies.Instead, they encourage them to pay that money to them so that they can leave it to accumulate in their account. When this happens, they promise to now use the accumulated amounts to settle the debts.

Fact Four:

The credit card settlement agencies almost do not tell their victims that 25% - 50% of the accumulated amounts will be sliced off as fees for their services.This is actually how they make their money.

Fact Five:

Most credit card debt settlement agencies normally make there customers to agree to the fact that any accumulated money with them is non refundable. What this means is that even when you decide not to continue with them later, you cannot get your money back.

Fact Six:

If and when the debt settlement agencies finally makes the necessary payment,an income tax usually must be paid on the amount of the debt forgiven. For instance, if you owe $100,000; and they accumulate $50,000 on your behalf, you must pay income tax on the $50,000 accumulated for you. Have you seen the catch?

Fact Seven:

You can definitely do anything the so called credit card debt settlement agencies are doing. You can settle your debts yourself. All it takes is taking some measures and considering many other options. They are available everywhere. Most of them will come from within you. We have covered major facts about credit card debt settlement agencies. The choice is yours whether you still want to go that route.If you do not want to go that route, why not find out more information about settling your debts from here.

Three Things Everyone Should Know About Life Settlements

2008-06-07T00:46:00.001-07:00

Life settlements have a variety of great benefits for many policyholders, however, the fine print and complicated rules can make the entire process a stressful experience. With some basic information and proficient, expert help, it does not have to be that way. To make the entire process a successful venture, there are three things that every policy-owner should know.

Life Settlements VS Viatical Settlements

Although these two terms seem identical at first glance, there is a significant difference between the two settlements. When the owner of a life insurance policy is extremely ill and decides to sell their policy, it is referred to as a viatical settlement. When this occurs, the death benefit from the policy is paid to the settlement company after the owner has passed away.

So long as there are no particular restrictions placed on them by the state, life settlements occur when the owner of the policy sells the policy for any other reasons beside an illness or the quick approach of death. Some choose to sell the policy rather than losing it by falling behind on payments while others use it as a source of cash for a variety of reasons including the desire to live a different lifestyle, gifts, or the acquisition of life goals.

Life Settlements Are Negotiable

The amount of money paid out for life settlements is completely negotiable and depends on the agreement that is made. Generally speaking, the health, age, amount of the benefit, and type of policy will determine the amount of payout that is offered. This is what makes shopping around a vital component to a successful settlement. Today, life settlement brokers will often take the work out of it by doing the shopping themselves; they will search through a list of funders to find the best offer. There will also be some form of fee or commission charged by the broker in exchange for his or her service. Regardless of the amount of the offer, there is never an obligation to accept it.

What Happens Afterwards

Once the transaction is complete, the ownership and beneficiary changes hands and the funder will be responsible to pay the premiums. Any possible taxation that may occur with a settlement payout is the responsibility of the original policy-owner. In general, however, the amount of the original investment is not taxed, but it is taxed up to the cash surrender value. Anything over that amount is often subject to capital gains tax. The settlement company may also contact the insured individual in the future to find out about his or her current health status.

In some states such as New York, there are no regulations set in place to monitor or control life settlements. In fact, agents do not require certification or training in some cases making the choice of a reliable institution extremely important. Understanding the process and choosing reliable and expert help is the best way to make the experience a smooth and easy transaction.

Please note that IFG Insurance is not offering legal or tax advice. Any discussion of taxes included in or related to this document is for general informational purposes only. Current tax law is subject to interpretation and legislative changes. You should consult with your legal and tax advisors.

Structured Settlements Info

2008-06-03T00:46:00.001-07:00

How a structured settlement annuity works.

A Structured Settlement is essentially an agreement under which an insurance company agrees to pay an individual a predetermined amount of cash for a fixed length of time if the individual meets an accident. The documents generated in a structured settlement include an agreement, a qualified assignment, an annuity application, a court order if a claim is made by a minor, and an annuity policy.

Payments for a structured settlement annuity can be made for the duration of the life of the claimant. The amount paid can comprise of equal installments, installments of varying amounts, and lump sums. The payments from a Structured Settlement Annuity are free from income-tax and are guaranteed by contract. Since a structured settlement annuity is meant for long-term financial security, it is important to get an assurance of the credentials of the annuity provider.

The periodicity of payment is entered into the settlement agreement. Factors that individuals can consider in deciding upon the date of commencement of payment, duration, and periodicity include monthly expenses, present age, extent of hazard in occupation, and retirement plans. In order to ensure that the payments remain tax-free, the structure of payments should not be altered once it has been agreed upon by both parties. In the case of a qualified assignment, the insurance company making the payment can transfer its obligation for payments to a third party.

There are issues that one should understand before opting for a structured settlement agreement. If payments are made to an estate, they are free from income tax but subject to estate tax. Purchasing a structured annuity can affect the availability of ready money with an individual.

State and federal laws govern the closing of a structured settlement. The closing process usually gets completed in 3-6 months. Federal laws stipulate that a court order be obtained by either the customer or the funding company that is purchasing the payment stream so that there are no tax liabilities. The manner in which the court order is obtained is regulated by various "Structured Settlement Protection Acts", which are in force in 36 states in the United States.

A disclosure statement is made available to a customer 3 to 14 days before he receives the transfer agreement. The disclosure statement mentions the amounts to be paid to the customer and their due dates; the IRS Discounted Present Value of the amount at that given point in time; the Gross Advance Amount and the Annual Discount Rate; disclosures desired by the state; and a list of the fees and commissions incurred.

It is advisable to avail attorney advice before going in for a. In fact, in some states, it is a precondition to acquiring a structured settlement annuity. However, depending upon the laws being used for the transaction, customers do have the option of waiving legal representation in the Transfer Agreement or obtain an Estoppel letter from their attorney.

The funding company commences payment to an individual after acknowledging the assignment and receiving a court order. The payments start 30-45 days after the receipt of the court order.

Selling Structured Settlements

2008-05-24T00:47:00.003-07:00

Were you awarded a settlement in a lawsuit or in a case that never made it to court? If so, you might want to cash it out for one lump sum of money. Some structured settlements can be paid out over as many as 30 years and that can be very inconvenient if you need the money now. Selling structured settlements is not difficult anymore, but you do have to know how to get the most out of it. Here is a little advice to help you get top dollar for your settlement.

First, never accept the first offer. Shop it around with at least two other companies that will buy settlements. This will ensure that you get the top bid and get more value out of your legal settlement. It is kind of like an auction since you will be taking a bid from one company and telling another that they have been outbid. Do this until one company backs down, then accept the final offer from the company with the highest bid.

Second, make sure you start by consulting your attorney to find out what your tax ramifications are going to be if you sell all or part of your settlement. This will also give you peace of mind to know that someone is there watching over your shoulder to make sure you make the right decisions and don't get a raw deal.

Last, check the references of the company you choose. Also, check the better business bureau to make sure there are not complaints against them. It is necessary to make this transaction with a very reputable company so check them out thoroughly to give yourself peace of mind.

You can cash out your settlement by following these tips on selling structured settlements. Use the lump sum to pay off medical bills, debts, your home, or to invest for a rainy day. It is your settlement so if you decide to sell it make sure it is your decision to do so and not someone else talking you into it.

How To Sell A Structured Settlement

2008-05-24T00:47:00.001-07:00

Have you received a legal settlement that is structured to be paid to you over a number of years? Do you want to cash out early and get one lump sum of money? Maybe you just want to sell part of your structured settlement. Either way you need to know how to sell a structured settlement correctly. Here are a few tips to help you out.

First, you need to understand that you will be looking for specialty finance groups. These are usually the ones that will be willing to purchase a legal settlement from you. They are usually groups of lawyers, doctors, and investors that are willing to pay a lump sum for a settlement that might extend over 20 or 30 years in time.

Next, you need to research the company you choose to get an offer from. Make sure they have testimonials from past clients and have a strong reputation. You can even ask your attorney if the company is reputable. Also check the better business bureau just to be sure. You don't want to be dealing with a shady company so make sure you do your research and check everything out.

Last, shop your offer around. Get offers from at least three different companies. This will give you a better chance of getting more value out of your settlement. You can also let the lesser offers know that they have been outbid to see if they will raise their offer.

If you need to know how to sell a structured settlement you can always consult an attorney, but these tips should help you quite a bit in your transaction. Make sure you find a good and reputable company, get an offer from multiple companies, and shop the offer around to get the most value for your settlement.

What Is A Structured Settlement?

2008-05-23T00:48:00.001-07:00

Have you been offered a settlement in your court case and are unsure if you should accept it or not? Do you know all the facts about settlements? Do you know the answer to, What is a structured settlement? Here is the answer to that question and some advice on what to do if your case is being settled.

First, a structured settlement is a legal payment rendered to you in payments. Instead of getting one large sum of money you would receive a portion of the settlement each year in an annual payment or sometimes in a monthly payment. For example, if you settled for $500,000, then it might get spread across 20 years which would give you $25,000 each year. This can be beneficial or it can be very hard on someone.

If you have been injured and you have more than the first payment amount in medical bills already, then it can be very stressful to think that you have to wait for money that is rightfully yours. There are options though.

If you have received a structured settlement, but you need a lump sum to pay off some debts or medical bills, then you can sell all or part of your settlement for a portion of the amount you agreed upon. You can usually cash out for about 50% - 75% of the amount you are supposed to receive over a period of time.

Sometimes it is smart to cash out a portion of your settlement so that you can clear your debts or pay off your medical expenses. If you are unsure of how to sell your settlement you should discuss this with your attorney because they will be able to give you some great advice on how the process will work and what you should do. Also, they can point you in the right direction with your search for a company that will purchase your settlement.

Now you know the answer to, What is a structured settlement?, and you also have some good advice on how to cash out your settlement. Just make sure you do what is going to be best for you for now and the future and don't allow anybody to talk you into something that is not good for you.

Get Money For Structured Settlement

2008-05-23T00:47:00.003-07:00

Did you receive a structured settlement for a personal injury or another legal battle? Are you tired of waiting on your money each month and are you ready just to have one lump sum for your settlement? Get money for your structured settlement by selling it to an investor. This is an easy way to cash out and do what you want to do with your money. Here are a few tips to help you get money for structured settlement.

First, you need to find a group of specialty investors that buy settlements. These groups are usually very wealthy individuals that will offer you a portion of the total settlement to buy the entire amount. This benefits them and it can benefit you. Sure you won't get as much money, in the long run, as if you just took the annual payments, but you will have one lump sum that you can invest, use to pay off medical bills, or use for any other reason you might need it for.

Second, research your company and make sure they have a strong reputation. They will have testimonials from past clients that have been in a similar situation. Make sure they have give the company you choose a raving review. This will give you peace of mind to know that you are getting a good deal.

Last, have a lawyer look over all the paper work to ensure that you are entering into the right type of agreement. The last thing you want is to be scammed out of your money so use this safeguard to ensure that the documents are drawn up correctly and you are going to get what was agreed upon.

Follow these steps to get money for structured settlement. You will be able to cash out and use the lump sum for whatever your needs or wants are. If you plan to invest all or some of it make sure to consult a professional for advice on this matter.

Structured Settlement - Get Cash For Your Structured Settlement Now

2008-05-23T00:47:00.001-07:00

If you have received a legal settlement, and you want to sell it, then you need to know what it takes to sell a structured settlement. There are many reasons why you might want to sell your settlement payments. Maybe you have college tuition to pay, medical bills, debt to pay off, or mortgage payments due. The main reason someone would sell their settlement is to have the flexibility of using it however they want and when they want.

Most consumers have no idea what kind of options they have when it comes to selling their settlement. What should you be asking for? Is the company you choose reliable? Is it possible to sell just part of your settlement? Here are 4 tips to help you with selling your settlement.

First, search for specialty finance companies. They are the ones that usually will purchase a structured settlement. You will want to view their testimonials and do some research to find out if they are reputable and worth doing business with.

Second, you should never accept the first offer that is given to you. You should browse many different companies to make sure you get the most out of your settlement. This will give you a better value for what you are selling.

Third, you need to take a look at your budget and decide whether it will benefit you more to sell all or just a portion of your settlement. Many companies will buy just a portion of your settlement and if you don't need it all right now, then this might be the right way for you to go.

Fourth, when it comes down to the contract you should consult an attorney to look things over. This will ensure that you are getting what you are after.

You will want to make sure the company you choose is very reputable and has a well known name. Structured settlement purchasing has become a larger business than in years past and you need to make sure that you get the deal you are looking for. If you have any doubts about the company that you are dealing with you should consult your attorney.

Don't Accept Annuity Quotes That Violate State Insurance Rules

2008-05-22T00:45:00.001-07:00

The authority of the insurance commissioner (or possibly another title) to regulate insurance business conducted within the individual states is contained in a title of state statutes usually known as the Insurance Code. There are usually corresponding rules also published to amplify the statutes. Insurance rules are often patterned after model language developed by the National Association of Insurance Commissioners, but they vary widely. Look for rules similar to those used below to illustrate the types of abuses that are common.

Rule: An "advertisement" includes illustrations originated by the insurer, its insurance producers or third parties.

Rule: Advertisements must contain complete information and not omit material information to be misleading or deceiving purchasers as to the extent of any benefit payable or any premium payable.

Rule: The premium shall also be shown on the annuity contract itself, according to the form filed with the Insurance Department. The name of the annuity issuer shall be clearly identified in all advertisements.

Rule: The prospective annuitant must not be misled into believing that he or she will receive some benefit not available to other persons of equal life expectancy.

Settlement offers frequently include cash components to be paid at the time of settlement plus "periodic payments" that will be funded through the purchase of an annuity. Illustration ledgers or "advertisements" presented to show the future payments being offered, but omitting the name of the proposed annuity issuer and the amount of premium required (the cost of the annuity), violate state insurance rules. When this happens, the claimant may not learn the identity of the company that will make those payments, including its strength and performance ratings by independent analysts, until after the offer is accepted.

After the terms of the settlement are agreed to by the parties, including the future payments to be made based on representations made to the claimant of their cost, the defense structured settlement broker sometimes will "shop" among several annuity issuers. If the same benefits can be purchased for less premium dollars from another company, or if the company quoted during the settlement negotiations subsequently offers a better rate, the annuity is purchased for less than represented during the negotiations. The savings are then retained by the defendant or its liability insurer and not passed on to the claimant in the form of higher future benefits or a larger cash amount paid at the time of settlement.

Unknown to the prospective annuitant, the life insurance companies will assign a "rated age" based on the assumption that the "measuring life" (annuitant) has an impaired life expectancy due to his or her overall health history. Rated ages are assigned by life insurance company medical underwriters based on medical history submitted by the structured settlement broker, often in violation of privacy regulations under the federal Health Insurance Portability and Accountability Act (HIPAA). The claimant has no idea that the lifetime benefits in the settlement proposal were based on a presumed shorter life expectancy and obtained at less cost than to provide identical payments to someone with a normal life expectancy.

If neither the claimant nor the claimant's attorney is shown the cost of the annuity, in writing, the defense's purpose very likely is to deceive the claimant into believing that the present value of the periodic payments is higher than it will actual cost.

Some life insurance companies that issue annuities designed and priced specifically for structured settlements issue computer software quoting systems to their agents that have options for a "plaintiff version," omitting the cost and often the name of the annuity issuer, and a "defendant version," which shows all relevant information. The use of the "plaintiff version" annuity illustration is a product of long-standing practice developed by liability insurers that serves no justifiable purpose and violates state insurance rules.

The plaintiff's counsel should require that all future payment proposals made as a part of a settlement offer, where an annuity will serve as the funding asset, identify the name of the annuity issuer, the name and business address of the producer or insurer's authorized representative (who must be licensed to sell annuities in the state), the premium required to produce the future payments illustrated, and the mortality risk assumption (whether a rated age is being considered). The illustration should also show the funding date assumption and the rate series in effect, including any daily rate, along with the quote's expiration date.

The annuity contract, which is usually issued several weeks after the settlement, should reflect the actual premium paid, as specified on the approved policy form declaration page, not simply "valuable consideration" or "paid in full." In this way, the attorney or the annuitant can compare the actual cost with the cost represented in the settlement offer. Any significant discrepancy should be dealt with immediately.

It is not enough simply for the defendant or insurer to fulfill its promise of making periodic payments, the defense must also spend what it said it would spend to provide those payments.

The plaintiff's attorney can also be held accountable if the client is victimized by the defense.

Your best defense against such tactics is to engage your own structured settlement specialist to advise on periodic payment costs before mediation, then insist that all settlement discussions be conducted in terms of a single cash lump sum. If agreement is reached as to an amount the defense will spend to settle, you can direct that amount to be paid into a qualified settlement fund and call on your own specialist with a duty of loyalty to your client to set up the periodic payments. All tax benefits of a structured settlement are preserved when a qualified settlement fund is used for receiving settlement proceeds.

You Really CAN'T Get Your Money Now!

2008-05-16T00:46:00.001-07:00

You've seen the commercials. That distinguished gray-haired gentleman talking about how it's your money - use it when you want - and telling you that their company can get you your money today!

Today? Really?

Don't bet on it.

We're talking about Structured Settlements now and the ads and commercials running about them are, in my opinion, quite misleading. So much so that it makes me want to pull my hair out.

Why? Well, the fact is that NO ONE can get you your money NOW for selling your structured settlement payments, and here's why.

The selling of structured settlement payments is complicated, and there are federal laws that dictate what has to happen to accomplish this. These laws were developed by the insurance industry and NASSP (the National Association of Structured Settlement Purchasers), and was designed to protect structured settlement recipients. In a nutshell, it says that anyone wishing to purchase a structured settlement payment MUST obtain a court order. This requirement was put into place so that the court would act as a safety net, reviewing the terms of the purchase agreement and making sure that the annuitant is protected.

It's a good thing!

The downside to this legislation is that it adds time to the transaction. When an annuitant decides he wishes to sell his payments, he gets quotes, chooses a company to work with, and signs a contract to facilitate the sale. However, from there the buyer of those payments has to hire an attorney. That attorney needs to file papers with the court, request a hearing date, and then serve the insurance company with notification of their intent and the date / time of the hearing. The insurance company is entitled to so many days notice. Likewise, the court docket can be heavy and getting a court date could take many weeks. So you see, it takes a lot of work and time to get these transactions before a judge.

Here at Integrity, we tell people right up front that the sale of their structured settlement payments will take at least 2 months, and sometimes longer. We think it's important for you to know the truth, so that you can plan accordingly.

For many people, waiting 2+ months to get their money is acceptable. They want to use their money to:

* Buy A Better Car

* Pay Off High Interest Debt

* Purchase A Home

* Pay College Tuition

* Start A Business.

Those are all great reasons to sell some of your payments. However, if you need money for closing costs on a home, or to pay your child's tuition bill which is due in 3 weeks, this won't work for you. And you need to know that!

Why Then Do Companies Lie?

Often times people call me in a panic. They signed on with a certain structured settlement purchasing company and were told they could get their transaction done in 3 - 4 weeks. Sometimes they tell you that they have a "special" relationship with the insurance company. Don't you believe it!

This is just a ploy to get you to sign. In reality, no one can do this any faster then anyone else. We all have to follow the same rules. So let's just be honest about it!

Note: These rules and the court order requirement is for structured settlements only. Presettlement funding and law suit advances are a different animal altogether. In these cases, it is often possible to get cash within just a few days.

Structured Settlements - Overview of Annuity Payments and How They Work

2008-04-23T02:47:00.001-07:00

Structured settlements are a financial arrangement oftentimes used when an individual is awarded a large sum of money. This might stem from monetary awards used to compensate a person who has been seriously injured or from lottery jackpot winnings. Structured settlements are oftentimes used in cases involving automobile or workplace injuries, medical malpractice and injuries sustained due to the negligence of another.

There are several types of structured settlements with each being designed to suit the individual's financial needs. Typically, they are offered when damages exceed $10,000. In the case of a minor child, damages must exceed $5,000. Annuity payments are paid to the recipient (Annuitant) over a specific period of time.

Depending on the circumstances and amount of monetary award, Annuitant's might receive payments over the course of 10 to 20 years or for their entire lifetime. Much depends on the type and duration of medical care required, as well as living expenses.

Structured settlements are also arranged to compensate individual's who win jackpot lotteries. For instance, if someone wins $5 million, they can elect to take a lump sum payment or receive the money over a period of years. By accepting a lump sum payment, they will receive a lesser amount than if they elect to accept a structured settlement.

Similar to Certificate of Deposits (CDs) sold by banks, structured settlements are backed by an annuity held by a life insurance company. Annuities are invested to expand the Annuitant's financial portfolio. When annuity payments are paid as a result of injury or negligence, they are tax free. When they are paid for lottery winnings, they might be subject to taxation of both state and federal levels. Additionally, investment proceeds are subject to both state and federal taxes.

When structured settlements are paid for a specific period of time, they are referred to as "Designated Period" or "Period Certain Annuities." The Annuitant receives a set amount of money at a specific time for a certain number of years. Should the Annuitant die before the structured settlement is paid in full, the balance will be paid to a designated beneficiary.

In cases where annuity payments are paid for life, they are referred to as Life Annuity structured settlements. It's important to note that "life" may actually refer to a certain number of years based on the Annuitant's life expectancy. Also known as "Period Certain", this type of structured settlement allows the Annuitant to name a beneficiary. If the recipient dies prior to the number of designated years, the beneficiary will receive the remaining payments.

Lump Sum structured settlements provide a lump sum payment at a future date. This type of arrangement is well-suited for minor children, as it can provide for future educational expenses. Two types of lump sum are available -- "Lump Sum" and "Life Contingent Lump Sum." The first allows transfer of the annuity to a designated beneficiary, while the second does not.

Life Annuities structured settlements pay monthly annuities for life. There are two types of life annuities -- "Life Only" and "Joint Survivor." The first offers no provision for assigning a beneficiary, while the second will pay the beneficiary for the remainder of their life.

Last, but least, is Temporary Life Annuity structured settlement which pays regular payments for a specific number of years. There is no beneficiary provision and the annuity ends when the recipient dies.

The Time Value of Money in Structured Settlement Factoring Transactions

2008-04-15T02:45:00.001-07:00

Knowing something about at least the basic principles of investing is fundamentally important if you plan on getting into that game. Just as you wouldn't buy a house without getting all the information on the structure and costs, or a car without 'kicking the tires', anyone who wants to invest their money either in the stocks or annuities should get to know a few basic terms and what they mean, the Time Value of Money is one of these.

In a nutshell, the concept behind it goes like this: We all know that having an something right at the moment is better than getting the same thing down the road. It's better to have $50 dollars in your hand now than $50 dollars in your hand 3 years from now. Two things about this concept are important to understand. If you've got the money promised to you a 3 years from now, you've got to defer spending it for that time. Makes sense, right? It's not hard to understand that you can't spend what you don't have. But there's more.

You also miss the chance to make that money grow by investing it. This is a quick example of one of the big ideas behind investing-The Time Value of Money. The interest rates that we all hear so much about are the way that the macrocosm of a national or in some cases international economy determines the Time Value of Money. There are some other considerations that you'll need to have a look at as well to get a complete understanding of this idea. The next is what economists call the Present Value. This all may sound like a lot, but it's really just another simple concept.

Take that $50 dollar bill that we were using as an example. Simply put, the Present Value of that note is determined by the amount that you can earn today with it. If you've got that money in your hands, you can invest it or spend it, but right at the moment that it rests in you hands it's worth 50 bucks. That's easy. Now, we'll add a little something to the mix.

There's another idea that we should look at just so our whole treatment of the Time Value of Money is complete, and that's called, as you might have been able to guess, the Future Value. So let's have a look at what this means by taking our $50 dollar example again. The value we just discussed is of course the amount that you can earn in the future and one of the things that determines that is the interest rate. This is the lynch pin that determines the Time Value of Money. You might be asking yourself why this is important-there's a simple reason for that too.

If the interest rates are low you might get more for your money in terms of value by spending it now. This is just one of the decisions that you'll need to make when you're thinking about investments of various kinds, including the ones that you want to make over the long and short term.

How Does This Relate to Structured Settlement Factoring?

Structured settlement factoring is based upon principals of time value of money. Is it better to wait years for your money, or to get your money now? The simple answer to this question is that it is better to wait for your money due to the discount rates applied to a structured settlement factoring transaction. The more complex answer is "why" do people need cash now for their future payments. Structured settlement factoring is setup for individuals who are in desperate need for money, not for individuals who have other options besides factoring their settlement payments.

It is always best to consult with a financial professional before cashing out a structured settlement or annuity policy. A financial professional will be able to help you find other options, if available, and if not available will be able to help you complete the process of factoring a structured settlement.