In civil cases, one party typically must pay a sum of money to atone for some wrong doing against the other party. Civil cases include personal injury lawsuits where a party is seeking money over a bodily damage, wrongful death where a family is amended through cash, and worker’s compensation for being injured on the job. Though many of these types of settlements end in lump sum pay outs, another option is a structured settlement. In a structured settlement, the at-fault party creates an annuity, agrees to pay the amount owed over a certain period of time, and creates a stream of income for the recipient. The payments can be all equal amounts, start high and end low, or can start low and end high, but are always tax free. In certain plans, if the receiver of the payment passes away, a beneficiary will continue to collect the payments for them. Other plans are Life Only and will not go to a beneficiary upon the receiver’s passing. There are many options to make the structured settlement fit the particular case.
Selling Structured Settlements
Since the terms of structured settlements are not negotiable once they have been set, to receive a lump sum payment, the decision to sell future payments can be made. Selling options include partial payments, the entirety of the annuity, and lump sums of the annuity. With partial and lump sum sales, only certain payments or amounts of the payments being made are sold, so the recipient of the settlement will eventually receive the premiums of the settlement again once those payments or amounts have been met. If the entirety of the annuity is sold, the investment will be completely empty and no payments will be received from it again. When the decision to sell has been made, a court date must be set and the court must approve the sale. This process, on average, can take anywhere from 45-60 days, and varies from state to state. Due to these circumstances, the decision to sell should be made well in advance of needing the cash. Selling a structured settlement may be beneficial if a large amount of cash is needed all at once. Buying or repairing a home, starting a business, investing in a retirement fund, or paying for school are all common reasons why someone would choose to sell. Reinvesting the money into areas such as these can lead to larger amounts of income over time. People, often times, choose to sell their annuities due to this reason.
Choosing a Structured Settlement Company
After deciding to sell a structured settlement, choosing a company that will help you receive the most money for settlement is very important. There are many companies out there that will help you sell, and some will be better than others depending on the unique situation, but there are some general guidelines that will aid in picking a company. When searching, find a company that legitimately values your time with them. If the representative for the company shows real interest in your case, then they are more likely to extend the most aid to get a judge’s approval on your sale. Getting quotes from the company is also something that should be taken into consideration. Your situation will not be helped if the company takes weeks or months to get you a quote. The company should also have a reputable history; if the company has won cases similar to yours before, then they have a better chance of getting your sale approved in court and getting the most cash possible for it. A company should never ask for you to put down false information when signing forms, or make you hurry to sign an agreement with them before fully understanding it. A company lying or giving untrue statements to you is a large red flag that they do not have your best interest in mind.
Today, there are three larger companies, JG Wentworth, Olive Branch Funding, and SenecaOne, that are highly reputable and have helped many customers with their case. Check this site for a full list of structured settlement companies and helps you choose the one you should sell your structured settlement for.
- JG Wentworth offers free quotes, a best price guarantee, signing bonuses, cash advances, and provides excellent customer service. They have helped thousands of customers over the past 20 years and is considered the purchaser of future structured settlements.
- Olive Branch Funding tailors a unique solution for each customer that approaches them. They offer an online document system that creates ease of access to needed forms as well as free online quotes. Olive Branch Funding also offers cash advances and is best for those who are in need of getting their funds fast. They often represent individuals who have won the lottery or some other sort of contest.
- SenecaOne is known for its customer service. They offer one-on-one services, reply quickly to questions, and offer no pressure sales tactics. SenecaOne offers a service that can provide a wire transfer or check for a cash advancement in as little as 24 hours. They also offer a prepaid MasterCard option rather than depositing the funds into a bank. SenecaOne separates their structured settlement cases from their lottery and contest winning cases. They have individual phone numbers for each type of case that caters to the individual needs.