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Structured settlements are structured cash payments through an annuity system that is established to compensate injury victims for their losses. Structured settlements are also helpful with people who may have temporary or permanent disabilities, illegal death, serious injuries, or any other problem that results in the effect of the main wage earner of the household.

Structured settlements have not always been available. In 1982, Congress passed The Periodic Payment Settlement Act of 1982, which legally recognized structured settlement cases in physical injury cases, also encouraged people to use them by granting them tax-free status. This act allowed people to financially benefit and protect themselves from the dangers of a lump sum settlement meaning money that serves as a complete payment, and gave courts the ability to make such an award where there was a realistic potential for abuse of the proceeds of a lawsuit. The structured settlement is generally set up as some sort of an annuity that makes payments according to the prescribed and agreed upon schedule.

Structured settlements payments have been shown to offer a helpful, secure and guaranteed source of lifetime earnings to parties in personal injury or other cases.
Severe injury where there is long-term treatments and medical costs will necessarily be incurred, and to meet the family and living expenses. A person who has a temporary or permanent disability can Read more…

Structured settlements are the financial agreement between two or more parties that plaintiff compromise a statutory cyclic payment contract.

A structured settlement can protect a plaintiff from having settlement funds dissipated, when they are necessary to pay for future care or needs. Sometimes a structured settlement can help protect a plaintiff from himself – some people simply aren’t good with money, or can’t say no to relatives who want to “share the wealth”, and even a large settlement can be rapidly exhausted. Minors may benefit from a structured settlement as well, such as a settlement which provides for certain costs during their youth, an additional disbursement to pay for college or other educational expenses, and then one or more disbursements in adulthood.

Choosing the right specialty finance company to work with is an important decision, and many people do not know where to turn for advice.The SSA only works with the finest direct funding sources, weeding out expensive Read more…

Viaticum is the Eucharist given to a person on the verge of death, or to one who is facing a possibility of death. It is no wonder, then, that this Latin word would be the root of the term ? Viatical Settlement.

Viatical Settlement involves the sale of a life insurance policy to an investor. A Viatical settlement is usually carried out by the terminally ill ? those who face penury by the cost of maintenance alone, those who expect to live not longer than two years. That being said, a Viatical settlement is purely a financial transaction. The viator, the one selling the life insurance, sells the policy at a discounted price of the death benefit of the policy and is provided with immediate cash settlement. This usually helps in paying the medical bills of the aged person.

The investor is the buyer of the policy. The investor has two options. One is to sell the policy to a third-party, or to stash the policy as a company investment. Viatical settlements are especially attractive to investors and the rates of return, though not guaranteed, are potentially high. As with any kind of deal, risks are always present for both parties. For the Viator, the primary risk is settling for a low price. Of course, compared to the future premiums, the price would be lower, but there is still the danger of the policy being bought at a song.

For the investor, the risks are greater. There is the probability that the investor will not receive the full death benefit should unfortunate circumstances cause the insurance company to go bankrupt. There could also be the ghost of a chance that the Viator may have committed fraud Read more…

The answer to that question is difficult.
The question you might ask yourself: Do I need all the money now or just some?
You might want to sell off some payments and keep the rest or sell part of your payments and that way you can receive a reduced amount each month. There are many options to explore.

There are now laws in most state that will protect your structured settlement sale.
New law makes all structured settlement payment sales subject to a court order. If no court order, a tax equal to 40 percent will have to paid on the total amount of payments being sold. This is good, making selling your settlement safer.

When deciding whether to sell your structured settlement or not, you need to consider that your proceeds are put to good use.

For example: to pay for medcial expenses, to buy a house, Read more…

Every year there are numerous accidents in the United States. These often end in a lawsuit. These legal proceedings mostly result in cash reimbursements for the affected person. These payments are carried out by insurance companies and are popularly known as structured settlements. Cash for structured settlement payments is always distributed through long-term monthly installments.

Structured settlement payments are reimbursed over an extended time period. For this reason, monthly compensations are intended to meet various needs of the affected party. However, a booming economy and increased expenses always creates a need for more money. This prompts a number of people to sell their structured settlement payments for immediate cash.

When people decide to cash in on structured settlements, the money received in return is always at a discounted rate. In most cases, funding companies buy these settlements. This modus operandi is considered profitable for the buyer.

Exchanging structured settlements for cash is an established and accepted practice. Selling these does not entail risks of securing assets to obtain money. A number of people sell settlements as per their requirements. For instance, if there is an important short-term cash requirement, a part of Read more…

A structured settlement is a monetary grant that is often the result of a successful lawsuit. Often the lawsuit is in reference to an injury case, which results in an insurance agreement. This payment is financially planned to guard the settlement sum and to offer the beneficiary with safe returns. Often the receiver is incapable of work, restricted in work capacity or has endured loss in earnings due to work absence as a result of injury. The structured settlement, also known as an annuity settlement, offers the receiver a long-term, steady and tax-free income.

An annuity settlement or a structured settlement uses annuities as a mode of compensation. However they have a basic difference. A regular annuity is a result of an investment or retirement option, whereas a settlement is a result of an injury or insurance settlement.

To ensure an annuity settlement payment remains tax-free and protected for its tenure, a beneficiary cannot ask for payment augmentation or payment advances. At times this is a predicament incase the receiver needs quick cash or a large sum of money. In such scenarios one may search for an annuity buyer.

Through an Read more…

A structured settlement is made available as a compensation for accident victims. These payments are the result of court proceedings and are designed to cater to the medical and financial needs of the affected person. However, at times the offender and the victim may not have an idea about impending costs, which makes it difficult to decide upon a reimbursement amount. To analyze these costs, people need to have immense knowledge of medical expenses. Structured settlement brokers provide this analysis.

Expert structured settlement brokers are specialists who are able to provide approximate calculations of impending costs. These professionals are able to determine future medical expenditures. Their calculations include medical costs and increasing costs of living over the payout period of the structured settlement.

Approximations that structured settlement brokers determine are usually estimates. This is because medical developments are always evolving. Hence, the cost of future innovations cannot be determined. Nevertheless, these brokers and the offenders determine initial charges based upon these estimates. The payment plan can be decided before, during or after a trial. At times, structured settlement brokers assist attorneys if they are not well-versed with guidelines of these payments.

In order to provide services, structured settlement brokers need to obtain details about the victim. This could include information related to the employment and health records of Read more…

Structured Settlement Annuities have been shown to provide a valuable, safe and guaranteed source of lifetime income to parties in personal injury or other cases. Today we look at situations where these special annuities would be helpful.

Personal injury. This is obvious to most, but let’s take a closer look at situations that might warrant such settlements.

Temporary or permanent disability.
A structured settlement can help here by making sure the cost, if any, of rehabilitation is covered.

Guardianship of minors or persons with diminished mental capacity.
We’ve seen before how dangerous mismanagement of a lump sum settlement for a child can seriously impact the future care of the child. Guaranteeing that care for the injured child will be covered will add greatly to the overall quality of life for the caretaker and the child.

Wrongful death, particularly when the surviving spouse and / or children need steady income.
When tragedy strikes the main money earner of a household loss to a family is felt in many ways. In some cases this can cause financial ruin to a family. A structured settlement can help replace the monthly income lost and provide a family piece of mind that the rent, bills etc will be paid for.

Severe injuries, especially those that result in shortened life expectancy.
Once again, protecting the financial future of the family or caregivers to make sure Read more…

Need money in a hurry, than selling your structured settlement may not be the answer. It can take anywhere from six weeks to four months to get your money. Why you may ask?

A new safe guard has been put in place called a court order. A judge has to rule on if selling your structured settlement is in your best interest. If you don?t have a court order than a tax equal to 40 percent will have to be paid on the total amount of payments being sold. For example: to pay for medical expenses, to buy a house, pay for an education, a business opportunity or to keep from filing bankruptcy may be considered in your best interest.

When deciding whether to sell your structured settlement or not, you need to consider that your proceeds are put to good use or the court will not approve a court order giving you the money.

It is important to find an a ethical company that Read more…

Viatical settlement originated from the Latin word ?Viaticum?, meaning the Eucharist given by a priest to a dying person. Viatical settlement therefore refers to the purchase of the life insurance policy before the maturity date or the death of the policyholder. In it a lump sum amount is paid to the ill-policy owner, also called as viator, in exchange of the death benefits of the policy.

Generally those policy holders who are suffering from very serious diseases like AIDS, cancer, heart problem, kidney failure etc and who are having a very small life expectancy will choose viatical settlements with their life insurance policies. This cash life settlement reduces the financial stress of the policyholder during his/her final days. Generally cash life settlement companies purchases the insurance policies from the viators for a fixed percentage of the policy amount depending on the number of premiums paid hitherto and the health conditions of the policy owner. Then they make all the arrangements with the insurance companies requesting the change of ownership and beneficiary of the insurance policy. Once it has been done, the company pays the remaining premium amounts to the insurance company, and upon the demise of the old policyholder the company receives the full policy amount from the insurance company.

However the company has to face the risk involved if the viator survives even after the predicted life expectancy or if the insurance company undergoes bankruptcy. On the other hand, the risk for the viator is the settlement at lower price than the value of the policy. So risks are there for both the parties. If the company resells the policy to some other cash life settlement company, the old policyholder doesn?t hold any responsibility against the second buyer company. The policyholder can sell any type of insurance policy, term or group, under viatical settlement.

It will take almost four to five weeks for the policyholder to get offers for the purchase of the policy and up to three weeks to get the amount from the buyer. The viatical cash settlement companies purchase policies from those people having the Read more…