Friday, September 28, 2007

Paying For Education By Selling A Structured Settlement

Filed under: Structured Settlements — Structured Settlement Expert @ 9:12 am

It’s no secret that higher education often does not come cheaply. Paying for a college education can mean the commitment of thousands of dollars – sometimes even hundreds of thousands of dollars depending upon the university in question and the number of children you will put through school. Coming up with such a substantial amount of money can be challenging to say the least; often homeowners will turn to home equity loans and others will rely on personal loans and financial aid to get through the process. For those who are receiving structured settlement payments as a result of a personal injury case, however, there is the option to sell future payments in exchange for a lump sum payout.

Structured settlements are designed for personal injury claimants to allow for ongoing financial needs. Rather than receiving one large payment, the claimant will receive ongoing, periodic payments from an annuity that is funded to support the lifetime of the settlement. Such payments may be adequate to meet the financial needs of the claimant for a time, but when particular financial circumstances arise – such as the desire to pay for a child’s education – such payments may no longer adequately meet the claimant’s needs.

With the sale of structured settlement payments, the claimant works with a buyout company that purchases all or part of the ongoing structured settlement payments in exchange for a lump sum payment to the claimant. Going forward, the buyout company receives the annuity payments instead of the claimant, who now has cash in hand to pay for tuition and other education-related expenses.

Popularity: 21% [?]

Thursday, September 27, 2007

Having Access To Your Money Now With A Structured Settlement

Filed under: Structured Settlements — Structured Settlement Expert @ 5:23 pm

With a structured settlement, a claimant receives a financial arrangement with payments spread out over a pre-determined amount of time. Rather than receiving a lump sum payment, an annuity is purchased to fund the settlement. The person who receives the structured settlement is then paid through the annuity according to the terms laid out by the settlement. Different payment terms apply to different settlements

At some time, a person who receives structured settlement payments may find that their financial circumstances have changed causing a need to have access to their money rather than continuing to receive payments through an annuity. Many reasons could change ones circumstances including mounting medical bills or the need to purchase a car. Regardless of the cause, a person who is receiving structured settlement payments may opt to sell their annuity payments and receive a lump sum payment instead. Claimants in this situation can choose to work with a company that buys structured settlements. They will purchase all or part of structured settlement payments. In return, the claimant will receive a lump sum payment. The settlement purchaser will then become the recipient of the ongoing purchased annuity payments and the client will have cash to tackle their financial needs.

Popularity: 21% [?]

Monday, September 24, 2007

The Definition of A Structured Settlement

Filed under: Structured Settlements — Structured Settlement Expert @ 10:25 am

Through the process of a personal injury case, two teams of attorneys typically represent the parties; one team represents the plaintiff who feels that their injuries were caused by the negligence of the other party, and the other team represents the defendant – the person or entity that denies any liability. Depending on the circumstances of the case the defendant may choose to offer the plaintiff a financial settlement as restitution for their injuries; this settlement can cover – among other things – medical bills, lost wages, damage to property, as well as pain and suffering.

In some cases, the settlement is made in a lump sum payment. But in many cases, if a financial award is made it is arranged as a structured settlement. In the simplest of terms, a structured settlement is a periodic payment plan. According to the specific terms of the structured settlement the claimant will receive payments at specific times through a third party annuity.

In some cases, the plaintiff – once they begin to receive the structured settlement payments – may find that the arrangement does not meet their current needs and that they would prefer a lump sum payment in order to meet financial obligations. In such a case, the plaintiff will often turn to a reputable company that buys structured settlements outright. In exchange for a lump sum payment on their structured settlement annuity, the plaintiff assigns all or part of the structured settlement annuity payment to the buyout company. The plaintiff is then able to have access to a lump sum to make appropriate decisions regarding their financial future.

Popularity: 23% [?]

Saturday, September 22, 2007

The Buyout Of A Structured Settlement

Filed under: Structured Settlements — Structured Settlement Expert @ 8:06 am

For those who are involved in a personal injury suit, there are several reasons why a claimant may prefer to settle a lawsuit and accept a structured settlement. A structured settlement provides periodic payments over time to the claimant while formally dismissing the case against the defendant. Structured settlements are often designed to allow for ongoing financial support for the injured party.

However, such payments do not come directly from the defendant. Instead, the defendant must contract with an independent third party that has experience in structured settlements. Most often, a life insurance company acts in this capacity, providing an annuity that will fund the life of the structured settlement. The claimant is then to be issued payments – monthly, quarterly, or even annually depending on what has been arranged – that are funded by the annuity.

But, in some cases, it becomes obvious to the claimant that the structured settlement does not meet their current financial needs. Perhaps they are finding that they are coming up short to pay medical bills. Or a financial situation has presented itself for which a lump sum of cash is needed. In these cases, the claimant may wish to sell some or all of their structured settlement.

In a structured settlement buyout, a third party buys all or part of your annuity from you, giving you an amount for the annuity upfront. Many who receive structured settlements find that the terms of a buyout are much more conducive to their financial situation, giving them freedom from relying on ongoing payments and allowing them to meet their financial needs head on.

Popularity: 23% [?]

Friday, September 21, 2007

The Benefits Of Selling Your Structured Settlement

Filed under: Structured Settlements — Structured Settlement Expert @ 2:14 pm

In a personal injury case, a case may be settled thru a lump sum payment or a structured settlement in exchange for dismissing the case and thus avoiding the time and expense of litigation. A structured settlement is in lieu of a lump sum payment and is defined by structured periodic payments made directly to the claimant that can be used for ongoing medical care and other costs associated with their injuries, or as the claimant otherwise sees fit. A plaintiff is often open to the terms of a structured settlement as it provides them with recurring payments over time.

However, the circumstances of a claimant may change causing them to need a lump sum over the periodic payments of their structured settlement. Ongoing payments may be financially limiting to them in terms of making decisions regarding how best to use their own money. For instance, a claimant – instead of receiving ongoing payments in amounts that offer little momentum in addressing there current needs – will choose to sell structured settlement payments and receive all or part of their money in a lump sum payment. Reputable buyout companies work with their clients in this capacity, giving them a lump sum cash payment in return for an assignment of some or all of their structured settlement annuity payments. The buyout company will begin to receive the payments from the annuity, and their client will have cash in hand.

With a lump sum of money at their disposal, claimants have buying power, as well as financial power to make decisions that can affect the rest of their life – such as starting their own business, eliminating debt, paying for education, or buying a home.

Popularity: 20% [?]

Thursday, September 20, 2007

Selling Your Structured Settlement

Filed under: Structured Settlements — Structured Settlement Expert @ 10:34 am

Structured settlements are payment arrangements to allow for periodic, rather than a lump sum, financial award to a personal injury claimant. Often, the terms of a structured settlement are arranged to meet the specific needs of a claimant. One injured party may require more money up front and should be able to comfortably work with annual payments while another may have ongoing medical needs related to their injuries that require more frequent payments, such as those payments made semi-annually, quarterly, or monthly.

When a structured settlement is created, the defendant agrees to work with an independent third party that will insure the financial arrangement - typically a life insurance company that is experienced in handling structured settlements. The defendant sets up an annuity that will fund the payments to the claimant.

Often, however, the claimant will realize that the annuity payments no longer meet their needs. At this point, they may choose to sell all or part of their structured settlement, in exchange for a lump sum cash payment. Luckily, there are those companies that will purchase structured settlements, giving the claimant a lump sum amount, and then taking over the role of receiving payments from the annuity.

When selling your structured settlement, it is important to look for reputable companies that are experienced in structured settlement transactions. Reputable companies of this type offer exceedingly fair buyout amounts.

Popularity: 23% [?]