|
|
Additional Resources |
|
Life Insurance Settlement- What They Are And How To Use Them
By Jon Thomas
Unneeded or underperforming insurance policy holdings? Ever thought or heard of a financial services valuation tool and strategy called life insurance settlements? Well, if not, the capital markets Read more...
|
|
|
|
sell structured insurance settlements
Structured Settlements - Should You Sell Yours?
By Charles Essmeier, Thu Dec 8th
In recent years, it has become more common for victims ofaccidental injury who accept a settlement from the at-faultparty to accept a structured settlement instead of a lump-sumpayment. With a structured settlement, the injured partyreceives payments over an agreed-upon length of time – fiveyears, ten years, or even a lifetime, rather than receivingpayment up front in a lump sum. There are advantages tothis for both parties. The injured party may require constantmedical care, and the regular payments of a structuredsettlement guarantee that income will be available to cover themedical expenses. For the paying party, the settlement can bepaid by purchasing an annuity, which allows an upfront paymentto accrue interest, thereby producing a larger long-term yieldfrom a minimal investment. In many cases, a structuredsettlement is viewed as a win-win situation for bothparties. There are restrictions on structured settlementsthat may not suit everyone. Once you agree to accept astructured settlement, you cannot trade it back in for a lumpsum payment, nor may you use it for collateral for a loan. Whatif you want to buy a home and pay cash? What if some otherunexpected expense comes up and you simply do not have the cashavailable? Under certain circumstances, you may be able to sellyour structured settlement to a third party.
There arecompanies that are interested in purchasing structuredsettlements for investment purposes. Perhaps one or more ofthese companies has already contacted you. They will agree topay you a lump sum, in cash, in exchange for you signing overyour future annuity payments to them. Be aware that any partythat
offers to buy your annuity is interested in doing so forinvestment purposes. They wish to make money on the transaction,and for them, that profit will be spread over the long time thatit takes to receive all of the payments that constitute thesettlement. Once you combine the factors of time, interest,inflation, and the buying party’s profit, you will find that theoffer made to you will seem quite small. The amount you receivewill be an amount equal to the present day value of thesettlement, minus whatever sum the investors require for theirprofit on the transaction. You should also know that somestates prohibit the sale of structured settlements, that someinsurance companies who handle the annuities prohibit sales to athird party, and that you will probably need to go to court toarrange the sale. In addition, there may be tax considerationsinvolved in the sale, and the taxes due on large sums of moneyare not insignificant. If you are interested in selling yourstructured settlement, you will definitely want to discuss thesale with an attorney and a tax advisor beforehand. Whilestructured settlements are designed to benefit those who receivethem, there are times when it may be desirable or necessary tosell them. If you are considering selling your settlement, makesure that you weigh all of your options carefully. Once youagree to sell, you cannot get it back. About the author:©Copyright 2005 by Retro Marketing. Charles Essmeier is theowner of Retro Marketing, a firm devoted to informationalWebsites, including StructuredSettlementHelp.com, a site devotedto structuredsettlements and HomeEquityHelp.net, a site devoted to home equity loaninformation.
We strive to provide only quality articles, so
if there is a specific topic related to structured settlement that
you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our sell structured insurance settlements website
Additional
Resources
The lowdown on getting cash for a structured settlement payment
By George Hostetler
It is possible for recipients of a structured settlement payment to sell a part of the amount for a lump sum that can be used for meeting some near-term expenses. The process of transferring one’s Read more...
|
Additional
Resources
Structured Settlements Brokers
By MAX BELLAMY
Some companies offer their services in form of brokers or representatives who can deal with the structured settlement process. These brokers would be the people who are actually involved in the Read more...
|
|
|
