Cash for Your Annuity Payments

Getting the cash to pay for your son’s college, or to pay for your new house is something you can’t simply ignore. While you can apply for a loan, often times the interest may not be very favorable for you and you end up paying more than the amount you borrowed. However, if you are a recipient of an annuity payment, selling a part or the whole of the payments may be enough to answer for your immediate financial needs. In fact, most annuity recipients sell annuity for this reason.

While it is true that you can find several annuity buyers that are interested in buying your annuity payments for lump sum of cash, not all will be willing to pay most cash for your annuities. So it is best that you carefully choose to whom you’ll sell your annuity. There a few steps you need to follow to sell annuity for most cash.

Do Research

The first step you need to do is to make at least a short research about your annuity payments. Does the agreement you signed allows you to sell annuity payments or transfer your rights to a third party? Does it require court order so you can sell your annuity? How much does your annuity cost? It is best that you also consult your lawyer, or your financial adviser when deciding whether it is favorable for you to sell your annuity or not.

Ask for Quotes

To help you find the best annuity payments buyer (the one who is willing to pay most cash for your payments) you need to have an idea how much will they pay for your annuity by asking for their quotes. You can either personally visit them at their office, or call their business line, or you can visit their online website. Either ways, you can secure the quotes you need to better decide on the matter.

Analyze

Choosing the highest bid does not end the process. You also need to verify if they will be charging you with other fees in connection with the sale of your annuity. Some annuity buyers would usually offer huge amount of cash for it only to find out that they have to deduct from that amount the fees needed for the processing of the sale of your annuity. Compare the fees and the amount these annuity buyers offer you. Consulting your lawyer or financial adviser will be very helpful in this stage. Once you have cleared and compared everything only then you’ll finally sell annuity payments.

What You Need to Know About Structured Settlement Companies

Structured settlement companies can help you a lot. A structured settlement is a financial or insurance agreement that a person accepts rather than taking a lump sum payment. There are many factors to consider when looking for structured settlement companies to work with. One important decision is whether or not getting a lump sum by selling each one of your future payments is an option. The best things about hiring a company is that you will have peace of mind knowing that you will not be deceived.

Structured settlement companies assist in paying the bills you have now. The problem with this is if the structured payments are not enough to cover all unexpected expenses, which is one of the most common issues among the customers of these sort of financial firms. The key is to find the right firm to sell your structured payments to. Time and research is necessary before accepting any lump sum for any structured settlement you may have. The reason for this is that you will maximize the amount of money that you will get out of these transactions.

There is a lot to consider when searching for the best structured settlement companies in the market. They must be very easy to work with, and offer you all the help you need to solve particular issues in your case. If you rush through the process, the results might be disappointing. It is also important to set your emotions aside when choosing a financial firms as some of firms may try to take advantage of your weakness to get more money.

These are some of the pros and cons of using the services of these firms:

Pros

1. Instant cash. They are great for those who are not currently employed or are currently facing financial troubles

2. Investment. Inflation is the increased value of goods and services therefore the value of a dollar today is worth more than a dollar in 30 years. This is one of the reasons why many people use the services to get a lump sum and to invest their money.

Cons

1. The lottery effect. It is very common for lottery winners to spend all their money within five years. The same situation might happen to you if you spend your lump sum irresponsibly. You need to know that structured settlement companies buy their structured settlements at a 25% or 50% discount. This means there will be consequences if your investments are not handled with care.

Conclusion

As you can see, they are useful. It is an excellent method to get money fast if you need it right now, but there are many factors to consider before doing this. It is important to assess the pros and cons of using the services of these financial firms because there are consequences for being irresponsible. Before committing to structured settlement companies, you should take the time to research and investigate the pros and cons and seek counsel at any time.

An Investment You Can Trust

Company leaders must constantly evaluate the ROI on system-wide programs and initiatives. Things that were once considered simply a good business practice, like community and philanthropic involvement, are today considered an investment. After all, in business, what is more valuable than your time and money? Yet, community involvement remains one investment whose power can never be underestimated. True involvement in charitable programs is still one of the easiest methods to increase corporate awareness, recruit and retain employees, and give back to the community that supports you.

Common sense dictates that philanthropic involvement is a feel-good, easy way to positively position your company with shareholders, investors, customers and employees. Not only does your involvement improve your image with those who have a vested interest, but it is also a good way to generate positive media coverage for your company.

More importantly, community involvement can do wonders for employee morale which can lead to higher productivity and a team-focused, enjoyable work environment. In addition, coming together for a common cause promotes teamwork and the desire to learn new skills and practices. Many companies use workplace philanthropic programs to retain their employees and even recruit new ones. Job-seekers are often attracted to companies that give back to their communities, and allow personal time away from the office for volunteering. In fact, 58% of companies use their employee volunteer programs for recruiting and retaining employees, according to the Corporate Volunteer Program as a Strategic Resource.

Your involvement doesn’t just benefit your company and employees, ultimately, the organization in which you are supporting has a better success rate because of your goodwill and generosity – you have opened the doors for them to get their message out. In addition, your company’s involvement may have helped them reach their own goals, whether it’s increasing their volunteer base, community support or in-kind and/or monetary donations.

Obviously donating corporate time and money to community involvement is a win-win situation, however there are literally hundreds of credible organizations in your community that want and need your support. How do you choose the right one for your business? Nearly 82% of corporations focus their employee volunteer programs on core business functions. (i.e.: those in the real estate business start out with programs such as Habitat for Humanity). In addition, programs that are directly related to the community in which you are based, or programs that are universal to all businesses and lifestyles, are also great places to start looking. The good thing is that any non-profit you choose to support will be appreciative and eager for your involvement.

It may sound clich̩ but getting your employees and company name out into the community can be one way to achieve your corporate mission. It allows everyone Рyour company, employees, and the community itself Рto win. But just remember that with community involvement, just like with the many important things in life, you get out of it what you put into it.

Companies That Buy Structured Settlements

If you’re in need of immediate cash and it’s going to be some time before receiving the next installment of annuity payments for your structured settlement, it’s time to examine the options.

If you find that those small payments don’t take care of your financial needs, let’s take a look at the options for your scheduled payments:

– Take out a loan
– Cash out settlement

Sometimes opting for a cash out is better than taking out a loan against structured settlements, if you consider the total interest that you would need to pay.

So, selling your structured settlements is the best way out. One option to consider are the numerous companies that buy structured settlements. For some. the question might be how to find such a company? While you can consult your attorney or the insurance company, many look online.

Factoring Companies:
Yes, that’s what we call those who buy the structured settlements from the plaintiff and offer a lump sum in return. You have the option to either sell the settlement in its entirety or part of it. Things really depend on how much you need. If you have immediate cash needs many find that selling a structured settlement is often the right decision. If you can wait for 6-8 weeks after the hearing for the cash out procedure to be completed then, there’s no need to take the loan.

Important Considerations:
When you are finalizing on the appropriate factoring company you should keep a few points in mind. These will definitely make it easier for you to take your pick:

– Of course, the most important consideration is to see the best offer and weigh the pros and cons of working with a particular company. Saving as much as possible from getting lost in discounts and transactional expenses should be your aim while selling your structured settlements.

– Check if they are following the compliance requirements with the laws of the land. There are federal and state laws in place which may affect the transaction or prevent it altogether. It’s important to be aware of your local laws in this regard so that you can keep a track of whether they are being adhered to or not.

– Don’t forget to check if they offer customized services or not. Most of the reputed organizations aim at delivering according to the requirements of their clients. As such they offer a number of buy-out options which gives you the flexibility to choose from the available alternatives.

– Be certain there are no hidden fees involved before choosing a company to work with

Selling structured settlements that are not guaranteed or life contingent:

What is a life contingent structured settlement? In this case, you will receive annuity payments that are timed in such a way a part of the settlement will continue even after your death, but your heir will not be able to inherit the right to receive the payments.

If your structured settlements are life contingent, implying that the payments are not guaranteed or life contingent, and you want to sell a part of it or the entire amount, what do you do in such a situation? You’ve just got to find the right company. This kind of transaction needs specialized knowledge, training and trustworthy position in the market on the part of the factoring company, being a bit more complicated than the usual process. That’s why finding a company with a wide network and experience in buying these structures can successfully complete the financial transaction and hand over the cash to you at the earliest.

Many consider selling their settlement due to unexpected expenses, an opportunity presents itself, or out of necessity. Some of the more common reasons include college tuition, home repairs, buying a home, starting a business, medical expenses, funeral costs, or a down payment on a new time.

Whatever your reason might be to sell a structured settlement, it’s important to find the right company to work with.

Structured Settlement Loans

Structured settlements are financial awards made against one party for the benefit of another party, where the receiving party is awarded compensation at the expense of the other party, usually in settlement of for instance a workplace, personal injury or wrongful death compensation claim. Rather than receiving all the compensation award in full upon settlement, they provide for the award to be paid via a series of payments at agreed periodic intervals. The perceived benefit is that this reduces the likelihood of the award being spent unwisely shortly after the compensation is received. They are considered particularly appropriate for recipients who may be lack maturity at the time of the award or otherwise be considered vulnerable.

A structured settlement loan is an arrangement whereby the beneficiary takes a loan using the structured settlement payments as collateral for the loan. In the first instance and even if the settlement provides for an immediate payment, the first payment may not be received until several months after the date of the settlement, and if the beneficiary needs funds quickly they can chose to obtain funds faster via a loan, and then pay back the loan upon receipt of the future payment. In addition to this form of ‘bridging loan’, there may be instances where after a period of time after the award the beneficiary has a change of circumstances or priorities, and needs to access monies to fund certain life events such as home purchase or an educational course, or perhaps just to pay off debt. In these circumstances the beneficiary could choose to take out a lump sum loan as a means to release funds, and then arrange for the loan to be paid back from the future periodical payments. A loan should differentiated from selling the right to the payments outright. This is an option also available to beneficiaries of structured settlements, however, there is a subtle difference.

Before taking a loan, a beneficiary is best advised to consider whether this course of action is genuinely in their best interest. It is advisable for the beneficiary to be candid with themselves and ask whether the financial situation they are seeking to alleviate has been created by poor money management skills. If this is the case the receipt of a large lump sum of readily spendable money could actually make the situation worse, as it may just support a cycle of poor decision making, without forcing the beneficiary to address the underlying issues. In any event it is advisable to obtain professional financial advice before proceeding.

Structured Settlement Investments

Structured settlement payments are a form of financial compensation award whereby the payment is made as a series of periodic payments rather than as a single payment upon receipt of the award. This can take the form of significant payments when a beneficiary reaches a certain age, such as a 21st birthday, or it could form smaller monthly payments over many years or even decades. The payments are typically in made in lieu of a successful personal injury or workplace compensation award. They are often made when the beneficiary is a minor or otherwise considered vulnerable, and may not be considered best able to manage receipt of a large lump sum of money at a given time.

The terms of structured settlements are negotiated between the parties at commencement, and in some instances the financial priorities or needs of the beneficiary will change over time. In the event the beneficiary wants more or all of the funds in the payment plan earlier than scheduled, they have the option of selling part or all of their future payments in return for an immediate lump sum payment. A characteristic of selling the periodic payments in return for a lump sum is that the seller will not receive the full notional amount of the total payments. For instance, if the award provided for a sum of $400,000 to be paid in equal annual instalments over 10 years, if the beneficiary sold the right to receive the payments soon after the award they may for instance only receive a payment of $300,000.

When sold on the investment markets, the right to receive the payments are known as structured settlement investments. Essentially the investor is the party on the other side of the trade from the seller. Inside the investment markets they are considered to be Secondary Market Annuities, or SMA’s. SMA’s are considered to offer comparatively high yields and low risk compared to other annuity products. It should be appreciated that each SMA is unique and the payments receivable are specific to the individual structured settlement being purchased.

The higher yield payable from these investments is not reflective of a greater risk, but is rather reflective of lower liquidity. The terms of the payments were tailored to the requirements of the beneficiary at the time of the award, and often will not provide for equal periodic payments over long periods of time as is typical with a conventional annuity. Participants in these markets should also be aware that before they can be sold Court approval is required, and the remit of the judge is to ensure the beneficiary of the award is fully aware of the implications of the transaction and that the terms of the sale are equitable to all concerned.

Questions and Answers on Structured Settlements

Q: What are Structured Settlements?
A: If you have been involved with a lawsuit involving personal injury settlements, your attorney may suggest that you consider structured settlements. This is when your case involves settling for a large amount of money, and often the other side’s attorney will offer a plan for you to receive the settlement amount over a proposed period of time, rather than all at once in a lump sum. The payouts can range from an annual payment over a period of 10 years, for instance, to perhaps a payment twice a year. The party who is settling with your regarding your personal injury settlements will purchase an annuity which guarantees the full payment over time.

Q: Would I Benefit From Structured Settlements?
A: Avoiding a large tax impact can be one of the main benefits of accepting lawsuit payments through structured settlements. When properly organized, your tax obligations in regard to the amount you have received from the personal injury lawsuit settlement may be reduced, or in some cases may even be tax free. Someone who has been severely injured and will have years of on-going medical care and special needs may benefit from this type of settlement. In a situation of a wrongful death case where there are young children, structured settlements may be utilized to pay for the cost of college in the future.

Q: What are the Drawbacks of Structured Settlements?
A: You may not borrow against the future payments of your personal injury settlements. For instance, let’s say you’d like to purchase a home. If you receive an annual payout this may help for your income qualifications on the house, but you cannot access the annuity to put a down payment on the property. The amount of return on the annuity may be less than the amount you may be able to receive if you were managing the full settlement yourself.

Q:Is it True I Can Sell My Structured Settlements?
A: Yes, this can many times be done. There may be laws or restrictions which will come into play. Certain insurance companies which are handling the lawsuit payments may have restrictions on a sale to a third party. This can be an arena where unscrupulous business are shopping for a good deal, and offer you a low amount, but for a quick payout. Annuity buy outs are not always the best answer, and often may need to be approved by the court. At the very least, seek the advice of your personal injury attorney before entering into an agreement to sell through annuity buy outs.

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