Structured settlement annuities are highly sought after, because they tend to carry more generous terms than another form of life insurance, making them more appealing long-term investments. As a structured settlement annuity company works out a deal for you and your creditors, you will receive regular payments, which will be equal to the amount of money that you would have surrendered in a settlement should you have died in the prior agreed time period, stretched out over many years. These payments are tax-free and there is no legal issue of having already paid taxes on the annuity. Once you reach the agreed-upon settlement date, the annuitant becomes entitled to immediate withdrawal. Unlike a life insurance settlement, where you are only compensated at the end of the term, with a structured settlement annuity you can start to receive payments early if you so choose.
You will receive these payments for a specific payout sum, determined by the company that buys your annuity. It can be in a lump sum, annually, or via set payments that are semi-annual to semi-annually based upon a predetermined schedule. The payout amounts can be dependent on the type of structured settlement annuity companies that you work with, but all of them offer their clients a level of flexibility as far as the types of payment they are willing to work with, although some may offer higher payout amounts. Regardless of what company you work with, there are several things to keep in mind when looking to buy structured settlements, especially if you are just getting started in this field.
The most important thing to remember when buying future payments from a company is that there is usually no guarantee that you will ever see any type of payment. You should only buy from the companies that offer you the highest percentage of return for your lump sum. You should also look for a company that has the least percentage of interest tied to your payments, and has a long enough term to provide you with security. Finally, look for a company that offers you free and quick online quotes for the amount of money you would like to exchange for your lump sum of money, so you can easily see where you are spending most of your valuable time.
Structured Settlement Annuity Companies – 3 Important Things to Remember When Choosing the Top 6 Best Structured Settlement Companies
Three Important Things to Remember when choosing a Structured Settlement Annuity Company
The first thing you need to understand about these companies is that they are all in competition for your business and because of this, it is imperative that you understand how to separate the lemons from the rest of the companies. The second thing you need to realize is that you are in the reviewing process of determining which structured settlement companies will provide you with the most assistance with your structured settlement loans. While you may be comfortable with the top 6 best-structured settlement companies, that does not mean that you have to jump through all of their hoops to receive the assistance you require. The third and final thing you need to understand is that it is important to not make any financial decisions based on emotion; the only time this is good advice is when you are deciding between two identical products that offer almost the exact same services.
The information contained in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional legal or financial advice relating to the purchase or refinancing of any type of legal settlement loan, either from self-employed individuals or large corporations. If you are in need of any such advice or if you have been charged with investigating the market of Structured Settlement Annuity companies to help with your personal injury settlements, it is strongly recommended that you consult a licensed attorney in your area for further information and/or for assistance in making your selection.
Structured Settlement Annuity Companies
Structured settlement annuity companies are often given a bad rap in the annuity business. In truth, they are not all that evil or shady. There are legitimate structured settlement funding companies out there who really are just looking to do a good job and help people like you and me get the settlement we deserve. But it is up to you to do your homework and investigate which company will give you the most for our settlement as well as one that will not rip you off or force you into anything you don’t want. If you can do this, then you will be able to move forward with peace of mind and not worry about whether or not you are going to be able to make good on your annuity payments.
Some people mistakenly think that structured settlement annuity companies only deal with accepting payments and passing those payments on to their customers. However, a structured settlement is more than just the money you get for a settlement in the future. Some individuals just want the cash sooner than what annuity payments, or any other structured annuity payments, would pay for. In this case, some individuals choose to take a loan out from reputable structured settlement annuity companies. These loans are secured by a future payment that is put into an account and if you were to default on your payments then your lenders could go after your future payments and your home or other property would be at risk.
However, many of the legitimate structured settlement annuity companies also allow for lump-sum purchases. It is important to understand that when you take out a lump sum from a company like this it means you are withdrawing a percentage of your future structured settlement payments. This means that you will not get the full value of what your settlement was for but rather just a fraction of it. You should look for a company that allows for lump-sum purchases because this is where you stand to make the most money. It may not be the largest amount you can get, but it will be the most money.
Structured Settlement Payments – Choosing Between Structured Settlement Annuity Companies
Before you purchase a structured settlement annuity from any company, there are three things that you must know in order to make an informed decision. First, you must consider three key factors when investigating potential structured settlement annuity companies; company history, company stability, and company profitability. The company’s reputation, as indicated by the Better Business Bureau, the attorney general, and other third-party review sources, should be above average. The company’s history should be extensive; if it has been in business for more than five years, it is likely that it has excellent service and customer satisfaction. The company’s stability should be above average, and if you have been paying money to your structured settlement annuity, you want to be sure that it stays that way.
Once you have done all of these things, you are ready to enter the buying process, but you must also be aware of how much you are willing to pay for these annuities. Structured settlement annuities can come in two forms: cashed-in and annuities receivable. Cash in structured annuities allows the purchaser to draw down the value of the annuity as they need, but they must pay the insurance company before they receive a dime.
Annuities receivable allow the purchaser to receive periodic structured settlement payments, but they are paid on a monthly basis. This type of payment schedule gives buyers a chance to make sure that they can afford to make their payments each month. While both types of payments are flexible, lump-sum purchases give buyers the flexibility of making a large purchase and not worrying about paying for it for a few months or years. Whether you are interested in the cash in structured annuities or lump sum structured settlements, it is important that you research a number of different companies before making a final choice.