list of structured settlement companies
Structured settlements are legal settlements where a defendantpays a specified settlement amount to a plaintiff in installments over time. For instance, if you win a $50,000 settlement, you may receive $1,000 a month for 50 months or $1,000 a year for 50 years, depending on the terms of your structured settlement. Structured settlement payments can also result from other annuities of various types. Instead of receiving a settlement over the course of many months or years, many people prefer one lump sum which can then be spent or invested immediately.
If you need to pay off debts, have medical bills, or are facing a significant expense, you may want your cash up front. There are many services that buy structured annuities in exchange for a single cash payout. In fact, you may have seen a commercial or even been contacted by one of these companies since they market their services aggressively. Many brokers will offer different types of structured settlement loans as well. In these situations, you can borrow cash against your structured settlement, just like you can with a loans against any other type asset.
You can sell the entirety of your structured settlement or a portion of it. Many factors affect the amount you'll ultimately receive, including the total amount of the settlement you're selling, the number of payments you're selling and how often these payments are made.
Broker
A structured settlement broker, also known as an annuity broker, is a professional with specific training in structured payments. Brokers can aid in the whole process of obtaining an advance or full payout against the settlement.
Direct-funded
Direct-funded companies have their own sources of capital and are therefore free to make decisions on the purchase of settlement payments. Other companies must use a third party to guarantee funding which can lead to delays.
Some rated settlement companies:
• Fairfield Funding
• Peachtree Financial Solutions
• J.G. Wentworth Structured Settlements
There are benefits and drawbacks to selling your structured settlement. Here are just a few you should consider
Advantages
• You get immediate access to your money instead of receiving it monthly over several years.
• The lump sum of your settlement retains the same tax status as your initial settlement. An insurance settlement is tax free, so, too, are the proceeds from selling one.
• You can sell a portion of your settlement without depleting the entire annuity.
Disadvantages
• When you sell your structured annuity, you give up future value for present gains. Structured settlement companies take into account the depreciation of future earnings and apply a discount rate to your settlement (more on that below). What this means is for a $100,000 settlement, you can expect to receive anywhere from $30,000 to $50,000.
• It can sometimes take months for the paperwork to be completed and for a judge to approve the sale. If you need money immediately, you may want to look into alternate ways to get it.
• If you rely on your structured settlement to pay bills, selling is unwise. You can compromise your income stream and leave yourself at risk for dire financial consequences.
