Structured Settlement Quote

An accident victim may need a structured settlement quote from a funding company if they would like to swap the payment schedule for a lump sum amount. Structured settlements are insurance payments made to claimants as a result of damage, death, or injury from an accident. These payments may be in varying amounts or equal amounts over an agreed upon length of time. Many funding companies offer both quotes and calculators online for accident victims to use if they would like to cash in these structured settlements to get the full amount they are owed. There are many reasons to use these services, but not all situations merit the sale of a payment schedule.

A dump truck runs a red light and slams into a compact car. The injuries to the compact car driver are critical, but the driver recovers. The insurance company for the dump truck driver must pay compensation for the vehicle damages and the physical injuries. Since the injuries were so severe, the compact car driver will experience limited mobility for the rest of his life. The insurance company and the driver's attorney settle on a compensation amount. The insurance company is to pay out eight hundred thousand dollars in through a payment schedule. The driver chooses to begin the payments in five years when he had originally planned to retire. Yet, two years later, the driver's wife is diagnosed with a life-threatening illness. The medical bills are mounting. His compensation won't be paid for another three years. This is exactly the type of situation which requires a structured settlement calculator or quote.

A woman driving under the influence hits a family car. The parents die and the two children survive. The compensation from the insurance company falls into the millions, but the structured payments are spread out over many years. The first payment was used in full to pay medical bills. After a year, the children's guardians notice that the insurance company has been in the news a lot. The possibility of bankruptcy seems to be on the horizon. If they keep the agreement with the insurance company, it may no longer exist, and the money may be gone. This is yet another situation which may require a structured settlement quote.

The Bible says, "He that gathereth in summer is a wise son: but he that sleepeth in harvest is a son that causeth shame" (Proverbs 10:5). The compact car driver has two choices: wait for his payments and stand by helplessly as the medical bills continue to grow or use a structured settlement calculator and seek to cash in his compensation with a funding company to get the lump sum immediately. The second option seems to be the wiser. It will give him the freedom to pay those medical bills and seek more treatment for his wife. The orphans' guardians have two choices: wait and hope that the insurance company doesn't collapse or work with a funding company and get the lump sum up front with no risk of bankruptcy.

To get the ball rolling, either compensation recipient would need to contact several companies for their structured settlement quote. This is the lump sum amount that a funding company is offering for the structured settlement considering all of the factors involved. These factors include the total amount of the compensation, the number of payments, and the payment amounts among other details. It's wise to get several quotes from several different funding companies. The companies should be reputable with a long-standing history. Moving from an unstable insurance company to an unstable funding company would be redundant, so make sure that the funding company has a solid reputation for stability. The next step would be to seek the advice of an experienced attorney, perhaps the same attorney from the original settlement. Not all accident victims use an attorney during the settlement process. However, since so many legalities are involved in the sale process, it's necessary to have one working on the recipient's behalf.

Another helpful tool for settlement recipients is the structured settlement calculator. This tool will allow the recipient to calculate a possible lump sum amount. They are available online through some funding company websites. The information needed for the calculator includes the original lump sum, the current payment, how frequently it's paid, and how many payments remain. The calculator can then provide an estimated structured settlement quote. Although these are great tools, it's better to sit down with or call someone at a funding company regarding a quote. Many website will also provide quotes via email once the recipient submits all of the necessary information. In a short amount of time, it's easy to gather quotes from several companies to compare side by side.

Turning a payment schedule into a lump sum amount isn't for everyone. In fact, it could cost the settlement recipient thousands of dollars in lost funds. Seeking a structured settlement calculator or quote may not be wise if the recipient is looking to just invest the money. The return may not outweigh the overall loss. Purchasing cars and other items, investing in real estate or a risky business venture are all bad reasons to seek out a lump sum estimate. These services are only wise to use when the money is at serious risk of being lost or is needed in dire situations. Even if the insurance company stipulates that the recipient can't sell the structured settlement, there are ways around those agreement clauses. The funding company or the recipient's attorney can work with state laws to make the sale happen anyway. Carefully choosing the right funding company through structured settlement quote or calculator can make all the difference.

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