Attorney Fee For A Structured Settlement

An attorney fee for a structured settlement can be high or low depending on the amount of time and the amount of distribution awarded to the client. Structured settlements have been successfully used to settle claims resulting from personal injury suits; vehicle accidents, liability of a product, medical malpractice, and workers compensation coverage. Some of these cases are completed in structured settlement litigation. Whenever litigation is required, the rates of an attorney are raised to another level. Future payments made periodically can be income tax free, which makes it an attractive way to receive money. It is also preferred over taxable investments, since the earnings made on an investment are taxable. A claimant can avoid the risks associated with other types of investments. Payments are typically tailored to meet the claimant individual current situation, and can be adjusted as the years progress to fulfill other unique circumstances.

Sometimes a plaintiff will settle a case for a large sum of money. In structured settlement litigation, the defendant, the plaintiff's attorney or a financial planner will advice the claimant to be paid in installments over time rather than in a single lump sum. The attorney fee for a structured settlement usually paid up front by the defendant, but if the fee is very large, it may also be included in the installment payment settlement. A specific advantage of an installment settlement plan is tax avoidance. When set up correctly, installment payments can significantly reduce the claimants tax obligations, and in some cases may even be tax free. These types of payment plans are used for those who are not good at managing money, those that require the money for future needs most importantly, for those who cannot refuse the requests of family and friends, and for minors who are not responsible enough to be able to handle a large sum of money.

There are also disadvantages resulting from structured settlement litigation cases. People that choose this route may feel trapped by the periodic payments. They may wish to purchase a large ticket item, and can't because they can't borrow against future payments from their settlement. Some people will do better with receiving a lump sum, and investing it themselves instead of the additional costs associated with paying and attorney fee for a structured settlement. Many other standard mutual fund and stock investments will provide a greater rate of return than the annuities used in common distribution payments. There are companies that exist who approach people with the hopes of purchasing their distribution settlement in exchange for a lump sum payment. There are only 35% of states within the country that do not restrict the sale of a settlement. Most have enacted laws of restriction for third party purchasers.

People who are paying an attorney fee for a structured settlement should be careful to watch out for potential exploitation in relation to the distribution plan. The first thing to watch out for before going through structured settlement litigation is excessive commissions. Annuities can be very profitable for insurance companies, and often carry with them high commissions. Experts recommend doing the math to be sure that the commissions charged in setting up an annuity don't consume an inappropriate percentage of the principal. Second, claimants should watch out for an overstated value of the annuity by the defendant, or payer. Claimants should compare the commission fees and values of the annuities offered by the payer, with other annuities to check for continuity in price and structure. There have also been cases when the lawyers involved are also in the insurance business and receive kickbacks or cuts of the annuities used. The claimant should be sure that none of the attorneys are causing a conflict of interests.

Claimants should also check around to be sure that their attorney fee for a structured settlement is not too high or over charged for the services rendered during the structured settlement litigation. Unfortunately, but most common is the life expectancy of the claimant. Many people who receive large settlements have a shortened life expectancy as a result of the injuries that warranted the structured settlement. It is important to set up the annuity to pay the estate the remaining money if the claimant should pass away. This way the insurance company does not get to retain the money that they lost in a court ordered settlement. It is also advised for the claimant's protection to purchase annuities from multiple insurance companies. This provides the protection needed in case an insurance company goes bankrupt. Not putting all the eggs in one basket is always a wise way to accumulate a safe return on investment or on money owed. Wisdom comes from seeking the knowledge required to make appropriate choices that can safeguard the financial wealth of an individual, family, or other organization. "When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou has vowed." (Ecclesiastes 5:4-5)

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Best Annuity Rates

Understanding what the best annuity rates are begins with an exploration with what is, exactly, an annuity. An annuity is usually associated with a retirement plan, and is a product sold by life insurance companies to provide monthly income for a certain amount of time or in perpetuity, which is a term meaning no formal end. Many banks also offer the plans, usually sold by someone at the bank who has a license to sell life insurance. "Watch ye therefore, and always pray, that ye may be counted worthy to escape all these things that shall come to pass, and to stand before the Son of man." Luke 21:36) There are some important questions to ask, however, before looking to see what the immediate annuity rates are, and if they are acceptable for your situation.

The first thing to understand about this option is that someone is going to make a commission on the agreement. It is sold as a life insurance product, but instead of being given a lump sum at the death of the insured, the plan begins paying monthly or yearly to the insured either immediately at the time of the sale or at a future date. In many ways, the life insurance company, when it comes this plan, is putting the insured's money in the bank and letting it grow interest just as a savings account might do. This would be called a fixed annuity, which means your money will make a promised rate of return for the life of the policy. In this case, the buyer would be purchasing a fixed rate plan, and would be subject to the current and immediate annuity rates of return. On the other hand, if the buyer of the policy is not concerned about the fluctuation of the stock market, the owner may purchase what is called a variable plan and depending on the performance of money market funds attached to the policy, may actually offer the best plan rates available.

There are some advantages to buying this kind of policy, and may fit some individual's need for future or immediate financial security. First, the buyer can receive tax deferment on the money paid into the plan. That means not paying taxes until the policy begins paying out, and if the payout begins at a time the owner has turned sixty-five, a lower tax bracket may come into play. The buyer of such a policy can also receive lifetime payments if the option is to annuitize. In addition, a life insurance policy is usually included as part of the policy program. Plus, if the buyer decides in a fixed plan, the owner can count on a fixed rate of return for a lifetime.

Let's take the case of Mr. Bobblehead, who is a fifty eight year old man with only ninety thousand dollars in a 401 K plan. The man has a term life insurance policy that will expire on his sixty sixth birthday. The man's wife is ten years younger and can work until she reaches sixty seven. Mr. Bobblehead has been concerned about his life insurance running out and not being able to leave his children much of an inheritance. The man has started a small business that he may be able to take into his seventies. If so, buying a variable policy now might not provide him the best annuity rates, because of the state of the economy. On the other hand, getting the best annuity rates means perhaps he will buy a fixed rate policy, settle for the immediate annuity rates available and allow it to accrue interest.

That plan, plus including a life insurance policy with the plan may be exactly what Mr. Bobblehead needs. With the man's age, buying a life insurance policy up front as part of an annuity program just might answer most of his concerns. But there are other things that Mr. B ought to consider before making a final decision. First and foremost, in many ways this type of policy is much like a CD purchased at a bank. The fixed rate annuity will make about the same amount of interest as the bank offers its customers. The representative of the bank or the life insurance company Mr. B buys the policy from will make a nice commission. That is money that he could have put into a CD.

But the fact that the policy carries with it a life insurance policy was the deciding factor. Mr. B wisely shopped around for several weeks and decided on an east coast life insurance company that had been in business for over one hundred years. The man had read in several different journals that this policy could disappear if the life insurance company ever went belly up. Mrs. B was thrilled to know that if her husband died unexpectedly, she would continue receiving monthly checks until she too passed away. The couple promised one another that in twelve years, when the first policy check arrived, they would take the money and go that famous northwest coffee place at the mall. After all, by that time a cup of coffee there might cost five hundred dollars!

If this type of policy annuity is right for a person's situation, then that individual must decide on the immediate annuity rates, which would imply a fixed policy, or the best annuity rates, which would probably mean a variable plan. And like everything else based on the stock market, what is smoldering today may be ablaze in six months. It is kind of bizarre to listen to the claims of financial companies and life insurance companies on television ads. The basic idea they convey is, "trust us for your rock solid future." This writer has news for the reader: a rock solid future is not found in an annuity or a large investment portfolio, but in the Architect of the Universe!

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Buyer Of Structured Settlement Annuity

To find a buyer of structured settlement annuity payments, a receiver should first ask some important questions to the potential buyer of structured annuity settlement payments. The first question should be asked to discover what types of programs are offered. Typically, programs offer lump sums of cash in exchange for a continual payment distribution. Before signing a contract, the receiver of the distribution should get in writing what percentage the buyer will take from the total amount of the payment distribution. No two annuities are the same, and an underwriting department can customize each transaction for the client. Most of the time, the distribution will be exchanged for 50% of the total amount or less. Transactions can take place anywhere from 4-8 weeks once the process has begun. Of course, since each settlement is different, completion times can vary.

A reputable buyer of structured settlement annuity payments will mandate or at least encourage a client to seek the advice of a lawyer before signing over any distributions. An attorney should review the agreement. Since clients are dealing in large sums of money; it is always in their best interest to get legal advice on transactions and contracts. The buyer of structured annuity settlement payments should also have a department where testimonials of previous clients or experienced negotiators can walk new clients through the appropriate steps of an exchange. A reputable buyer should also have been in business for while with certifiable successful transactions in the past. At least one referral should be found outside of the potential program being considered as to verify, on a personal level, the validity of the organizations claim. Experienced and hard-working staff members should reveal the step by step process from beginning to end with a potential client.

The first step towards completing a transaction with a buyer of structured settlement annuity payments is to send the paperwork outlining the annuity information so it can be evaluated and further processing decided upon. Clients should be able to contact a staff member at any time with questions or comments concerning the direction of their account and all its planned transactions. Most programs will be able to accommodate the clients funding needs. The lump sum can be directly wired into the client's bank account, or a check can be issued. If other arrangements are needs, or the lump sum is to be distributed to multiple places and accounts, a reputable program will be able to accommodate even the most unique circumstances. There is always a solution to be found to a problem when dealing with an experienced buyer of structured annuity settlement organization. The best organizations are those with high ratings from top notch financial rating firms.

The discounted lump sum that is being paid by the buyer of structured settlement annuity payments may cause confusion for those who are not properly educated in the reasoning for annuity settlements. When an arrangement is made from an insurance company or lottery commission, a portion of the money the receiver is getting is actually from interest on the lump sum that has not been earned yet. The payer invests the money they owe the receiver, and then pay the receiver their annuity payments out of the interest earned. When a buyer of structured annuity settlement organization offers a discounted sum, they are paying what the payer would have paid; only they are keeping the interest from the original payer. This is true with lottery winnings as well. If the winner opts for the one lump sum payment, they actually only get a little less than half of the amount won.

Many people do not understand this concept, even though it is exactly identical to a structured settlement. In the case of the lottery, annuities or Unites States Treasury bonds are purchased to fund the future payments due to the winner. A buyer of structured settlement annuity payments will also purchase lottery winnings. Unfortunately, when keeping the settlement payments instead of allowing a buyer of structured annuity settlement to purchase the settlement, the money received is not worth as much. This has resulted primarily from inflation and the lowering value of the dollar over the years. No matter what the source, inflation will make the value of payments shrink in coming years. The best way to beat this is to seek the legal advice of a professional who is aware of the client's needs and goals in order to devise a system of payment that will be more beneficial in the long run to the receiver. The average rate of inflation the last 10 years has hovered around 4%. That means for every 10% of interest earned on a lump sum, it actually is only worth a 6% interest increase. "When thou vowest a vow unto God, defer not to pay it, for he hath no pleasure in fools: pay that which thou has vowed." (Ecclesiastes 5:4-5)

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Buyer Of Structured Settlement Payments

A buyer of structured settlement payments will often offer to purchase the scheduled payments from an individual. There are many reasons why individuals will choose to participate in this and why companies may offer this service. For the consumer or individual receiving the settlement, they may desire to receive a lump sum instead of a scheduled plan. The money may be needed immediately for a large bill or expense. Making small payments may mean paying more on bills over a period of time for the individual. Companies often recognize the needs of the individuals to receive money immediately as opposed to small payments on a regular interval. The company stands to gain money through the settlement which will often be much greater than the lump sum amount they provide to the individual because of fees and other costs that may be accessed for the service. As the buyer of a structured settlement, a company receives benefits while the individual receives the amount of money they need for various expenses.

For the individual, structured settlement payments are supposed to be set up where periodic payments, usually on a monthly basis, are received for injuries, wrongful death, and other similar lawsuits. The money is often paid out in this manner to allow individuals to receive a continual flow of money as opposed to a lump sum. With a lump sum, the money is taxable and the individuals may feel free to spend the money. There is a huge advantage to receiving the tax free payments. Often, the amount of taxes that individuals have to pay can be quite high, especially on a large amount of money as a lawsuit might provide. As a high dollar amount comes in all at once, the individual is more likely to spend the money as opposed to saving it. This could cause serious problems in the future when further medical bills or other expenses come due. For individuals receiving scheduled payments as opposed to a lump sum, there may be times when a larger amount of money is needed for higher bills. In this situation, the individual may seek a buyer of structured settlement payments. Many companies throughout the country have been established for this purpose. Seeking the buyer of a structured settlement can be a very important thing for an individual. There are many times when the individual may run into financial problems that require a large amount of money as opposed to the small amounts over the time period.

Many companies are more than happy to work with individuals in need of a lump sum in return for periodic payments. First and foremost, the company will receive a profit from this transaction. Certain fees and percentages will be taken out of the payment in order to allow the company to cover expenses and make a profit. This allows the company to continue to complete these services for other individuals. Operating expenses such as payroll, supplies, and other costs will be covered by any profits that are received through this service. The buyer of a structured settlement is not only interested in making a profit, but most are very willing to provide this helpful service to individuals. A buyer of structured settlement payments understands the needs of individuals who are in this situation. Working with a buyer of structured settlement payments is something that may seem difficult to individuals. Choosing the right company, getting advice, and making the best choices may have a tendency to be overwhelming. There is also a choice to be made on selling the entire settlement or only a portion to the company. For a Christian involved in this situation, trusting in God can be helpful in this decision. Praying to God for guidance and strength in decisions will often provide answers and peace of mind. "Trust in the LORD with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge him, and he shall direct thy paths" (Proverbs 3:5-6).

An individual involved in a structured settlement payment may sometimes find it difficult to pay bills or expenses with the scheduled plan they have been given. This may call for some outside help from a buyer of structured settlement payments. Many companies offer this service for individuals in need of help. These companies set out to make a profit and assist people in need of financial assistance. In some cases, the individual may want to sell the entire payment plan to the company. There are times when only a smaller lump sum may be necessary, allowing the individual to only sale a portion. No matter what the situation may be, it is important for individuals to understand that help is available. There are companies throughout the country that are more than willing to work with individuals to provide money as the buyer of a structured settlement payment. Finding the company that is right for the individual will require resources, legal assistance, and faith in God.

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Assignment Of Structured Settlements

A buyer of structured settlements can be any financial business that is designed to purchase contracts from consumers that are legally binding in order to pay off debt in installments or periodic payments. For whatever reason the assignment of structured settlements occur in anyone's personal financial landscape, there are options for receiving payment in one lump sum. This may be more beneficial to an individual than periodic, systematic payments that may not substantially impact personal lifestyle immediately even though the overall amount may seem large at first glance.

The assignment of structured settlements usually occurs from legal actions that require insurance companies to compensate the receiving party for some harm or injury that is proved to have occurred. The amount of financial compensation is usually quite large for anyone who accepts these types of legal contracts. All parties can benefit from financial agreements including the recipient as well as the company responsible for payments. The contract insures that the financial compensation awarded the plaintiff will be paid and it allows insurance companies a lengthier period of time to pay off the contract in installments that are easier to manage.

Especially in large financial contracts, the responsible company has an opportunity to meet legal obligations without causing upheaval in its financial structure which could cause some companies to go under if forced to pay off court awarded payments in a short period of time. When plaintiffs receive assignment of structured settlements, they usually receive incremental pay offs that can be scheduled over a period of months or years. Some pay offs can last for the remaining lifetime of the plaintiff and any remaining portion thereafter is guaranteed to a person's estate and heirs. Insurance companies are not the only sources that use this type of pay off plans to pay off financial commitments to individuals.

Other organizations use this method for more pleasant transactions of large monetary winnings that individuals receive through promotional campaigns or state lotteries. For those who have winnings into the millions, an assignment of structured settlements is a common method of pay off. Pay offs of winnings or legal awards can make a huge difference in the lives of the recipients providing they receive large enough pay offs to alter their lifestyles. However, not all pay off schedules allow large enough payments in a short period of time to really make significant lifestyle changes that are important to recipients. Some awards and winning can be as large as several million dollars that is scheduled to be paid off over a 30 year period for example.

This may sound like a lot of money, but in the case of a 30 year old who still typically has a long future of work related activities ahead, monthly installments over a another 30 year period may not change the financial dimension of his or her life enough to be satisfied with that time frame. Perhaps a 75 year old person receives a court award that is to be paid off incrementally over another 20 years. In many of these types of cases, recipients prefer to use the services of a buyer of structured settlements in order to receive a pay off in one lump sum.

The company that buys legal contracts for incremental pay offs of court awards or prize winnings will pay for a contractual assignment of structured settlements. Of course the company will need to make a profit, so the recipient of any pay off agreement must sell the contract for less than what it is worth if left to full maturity. Financial companies that offer this type of option for pay offs make it possible for individuals to receive a lesser, one time sum in exchange for the contractual agreement. The business will then be the recipient of the contract and will make a profit from the difference of their pay offs for the final agreed upon amount.

Even though an initial settlement can technically offer more remuneration from insurance companies or more winnings from some prize giveaway, it can be very beneficial for both parties to deal with a professional buyer of structured settlements. Most people realize that it is more helpful to receive a large sum that can make a difference in their lives immediately such as paying off a mortgage, purchasing a home, making investments for retirement or being able to retire earlier than expected. However, carefully weighing all the options is generally the wisest move for anyone. "The thoughts of the diligent tend only to plenteousness; but of every one that is hasty only to want." (Proverbs 21:5)

For those who are the recipients of a legal settlement or winners of a prize giveaway, the benefits of selling settlement contracts to a buyer of structured settlements for an amount that can permanently alter personal lifestyles is something worth considering. There are many online sources that specialize in contract buy outs for those who have been awarded large sums of money for one reason or other. Check with several professional online sources for the best financial option for the future.

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Buying Mortgage Notes

The realtor searched online looking for someone buying mortgage notes. The clients she had represented had not lived in the house for four years, and had, in fact, moved to Arizona to get away from the dark atmosphere that pervaded the area. The area of the county in which the house was located was a vast wasteland of unsold property, due to three large manufacturing plants closing in just the past ten years. They had sold the house on a land contract to a supervisor who had moved into the area from the South. Now the guy had tripped up on a few monthly payments and the couple was getting very antsy. The question was, "Would anyone want to buy real estate notes in this barren economy when seemingly nothing was moving?" Surprisingly, the couple knew nothing about selling a property note to a broker, so when the real estate agent started sharing the information with the couple, they began becoming more and more interested. "For the word of the Lord is right; and all his works are done in truth." (Psalm33:4) Here is some of the information the realtor gave this husband and wife:

The realtor began by sharing that there are businesses and individuals who made a living buying mortgage notes on a regular basis all across the country. The woman explained that there were a number of factors going in to deciding how much the two of them would receive for the note. The couple had bought the house ten years ago with a thirty thousand dollar down payment fixed rate loan for thirty years. They had purchased the house for one hundred and fifty thousand dollars, and had put ten thousand dollars on the mortgage principle during that time. They were now holding a note for about one hundred and ten thousand dollars. The couple allowed the land contract owner to pay a nine hundred and twenty-five dollar a month mortgage payment, not including real estate taxes. But now the couple was paying two mortgages in two very distantly separated states.

The realtor continued to share that in order to buy real estate notes, a broker leaves nothing to chance. This professional is out to make money and in order to do that, many things would have to go into the formula. Buying mortgage notes is a bit of an art form, with the bottom line really being the time cost of money. What this term means is the length of time the broker will have to hold the note before it is paid in full. So the further out the pay off date is, the less value the note is to the broker because the note will have to be held for a longer period of time, when markets and money might become tighter and more expensive. In the land contract, the couple had also offered the supervisor the same interest rate they had gotten originally, even though real estate interest rates had actually risen a point and a half. This surprised the original owners to learn that because of the lower interest rate, their note was worth less to the broker.

If there had been a balloon payment in the land contract, the realtor explained that the note would be very interesting to a person or business buying mortgage notes. If the payment is a long way off in its due date, there is not much value to the broker, and if the payment is coming due soon, and it appears the holder of the mortgage will not be able to pay the large payment, again not much value to the one who wants to buy real estate notes. When the couple sold the house on land contract to the supervisor, the contract stipulated that the note could be assumed by another buyer, leading to another problem for the broker. The supervisor had been a pretty good payer of the mortgage until recently, but with an assumable note, the next holder of the note might be a slow poke or even a deadbeat when it would come to paying. Another risk for the broker.

One of the strongest factors in favor of the couple was the fact that the property was a residential single family dwelling. However, this has a downside also because it is in an area of the country where there appear to be a lot of decay, or at least stagnation. But the realtor also explained that to a business buying mortgage notes, the loan to debt ratio is huge. Because the house was appraised recently at one hundred and forty one thousand dollars, and the remaining debt was at about one hundred ten thousand dollars, the interest to the business or the person that would buy real estate notes is marginal. The broker will consider that a person assuming the Arizona couple's mortgage note will be at a loan to value ratio of seventy eight percent, not a bad figure. This means that the new buyer of the mortgage may, in fact, stick around because of an investment of at least twenty two percent in the transaction.

It turns out that for the couple's situation, if the twosome sold their note to a broker, the duo would receive about sixty percent of the appraised value of the house, or eighty-four thousand, six hundred dollars. The couple would have to make up the rest of the twenty-six thousand dollar deficit to make the deal fly. In the end, it was decided that Arizona was more important than twenty-six thousand dollars. The couple could handle a ten year loan for twenty six thousand dollars. Another time when quality of life wins over the accumulation of things.

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Cash Flow For A Structured Settlement

Cash for a structured settlement provides solutions for money needed now. Personal injury lawsuits are normally designed to provide recipients with payments over a long period of time. It is possible to receive lump sum payments on personal injury lawsuits instead of waiting for future long-term disbursements. Financial experts can provide an analysis of one's situation to determine the best solutions regarding cash flow for a structured settlement. Variables for receiving an immediate lump-sum payment might include the size of the settlement, extension of payments, and financial ratings of the given insurance company.

Finding a buyer for a lump sum settlement is possible on the Internet. Some buyers provide cash flow for a structured settlement to recipients through a process where they finance the lump sum payment. Selling future payments for a lump sum amount is possible without tax penalties. Financial institutions purchase settlements and provide individuals with cash for a structured settlement. Individual needs may determine differentials in receiving adequate money for immediate concerns. Praying about one's situation to determine the best course of action is important when considering financial needs. Everyone's needs are different. Some individuals may wish to build a dream home or to start a business. Do some research on the Internet and find out what the costs are in acquiring help to meet financial obligations both now and in the future.

Companies online provide the consumer in need of cash flow for a structured settlement by matching one with the best funding company that specializes in lump sum payments. Companies providing this service usually partner with institutions to provide a helpful service to individuals who find that they have a specific need. There are companies online that provide this as a free service. Times to consider these options are usually when one is experiencing pressing financial concerns such as debt issues, cash flow problems, and legal issues. Speaking with a legal advisor in these types of situations is a good idea. Get some legal advice on financial matters by consulting a financial professional or an attorney.

Using future monies for today's concerns is possible through cash for a structured settlement. It is possible to receive a free quote from various companies online. Find out options with the process of selling future earnings. To receive a free quote, gather vital information that will be needed. Such information may include place of residence, insurance company, and the amount of payments. A copy of the settlement and policy are usually required before a contract is negotiated. Disclosures are sent with a final amount to be purchased and a contract will follow for a signature. A court will determine if selling future earnings is in the best interest of all parties. The process to completion requires a court hearing and the judge determines the validity and approves or disapproves the case. The complete process can take up to 60 days for completion.

When one is the injured party of an accident a settlement is usually awarded after determining negligence of a third party. The insurance company of the party at fault usually pays funds through a long-term agreement. If the injured party needs resolution sooner it is possible to seek cash flow for a structured settlement by working with a funding company. Documents are presented in court to approve transactions that provide resolutions. Once approved in court the funding company buys the structured settlement and provides the individual with a lump sum payment.

If one is involved in a serious accident it is usually a very unfortunate situation. Depending on the seriousness and the determination of the responsible party, one usually has some recourse through a settlement paid by the insurance company of the person who is at fault. Remember God does not put on us more than we can bear. Ask him for help through prayer and seek answers through his word. Thank him for everything, believing his word, "And we know that all things work together for good to them that love God, to them who are the called according to his purpose" (Romans 8:28).

It is possible to receive only a portion of cash for a structured settlement. Determine exactly how much cash is needed to provide one with security for current needs. While it is enticing to sell all future earnings it may not be wise. Consider current financial concerns but also consider future financial concerns in determining how much to sell of a structured settlement. Weigh all possibilities and seek some professional advice from a financial counselor. Obtaining cash flow for a structured settlement is enticing and will probably provide help with current financial problems. It is important to realize that financial institutions that offer cash for a structured settlement will charge a fee to do so. Compare fees and funding companies for the best choices on the Internet.

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Annuity For Legal Structured Settlements

Annuity structured settlements are given to people who win a court ordered payment, as in an injury suit, or a class action suit. An annuity for legal structured settlements provides the receiver with a certain amount of money each year/month for a set number of years or for a lifetime. This type of arrangement is often used when the money is of a larger sum than a company, person or organization can provide in one lump sum. Lottery winners are also issued this type of payment arrangement. Before agreeing to any terms, a receiver should be informed of the legal ramifications because they can get quite complicated. Many attorneys will rely on experts who routinely handle this type of payment. Typically, the expert is a broker that is familiar with working with many different companies that provide structures. The broker will gather information about the receiver, their medical history and bills (if applicable), lost wages, ability to return to work, expenses, and other information pertaining to the specific case filed.

The broker, while working closely with the attorney, will come up with tailored annuity structured settlements that best suit the needs of the receiver. The obligation to make the payments is then set up through a through a third party. The structure can be set up to benefit the receiver within a certain situation, and can change throughout the life of the settlement. The annuity for legal structured settlements can be made for higher payments in the beginning, while a person is out of work, for example, then the payments can decrease as the receiver is able to return to their place of employment. The payments can also be set up to pay certain bills off first, before monetary funds are released to the receiver for free use. An example of this would certainly be valid in a personal injury suit, where the majority of the funds would be sent in to pay for overdue and unpaid hospital bills. Next would be loss of wages, then payments for pain and suffering would be released.

Some questions to ask during the process of distribution for annuity for legal structured settlements are: Have there been other clients that the broker arranged payments for? What are the advantages and disadvantages of the different types of payment arrangements? Is a stretching out the payments better than a lump sum payment? Once these questions have been satisfactorily answered, the receiver can feel confident that their annuity structured settlements are in the hands of experienced professionals who are looking out for their best interests. An example of how one arrangement might work follows: A man is 25 years old, when an accident occurs. He cannot work and will need $2000 per month with an annual 3% increase for cost of living, and the ongoing payment of his medical expenses which will cost $1500 per month for 5 years. The man would also like to receive an additional $500 per month for the remainder of his life. There are currently $36,000 in medical bills, and $275,000 in lawyer fees. He would also like an immediate cash distribution of $31,000 in one lump sum.

For future needs of the man from ages 25-45 with regards to salary, the guarantee payout should be $644k. This includes the monthly salary with the annual 35 increase. Then for the rest of his life, depending on how long he lives, will cost the insurance company a total of up to $2.3 million dollars. The ongoing monthly medical expenses will cost the insurance company about $90k, plus the additional $500 monthly payment for life will cost about $390k. The current obligations will be the $36k in medical bills, the $275k in fees for lawyers, and the $31k in immediate cash distribution. Annuity structured settlements that are set up this way will cost the insurance company $3.6 million in cash, and another $1.1 million in fees, interest, and costs associated with the payout. An annuity for legal structured settlements claim can really cost the payer a tremendous amount of money just i additional charges, but it may be the only way a company can pay if they do not have the $3.6 million in cash to pay in one lump sum.

Most minor injury cases bypass annuity structured settlements and pay out in one lump sum. More serious injuries, especially those that render a person disabled for life typically require an annuity for legal structured settlements in order to be sure the victim in the situation is properly taken care of, since through no fault of their own, they are rendered incapable of working to support their own families. Structured settlements are becoming more and more popular because they are in the form of an annuity, which is sold by a third party, usually an insurance company. At times, they may be invested in U.S. Treasury securities, and it grows the money needed, instead of the company paying all of the money and is completely tax free at the state and federal levels. Receivers should research all of their options before accepting any terms on payment distribution. "When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou has vowed." (Ecclesiastes 5:4-5)

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Certified Structured Settlement Consultant

When getting a structured settlement, it is usually necessary to get a certified structured settlement consultant. These professionals know all about structured settlements, and they will fight to get the very best settlement in their client's case. Structured pay outs often result following an accident resulting in disability or injury or following a wrongful death. Regardless of the client's needs or circumstances, a structured settlement expert will be able to get a pay out plan that suits their client's budget. Before anyone calls a professional out of the phone book, though, it's important that they explore their options between lump sum and a structured settlement. They will also need to consider if the expert they choose is going to work hardest for them or not. After all, their pay out is only as good as their settlement consultant or expert.

A person who has been injured in an accident recently and is now seeking compensation might want to consider a structured settlement. With it, they will receive that compensation in payments rather than in one lump sum. A certified structured settlement consultant will say that this tends to be a better pay out plan than lump sum for several reasons. First, most structured pay outs are tax free. Also, since pay out is made over time, the money doesn't all disappear at once. Spending is easy to do when one has the money right in front of them. People also feel more generous when they have more money. The client will spend less if they take on a structured pay off. If the party who is due the settlement happens to be a minor, it might be better to have a structured pay out. Minors tend to be less frugal and may want to splurge rather than save for the future. In addition, the structured settlement expert will say that there is less worry about investing or holding your lump sum with a structured pay off. A lump sum can be subject to taxes and investment losses.

Once a potential client has decided that they want a structured settlement, they need to locate the right structured settlement expert. The professional needs to be able to calculate the client's costs and future expenses due to the incident that left them as victim. They need to be professional and reputable. This can be tricky because today so many consultants have a hidden agenda and actually have ties to the insurance industry. Potential clients will need to make sure that their certified structured settlement consultant has no affiliations with insurance companies and have the client as their priority. Make sure the expert doesn't work for liability carriers, doesn't represent the structure annuity carriers and doesn't support either of those types of carriers. Look for a consultant that offers a sworn affidavit stating that they have no ties to the insurance industry. Also, look online for reviews or comments about the companies of interest. Find out if there are any complaints against them with the Better Business Bureau.

One can find a certified structured settlement consultant either locally or through the Internet. There are companies that work exclusively to get their clients' structured settlements. Ask people if they recommend anyone. A potential client can also ask their lawyer to set them up with a good structured settlement expert. They usually have contacts in that area. The client can also look online for consulting firms that handle settlements. Watch out for scams, though. Keep in mind that clients cannot return to a lump sum after they take on a structured pay off. Be especially aware of offers for turning a settlement into cash payments. These can be costly. If a client foresees a time when they think they will need a good portion of their settlement up front, they should go ahead and take the lump sum. Otherwise, they will lose much of their settlement trying to get cash from a company for their settlement. No matter how your structured pay off turns out, though, you much remember that money only feels like a security blanket. True security is found in God. "He that trusteth in his riches shall fall; but the righteous shall flourish as a branch" (Proverbs 11:28).

The best structured settlement expert is the one that the potential client feels most comfortable with. Talk with a few companies. Find out how their settlement process works. Seek out a friendly voice. Getting a settlement might be stressful so clients want a certified settlement consultant who is trustworthy and supportive. If the client chooses to work with a non-local company found on the Internet, they should make sure they are certified and known. A reputable certified structured settlement consultant can get a better structured settlement set up for their client. They will be taken more seriously when negotiations are taking place and will also have loyalty to their clients that is uncompromised.

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Cash For Structured Settlements Payments

Cash for structured settlements is available as one lump sum or an initial lump sum of cash for the receiver. Cash for structured settlement payments can be made by a third party who purchases the original terms of the payout distribution and offers the receiver a lowered amount of lump sum payment. This discounted lump sum payment can be made by an individual or a company that specializes in this type of payout purchase. Sometimes, mass confusion can abound when the receiver of structured payments is trying to basically sell their distribution to another person in exchange for this discounted immediate lump sum. Many people are not aware of the fact that a portion of the money they settled for has not been earned yet, because it is in the form of interest. They are also not aware that if they win the lottery, for example, the sum promised, should they choose to receive it in a lump sum is typically half of what they actually won. It pays to read the small print of any court settlement or winnings.

Cash for structured settlements will therefore be significantly lower than the sum of all anticipated payments over the life of the distribution. When a payer takes the lump sum that must be paid and pays it out, they are out that money. If they place that same lump sum into a treasury bond or into securities, and pay the receiver over a longer period of time, then the payments being made are coming out of the interest earned on that lump sum, not directly from the lump sum, so the payer, once the person is fully paid off, will get to keep the original lump sum. For example: an investment of $15k over the course of 20 years at a 16% interest rate could turn into $360k. That is quite an increase, and it is no wonder that insurance companies and state lottery systems prefer that the winner or receiver choose to receive their money, if wanted in a lump sum, through a company offering cash for structured settlement payments.

Future payments aren't worth as much as one might think which is why a person might prefer cash for structured settlements.. Inflation eats away at the value of money. The further in the future a receiver is to receive their money, the less it will be worth. No matter what the source, insurance or lottery, inflation will diminish the value of the payout. Ideally, a person would want to place their money in inflation proof investments. An inflation protected bond is one way to go. They automatically pay more income as inflation rises. Treasury Inflation-Protected Securities can be bought directly through the Treasury Department. Typically, a place of residence or property also rises in value to meet inflation increases. This is true in most cases unless a home's value is topped off in an already overpriced section of town. People that are paying off debt with a fixed rate can also benefit by rising inflation costs. This is due to the fact that the payments they are making are worth less, than the money they borrowed, yet is still paid off per original agreement. It is also advised that employees request pay raises that at the very least rise with inflation costs.If all else fails, receiving cash for structured settlement payments may help.

Cash for structured settlements is also referred to as advance funding. Companies that offer advanced funding give cash for structured settlement payments in exchange of transfer of payment distribution contract. The percentage of payments that the buyer of a settlement keeps varies with the type of arrangement the receiver has with their payer. Most transactions are completed within 5-8 weeks depending again on the type of arrangement that was made between the receiver and the payer. There are some instances where a receiver has waived any rights to be compensated in a lump sum by any third party buyer. There are also many state and federal statutes that require a receiver to see an attorney before transferring over payment distribution to a third party lump sum payout organization. Any good third party buyout organization will encourage a client to see an attorney before signing anything over.

Another perk of dealing with a reputable company that offers cash for structured settlements is their experience in working with others in similar situations. Hopefully, they will have entire divisions that can refer a new client to speak with older clients who have gone through similar transactions and reassure them of their decision to sell, or to remain as the sole receiver in a payout distribution agreement. Offering cash for structured settlement payments has become the most popular way for individuals to receive a lump sum of cash, if it is impossible for them to receive it in that method otherwise. Many times, an insurance company or an individual will not possess such a large sum of cash. Instead of being rejected for a request for one lump sum, third party organizations offer the service of payout for an individual in need of a larger sum at once. "When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou has vowed." (Ecclesiastes 5:4-5)

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Structured Settlement Buy Out

Structured settlement buy out can turn a future asset into cash. Advanced funding will provide the individual in a current financial tight spot with the capability of acquiring the funds to help eliminate financial problems. Being the recipient of a structured agreement doesn't mean one has to wait for periodic payments since many financial institutions provide a tangible way to receive those future payments now. A buyer of structured settlement annuity will look at the annuity contract and evaluate the potential to purchase. Reasons to sell a contract between an individual and an insurance company include better rates of return through other various investments, or better tax-efficient estate planning.

Current tax laws require that selling an annuity means being subject to paying income tax. Selling to a buyer of structured settlement annuity before the age of 59 & 1/2 may mean paying a 10% federal tax penalty. Get some legal advice and tax advice before making a final decision on a structured settlement buy out. Consider options carefully especially when the situation may call for freeing up assets to use for other needs. Some financial institutions online, offer a free, no obligation assessment from a specialist on staff. Compare several sources before signing a final contract.

Ask about tax-deferred accumulation of interest and capital gains when considering a structured settlement buy out. Compare the impact of paying income tax on withdrawals to taxes on dividends or capital gains from reinvesting dollars in stocks and bonds. Consulting a tax advisor on these types of issues would be a wise decision. Tax evaluation can be rather confusing so it is best to get some advice from someone who understands tax issues before finding a buyer of structured settlement annuity or selling a structured agreement. Realize that there may be tax consequences associated with receiving a lump sum amount.

Unexpected expenses can plague anyone at anytime and usually there is no warning before it happens. Being a recipient of a structured agreement will give some leverage during this time of decision. There are various reasons that people seek for a structured settlement buy out. Sometimes obtaining additional cash is the best option to find the light at the end of the tunnel. Pray about worries and trust God for the answers. Do some research online and consider all the options available before making a decision. "Be careful for nothing; but in every thing by prayer and supplication with thanksgiving let your requests be made known unto God. And the peace of God, which passeth all understanding, shall keep your hearts and minds through Christ Jesus" (Philippians 4:6-7).

It is true that a structured settlement buy out will provide a lump sum of cash now, however, it is also true that there is security in knowing that those settlement payments will come on time every month. When opting for a lump sum amount consider the possibility of being tempted to spend the money and not have any left for the future. When an injured person has long-term special needs those periodic payments provide some security for those needs to be met. Get some financial advice before finding a buyer of structured settlement annuity and weigh all the costs before cashing in.

Do some research and find a reputable company before signing a contract to sell an annuity. Obtain quotes from various companies and do business with the company offering the highest payoff. Companies that purchase structured settlements or annuities do so to make a profit off their purchase. Insurance companies may refuse to cooperate with the sale of a settlement and it may be necessary to obtain court approval. When a sale has to go through the process of approval through the court it can take up to 90 days to get the payoff. Consult an attorney before signing a contract; have the attorney look over the contract and see if the amount to be paid is adequate for the settlement.

When facing debt problems there may a solution by seeking a buyer of structured settlement annuity. The ability to receive a lump sum amount on an annuity instead of monthly payments may be the answer to paying off high interest credit card debt. The savings in interest alone could make it worth selling not to mention the savings in other fees credit card companies charge. Other reasons to consider cashing in might include paying for a divorce, starting a business, purchasing a home, paying medical expenses, tuition for college, among other things. With the ability to pay off outstanding debts or finance other endeavors, consumers find satisfaction by cashing in structured settlements or annuities. Some companies online offer buy outs on lottery winnings and advertise no costs or processing fees for services. Free quotes are available through most financial sources on the Internet.

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Structured Settlement Cashout

A structured settlement cashout is a program where the recipient of cash settlements is receiving installment money on a payment plan, but has decided that he or she would rather have the cash now. For many reasons, these installments may not be coming in on time and may not be enough to provide yearly living expenses. A recipient of an agreed upon amount of money due to a traumatic situation, and that is made in installments, may also find themselves in need for immediate cash, beyond the amount of the monthly or yearly payment plan. At times like these there are agencies that will offer a structured settlement cash payout.

If an income providing family member was disabled by a work accident, and after court proceeding, there was a settlement charged to the employer, the disabled worker may want to consider a structured settlement program. This type of payment plan can allow the disabled employee to continue to receive a salary comparable to what he or she was initially making. In this manner, the family income would not necessarily change. There could be larger amounts of money initially paid to the family in a structured settlement cash payout, to help pay for any medical bills that were incurred as a result of the accident. But, what happens if the one injured or in an accident decides later that he or she would like to have more of the cash, up front?

There are companies that actually purchase settlement cases. These agencies specialize in buying the charge from the owing organization and then offering payout options for installments to the recipient. This service can be especially helpful when there are deferred monies involved. Many times, a court has appointed a structured settlement payout, but the terms are not working well with individual needs. The companies that purchase settlements may also offer clients cash up front, helping with immediate cash needs and with the problems surrounding inflation.

Beneficiaries of settlement installment plans should know that the program is actually funded by an annuity, which has been issued through an insurance company. The agency responsible for the accident, damages, or injury will pay the entire sum to the insurance company. The insurance company is the agency that make the monthly, or whatever structure agreed upon payments. As the beneficiary of the annuity, most receiving payments can assign another party the entitled payments, such as with a company that offers a structured settlement cashout. There are some court agreements that do not allow the beneficiary to assign a third party as recipient, but speaking with attorneys and getting financial advise before signing any agreement is advised.

Any change in the original court documents will mean returning to court for approval. A structured settlement cash payout must be granted by a judge. First, before any cash is exchanged, a case must be petitioned and put on the court docket schedule. Documentation of why there is a change and why obtaining a structured settlement cash payout would be beneficial to the recipient is mandated. A judge will carefully weigh the best interest of the recipient and of his or her dependents in each individual case. If there is a court approval, the company offering a structured settlement cashout will generally wire the agreed upon cash directly to the beneficiary's financial account. This is rarely a quick action, and even when documentation is detailed and excellent, time for court, transactions, and approval can take up to ninety days.

Knowing what to do in the various options associated with a structured settlement cashout can be confusing. Often, an individual or family receiving large sums of money have no idea of how to manage it. It is a good idea to get professional help when receiving or planning a structured settlement cash payout. First, speaking with a trusted attorney or financial advisor is advised. This is a matter of careful prayer and consideration. "Be careful for nothing: but in every thing by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which passeth all understanding, shall keep your hearts and minds through Christ Jesus." (Philippians 4:6-7) Though there are good reasons to consider a structured settlement cashout, the Lord should be consulted. He is the ultimate provider of all things, and His Word promises that He will take care of His own.

To find a reputable agency that offers a payout for settlements, beneficiaries can ask for referrals from their attorneys or accountants. Also, there is more information about this process outlined in many articles on the Internet. Conducting a simple search can reveal many different agencies offering these services. Before making quick or hasty decisions, there should be a thorough investigation of the entire process and of the potential company that would be purchasing the annuity. Getting informed is truly the first step in making the wisest choice for anyone and for their family members.

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Structured Settlement Funding

Structured settlement funding was on the mind of the middle aged couple who had won a three hundred thousand dollar lawsuit and bought an annuity so that the wife could retire and take care of her aging father. But the elderly man had recently died and now the husband had been diagnosed with a potentially life threatening illness and had to quit working. The annuity provided the couple with about two thousand dollars a month, but it was not enough to take care of the medical bills beginning to pile up. So the two sat in an office of a factoring or transaction company that specialized in structured settlement transfer of lottery winnings, annuities, lawsuit judgments and other monthly payment providers. An agent of the company began sharing with the couple the advantages of getting a settlement funding transaction completed so that the couple's immediate needs could be met. The agent mentioned that the couple, with a financial plan to transfer monthly payments to a lump sum would have the advantage of being able to respond to their immediate financial needs. But there were some things he did not want to say, but the agent was mandated by law to disclose.

The Structured Settlement Protection Act of 2002 changed the way factoring or structured settlement transfer companies did business. Before that legislation became law, any person requesting allocated money be changed to a lump sum allocation was often taken advantage of by the companies offering to buy annuities or other monthly or yearly allocated financial plans. Between 1988 and 2002, factoring and transfer companies were at odds with the issuers of such things such as annuities, typically life insurance companies. Often, many holders of structured settlement money had very negative experiences with factoring and transfer companies, including having information withheld, and the fact that lump sum payments could affect, in adverse ways, the tax liabilities of the clients. The Structured Settlement Protection Act placed into law a number of safety nets for Americans facing the same issues as the couple.

The law mandated a number of safeguards for those wanting seeking structured settlement allocations. This legislation demanded that all transactions going through a factoring or transaction company as this couple was doing be approved by a state court, which would investigate to ascertain if the structured settlement transfer to a lump sum payment is good for the client and the client's dependents. Additionally, the issuers of annuities, the life insurance companies, were brought into the loop, contrary to factoring companies' standard policy of years past. Often, the life insurance companies were caught off guard when lump sum settlements were arranged, and the new owner of the annuity was discovered. The Structured Settlement Protection Act also called for the client receiving a lump sum payment to obtain professional counsel on every aspect of the transaction's affect upon the future quality of life for the client.

For the couple looking for immediate help, these safeguards meant not only peace of mind for what they were about to do, but also gave them an appreciation for all the factors going into a structured settlement transfer. After hearing all the information given to them by the agent for the factoring company, the couple decided to go and speak to one of dozens of counselors suggested by the brochures from the federal government. The counselor advised the couple to recognize that the factoring company had only one thing as their agenda, and that was to make money on their situation. To use a company that offered structured settlement funding, the couple would lose at least thirty percent of the value of their annuity. Would the transfer be worth it? "If any man come to me and hateth not his father, and mother and wife and children and brethren and sisters, yea and his own life also, he cannot be my disciple." (Luke 14:26)

Having gone through the structured settlement funding process so far, the couple decided that they still needed to have money now for the financial crisis that loomed in front of the pair. The next step forward was to petition the circuit court for an agreement to the structured settlement funding agreement with the factoring company. The court agreed to the transfer after having seen evidence that the agreement would not affect anyone except the husband and wife and that they had indeed talked to an approved financial advisor. The only remaining question was how long a wait they would have before they received the lump sum on which an agreement had been made. The factoring company told them it would typically be between eight and twelve weeks.

The couple went home that day, delighted that such an option had been afforded to the pair, and that they were privy to all the information that eased their minds. The wife was actually looking forward to returning to work, and began to brush up on the latest developments and skills needed in her vocational field. The husband actually looked forward to the treatments he was receiving because all medical bills not covered by insurance would be covered with the money they would soon have in the bank. For them, an allocated settlement funding company had offered and given the couple a new lease on life. Unfortunately, for many people before them, there were many cases of being taken advantage of, and even ripped off, but sometimes it takes trail blazers going ahead to make life better for those soon to arrive.

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Immediate Income Annuity

For some retirees, a single premium immediate annuity (SPIA) might be the best option for comfortable, stress-free investing and guaranteed income. There are many types of annuities, including fixed or lifetime period, nonqualified or qualified, deferred or immediate, and single or flexible premium. The SPIA in particular offers the annuitant the chance to receive their funds with interest via monthly payments immediately. "Deferred" postpones the payments to a much later date, possibly a decade or more away. The SPIA is called "single premium" because the annuitant must deposit a lump sum with the insurance company. In some cases, this is the best means to ensure that one has available income for the future. In other cases, this may not be the best option. A little research and professional advice will lead to the best decision.

A 64-year-old man wins a lawsuit and is awarded a lump sum of $105,000. He would like to retire and live off of the funds. His best bet could be an immediate income annuity or SPIA. A month after he drops the funds into the annuity, a monthly payment is deposited into his bank account. These equal monthly payments can continue for a set period of time such as 10 or 15 years (fixed) or can continue for the remainder of the man's life (lifetime). The choice between fixed and lifetime depends on the single premium amount, the age of the annuitant, and the interest that the insurance company agrees to pay. In this case, the 64-year-old with such a large single premium would best benefit from a lifetime annuity.

A 55-year-old woman wins $250,000 in the lottery after taxes. She is thinking about getting a single premium immediate annuity, so she can be retire early and still receive an income plus her pension. Yet, she owes $187,000 on her house and another $32,000 in credit cards and personal loans. "The rich ruleth over the poor, and the borrower is servant to the lender" (Proverbs 22:7). Truly, if this woman wants to stop being a slave to her debtors, she will want to spend this money getting out of debt and staying out of debt. With her debt erased, she can spend just a few more years working and then retire completely debt-free with her pension. In this situation, a SPIA isn't the best option.

Each situation is unique, but there are common threads in the need for an immediate income annuity. The person should already be retired or ready to retire immediately. Since this product is a very hands-off form of investing, some retirees may not like it. They might prefer to build a portfolio and actively buy and sell stocks to build up retirement. Also, the income from the annuity should be sufficient enough to support the retiree's needs. For most immediate annuities, the recipient needs to be at least 55. Additionally, many retirees decide to obtain a SPIA because they don't have a retirement plan or pension in place. It may be best to consider the benefits and disadvantages to weigh whether or not a SPIA would work for one's individual situation.

The benefits of a single premium immediate annuity are usually what attract people to them. If a large savings account is maintained, it must be claimed annually for tax purposes. On the other hand, a SPIA funds, depending on if they're pre-tax or not, can be tax-deferred or tax liability will be less overwhelming as it is paid in smaller installments. Another benefit is that the annuitant can be guaranteed a certain interest rate, and the payments are in a set amount that never decreases. Therefore, this option offers a sense of security for retirees. Not only that, annuitants don't have to stress over the stock market or worry about their money disappearing. Lastly, some companies won't charge fees for their investment products or services.

While there are benefits to obtaining an immediate income annuity, there are also some disadvantages. Annuities are tough to undo, and payment amounts are usually written in stone. Should some unexpected financial emergency occur, those funds placed into the annuity are virtually inaccessible. It is possible to sell an annuity to a settlement funding company, but this process can be costly and require the services of a financial professional or an attorney. Therefore, the annuitant should have an emergency fund or some easy-to-access investments in case something unexpected comes up. Although the tax advantages are a great perk when it comes to annuities, it may be wiser from a tax-savings standpoint to go with another plan. By meeting with a tax professional, the retiree can make sure that they actually will save on taxes in the long run.

As with any investment or retirement plan, retirees need to do their research and be sure that the plan is what's right for them. People and their situations are unique which explains why there are so many options besides the single premium immediate annuity. It's best to talk with a financial professional, even if his counsel costs a small fee. The financial professional should specialize in retirement investing. This person can usually lead a retiree to a reputable insurance company that offers a sound plan. Those who prefer not to meet with a financial counselor can research online and discuss possibilities and interest rates with different insurance companies. Whether it's an immediate income annuity or some other retirement investment, it's important to select a company that has a solid, long-standing reputation of excellence in investing.

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Immediate Annuity Quote

A fixed annuity quote is just a phone call or web page away for aging adults considering retirement. Online rate calculators are the quickest solution, giving interested persons an idea of how much money they need to invest now in order to secure a steady, safe retirement cash flow for the future. Before seeking an immediate annuity quote, however, buyers should take some time to learn about annuity options and the pros and cons of such an investment. This kind of plan doesn't work for everyone, but it can be an excellent retirement solution for many, providing a steady income that cannot be outlived.

Usually purchased with a one-time lump sum payment, a fixed annuity guarantees its purchaser regular, unchanging income for an agreed-upon period of time, usually until the annuitant's death. The amount of each monthly, quarterly, or yearly disbursement depends upon the initial amount paid to the insurance company, the annuitant's age and life expectancy, the age and life expectancy of his spouse (if applicable), and a few other factors. A fixed annuity quote will let interested purchasers know what to expect based on individual circumstances and help them to determine whether an annuity is a good option for their retirement plan. Generally, the older a person is and the larger the one-time payment he is able to make, the higher his periodic payments will be, which means that this kind of retirement plan is a good choice for persons with a reasonable life expectancy and probably a poor choice for persons who plan to stop working early and enjoy a long retirement. If a person has a very large amount of money to invest and does not want to be responsible for managing his own retirement allowance, he should consider a fixed annuity.

An immediate annuity means that the fixed payments begin within a month of purchase, so if a buyer does not want to retire for several years, he should choose the deferred option. An immediate annuity quote, however, will help those ready to retire now to decide how much money their lifestyles will require based on their ability to pay a certain one-time amount. In this way, the buyer is able to create his own retirement pension using money he has saved during his working years without the responsibility of managing it himself or the anxiety of not having enough money to finish out his retirement comfortably. There is a great deal of consolation in knowing that one's periodic payments are unchanging and will not stop coming until one's death, no matter how the economy is doing. A secure, steady income in one's retirement years can alleviate much of the stress involved in aging.

As the results of a fixed annuity quote will reveal, however, this option does have some drawbacks. It may not provide sufficient income for one's preferred lifestyle, for one thing; not everyone can consistently live on the same conservative amount every month, especially as the economy changes and adjustments must be made for inflation. A big concern is that purchasers are trapped in the income structure once they've bought: fixed annuities are irrevocable and cannot be cashed in. Also, if a person dies shortly after making the agreement, the insurance company gets to keep all of his money; fixed annuities cannot be transferred to heirs. In some cases, heirs can receive the balance of the initial payment or can receive the deceased person's periodic payments for a certain period of time, but certainly will not reap the full benefits of the investment.

Financial advisors often advise retirees to not place all of their funds into annuities, as these may not provide enough money when the economy is bad, will not benefit heirs, and do not have as much potential for increase as other alternatives. Annuities are very helpful because they provide steady, safe income until death, but there are other means of investment with more potential for profit. Still, most agree that getting an immediate annuity quote is an excellent idea for persons who are ready to retire and need assurance of security. They are largely tax free, relieve buyers of the burden of worrying about retirement funds, and enable many people to enjoy their retirement years without fear of outliving a savings account.

Before jumping online for a fixed annuity quote, buyers without much knowledge of economic and investment principles would benefit from doing some research. First, one might call an insurance helpline and ask for a full description of retirement options, technical terms, and the processes involved in securing pensions. Often, these organizations will mail the caller a guide to help them understand everything discussed over the phone. Next, one should consider all the options, compare the pros and cons of each, and perhaps even consult with a trusted financial advisor. The Bible says, "Where no counsel is, the people fall: but in the multitude of counsellors there is safety" (Proverbs 11:14), and this is certainly true when the security and comfort of one's elderly years are at stake.

An immediate annuity quote can be obtained over the phone or online, whichever method the buyer is more comfortable with. There are websites that will allow interested persons to compare quotes from several different insurance companies at once in order to determine which company offers the most beneficial plan for an individual. Of course, buyers need to be sure to only do business with a company that has a long-standing, solid reputation--a business that will be around long enough to provide all of one's retirement funds. With enough research, foresight, and careful planning, retirees can find a retirement plan that will give them confidence and freedom to enjoy the reward of many years of hard work.

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Structured Insurance Settlement

The structured settlement broker sat back in the chair and began thinking back to the first day the client in front of her came in for a consultation. The man, forty four years of age, had won a ten million dollar law suit against a tobacco company for medical expenses, lost wages and future earning potential, plus pain and suffering for his terminal case of lung cancer. He would only be around for another nine months at the most, and had four children and a wife that would be left after the man's passing. The cancer patient had been a smoker since his teens, and a civil jury agreed that the company showed no compunction to stem the commercials aimed straight at teenagers when the man was an adolescent in the 1970's. Within weeks, the fortunate but unfortunate man would be receiving a check for ten million dollars and now there was the question of how to proceed. Would a structured insurance settlement be the right thing for the family, or should he take the lump sum?

The man's wife was very keen on taking the lump sum, for even after taxes, the spouse would receive almost six million dollars. But there was a gigantic fly in the ointment. The dear wife could spend money like it was water, and the husband could envision her blowing the entire amount in about five years, starting with a shoe collection rivaling the wife of the Philippine dictator from years past. Then it would be on to an Olympic size pool for the kids and the SUV guaranteed in its ads not to get over seven miles to the gallon. The man's wife was a wonderful person, but there was a seven inch hole in her purse. And the settlement conference was in two days.

The structured settlement broker offered to be at this conference which usually has a very specific shape. After both representatives of the plaintiff and defendant speak, each side is taken into separate rooms and the negotiations begin as to how the judgment money will be paid to the plaintiff. Moving between the two rooms is a mediator that will carry information back and forth between the two sides. The structured settlement broker would have time to sit and talk to the potential client about wishes and hopes for the future, serving as a representative in favor of the structured settlement option, and sharing during the hours of negotiation as to what choices the client might have as part of an ss agreement. So the decision came down to monthly payments to the man's wife that might help her better manage her money, or allow her to have a large and very tempting amount in the bank. Pictures of designer shoes kept popping in and out of his head as well as his family running out of gas on the highway in that much too impractical SUV.

After hours of agonizing mental and emotional gymnastics, the dying man decided on a structured insurance settlement instead of a lump sum payment. In this particular case, the tobacco company agreed to purchase an insurance annuity that would give the wife a monthly check for the rest of the spouse's life. In deference to her wishes, the husband did have as part of the settlement five hundred thousand dollars put into a one year CD so that she could have emergency money if and when needed. Ya just gotta think shoes! "But rather seek ye the kingdom of God and all these things shall be added unto you." (Luke 12:31)

The structured settlement broker often is a chartered life underwriter which is the one of the highest achievements a life insurance broker can attain. When the broker negotiates the purchase of a large annuity with an insurance carrier, there is often a fifty-fifty split in the commission rate between the broker and the annuity carrier. Of course, in the proper client-broker relationship, full knowledge of this transaction is given to the plaintiff before the agreement is finalized. And in a structured insurance settlement, the commission is figured into the judgment so that it does not affect the plaintiff's recovered money. A structured settlement broker can also design the settlement in such a way that minimal tax burden falls to the plaintiff.

Sadly, the husband died almost at the nine month mark. In the first few years after his death, the wife did to live on the twenty thousand dollars a month she received from the annuity, but the cost of remodeling plans could not be afforded on that monthly stipend. One day, while watching a favorite daytime show, the widow saw a television ad for a lump sum payment of the annuity. The woman called the offices of the firm that made the offer and found out she could take a structured insurance settlement factoring transaction, which meant the widow could sell the annuity and receive a lump sum payment. After all was said and done, the once six million dollar annuity had become a two and a half million dollar lump sum.

The settlement broker was driving one day and saw one of those ginormous SUVs alongside the road. Four children and a very despondent mother sat on the grassy apron. Out of gas. Again from what the children said. he woman stopped and gave them a lift to the gas station. The widow asked if it was possible to borrow twenty bucks for gas. The broker said sure, and drove away with a smile.

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Large Funding Structured Settlements

A large structured settlement is a court appointed required payment in small increments over a predetermined period of time after the plaintiff settles in a law suit. For example, suppose a man was in a car accident. A truck driver ran a red light and the man was seriously injured so he decides to sue the trucking company's insurance company for the hospital bills as well as the income he lost being out of work with injuries. The trucking company settles with the man, and they agree on the sum of $150,000. The insurance company doesn't have $150,000 to just pay the man outright, so insurance company requests that the payment be structured. The court approves the payment extensions and the parties agree on paying the man $2500 per month for the next five years. Thus, funding structured settlements are far easier and more economical to do. Instead of having to come up with $150,000 right away, the insurance company only has to deplete its funds of $2500 a month. There are many benefits for both parties involved. One may be wondering if this type of payment arrangement is right for their case. By exploring all options, each person can make a wise decision.

One benefit is that the terms can be negotiated. The money can be paid over any amount of time as long as both parties can come to an agreement. Funding structured settlements can vary from months to decades, depending on the amount of money and the circumstances. This works to the benefit of both the plaintiff and defendant in the case. The defendant has extra time and less pressure to borrow to pay. The plaintiff receives the money in manageable amounts. Many people tend to lose control of large sums of money. With a large structured settlement, the plaintiff receives small amounts so the money doesn't all disappear at once. People have the tendency to spend more when they have more so money is depleted much more quickly when paid in a lump sum compared to payment over a period of time. This is especially true for cases involving college-age or younger plaintiffs. Young people usually don't have the financial responsibility and experience to handle large amounts of money responsibly. Thus enabling more money will be available for future expenses such as college courses and emergency or unforeseen medical complications.

This type of payment distribution also has tax benefits. Usually, when obtaining a large structured settlement , whether it be through a contest, lottery or law suit, the money is taxed up front. With a large structured settlement, tax payments are reduced or even sometimes completely non-existent. Most often, though, one can expect to pay some amount of taxes. Despite this possible tax-free benefit, there are a few disadvantages. People who want to invest large sums of money from their payments won't be able to do so under funding structured settlements. These investments tend to have a greater return than smaller investments made with smaller payments. Also, major purchases, such as the purchase of a home or car, will still require a loan rather than the large upfront payment that would be possible under a lump sum amount.

Before getting involved as a plaintiff or defendant, there are some factors to consider and think about. First of all, consult a lawyer or a financial consultant. They will be able to help decide what settlement plan is best for each unique situation. The lawyer may make a referral to a financial counselor in deciding payment. Knowing the attorney's intentions will also help. Some attorneys receive kickbacks for enrollment from certain firms and agencies that hold the annuity where the payments will come from. Make sure the lawyer isn't also working for the insurance company. This can be a conflict of interests. Watch out for excessive commissions being charge by the insurance company as part of funding structured settlements.

A serious factor to consider when choosing is the life expectancy of the injured party. A ten-year term might be good for the defendant, but the plaintiff may not expect to live ten years with the injuries they have. Also, it may be a good idea to work with multiple insurance companies should the plaintiff be at fault. This is good preparation should one of the insurance companies fail to pay their part of the large structured settlement or go bankrupt. Overall, it is important to trust God in each situation. If one really is at fault, take responsibility for all pertaining actions. If one really is the victim, don't be afraid to stand up and seek compensation for the resulting suffering. "Offer the sacrifices of righteousness, and put your trust in the LORD" (Psalm 4:50). As with any decision involving money, it is important to think carefully about accepting any large structured settlements. No matter what side one is on, it is important that each trust those who are on their side. There needs to be an attorney or insurance company that can be relied on.

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Structured Settlement Broker

A qualified, structured settlement broker can help anyone who is interested in selling his cash award settlement in return for one, lump sum. For those who have won large judgments as a result of negligence, malpractice or other misconduct on the part of a third party, it can sometimes be difficult to know just how to handle all that money. Large settlements are many times allowed to be broken up into payments over a period of years in order to provide relief to the losing defendant. In order to receive a large, lump sum that can dramatically add to a plaintiff's living conditions, many seek the help of a structured settlement buyer who can purchase the original contract with court approval and pay off the seller with a large, cash sum.

This can prove to be an advantage to those who need substantial cash relief in their life as well as for those who merely want to invest or use the money early on without waiting years for the full pay off. "Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom. For with the same measure that ye mete withal it shall be measured to you again." (Luke 6:38) A structured settlement broker can provide information, expertise and pay off options that can help a recipient of an award make a wise decision. However, there are brokers who do not have the expertise and professionalism to transact a good deal, so be careful in choosing brokers. Check out several brokers before making a decision on which one to do business with since there are many brokers who are less than ethical.

Those that have been in the business for a long time obviously will have a track record that can be accessed, so ask for credentials, references and some past cases to check up on. A good structured settlement buyer will be listed in good standing with the Better Business Bureau. It is easy to find information through them, so start there for initial information on any broker. Qualified brokers are well versed in the different options for structured settlements which include a lump sum pay off, temporary annuities, life contingent awards and designated annuities. Lump sum pay offs are naturally most people's preferences when it comes to settlements, but many times court awards give some deference to the defendant's ability to pay as well as the damage that may be occurred to a business if a huge payment is siphoned off immediately.

Temporary annuities allow for payments to be made for the number of years that a recipient is alive, but will automatically stop upon his or her death. Beneficiaries are not entitled to subsequent payments on an award and all responsibilities of the defendant are null and void. A life contingent award is a lump sum that is due to be paid on a certain, future date. If a recipient is alive on the appointed date, it will be paid. As a structured settlement broker will advise, if the person dies before receiving the pay off, beneficiaries will also not be entitled to the award. Designated annuities are relatively common in many cases and entitle the awarded plaintiff a projected number of payments as well as continued payments to beneficiaries in case of death.

Understanding which option is the best for the client is the responsibility of a qualified, structured settlement buyer. Many companies that specialize in purchasing award contracts from clients carefully analyze the benefits and disadvantages of each option as well. The goal is to negotiate the best deal for all parties involved and reputable brokers can be helpful in the process. Many clients are willing to give up part of a large award in order to receive a significant lump sum that will change their lives. Running the risk with certain types of awards such as life contingency awards are not what many people wish to endure so selling a contract can be the best option. In any case, a recipient of any size award needs to carefully determine what the short term and long ranges goals are for the future and wisely calculate the best way to use the settlement contract for their advantage.

Most people who have been awarded monetary judgments have already endured severe strain and can ill afford to make an unwise decision regarding their future finances. Though less common, there are those who are the winners of large, prize giveaways that may have an extraordinary impact on a lifestyle. A structured settlement buyer can be of extreme importance for these fortunate people as well in helping them determine what avenue to take. Whether with large, cash prizes or court appointed awards, a structured settlement broker may be needed to insure the best financial deal for the future.

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Liquidate Structured Settlements

The sale of a settlement structured allows a person to have access to all or part of their funds through a 3rd party company or organization. For a fee, they will transfer the annuity or insurance policy into their name and disperse all or part of the funds to the original owners as directed. Following a lawsuit, after winning a large amount of money, or an insurance annuity, the two parties involved in the payment of the funds agree on a settlement. For instance, should someone win $100,000 in the lottery, the lottery may pay out the $100,000 over 10 years or 120 months. Rather than paying the $100,000 at once, the amount is dispersed over time. This is a long term settlement. Many people find that when they liquidate structured settlements, it works to their advantage more than maintaining the long term payment option. There are companies that will purchase the payment plan from the owner. The 3rd party company will pay the owner the amount in nearly any payment plan preferred. This comes in handy when someone who normally would get $1,000 per month from a long term plan suddenly needs $5,000 to pay a medical bill. The sale of a settlement structured can be beneficial, but all of the disadvantages must be weighed as well.

Before even considering a sale, the plan owner needs to look at their state laws regarding the process. Many states have laws in place that restrict how to liquidate structured settlements. Should one have a tax-free policy, the plan will be subject to certain federal regulations so a person will need to be aware of these. However, when selecting a reputable company to handle the sale of a settlement structured, the company will know all of the laws, both federal and state, that apply and they will be sure not to break any. Using wisdom before even approaching a 3rd party company, entails consulting a lawyer about what laws are on the books. To liquidate structured settlements from annuities, one will need to talk to the insurance company involved. Some will not allow such an acquisition. Examine the agreement and terms of the annuities to see what policies the insurance company has in place or simply talk with a representative.

Long term payment plans are rigid and often difficult, if not impossible, to adjust, even if a person's financial circumstances become difficult. With the sale of a settlement structured, the owner has more flexibility. They get to choose a new payment plan and have the option of how much of their policy they want to sell. Thus, one can see many benefits after they liquidate structured settlements. One may be in a financial bind and more cash upfront can solve the problem quickly. One may want to make a large purchase, such as a home or car. For whatever reason, it may be impossible to obtain the loan for the purchase. With the money from a sale of the policy, the money can be obtained to pay for the home or car in full. When there is a medical emergency or bills are piling up, it is helpful to have access to large monetary sums. With money in hand, the choice to spend it now or save it for later is available. Investing large sums and receiving a greater return compared to only the small investments that can be made through long term payments is an option. Should one need money to invest in a business opportunity or to pay for college, the sale of a structured settlement can fund such needs.

Along with benefits, there are some disadvantages to liquidate structured settlements. Settlement companies don't work for free. They stand to make a profit in the sale of a settlement structured so there are fees attached. In addition, the sale must not only meet federal and state laws, it also has to be approved by the courts. Therefore, there is a chance that the sale could be denied. Another disadvantage is that there are companies out there that will try to steal the settlement and disappear. It is important to select a company that is licensed, insured and bonded with all decisions backed by a legal court order. Choose a company with years of experience and a professional staff. Get reviews online and ask around for recommendations. Remember that God is in charge of all things, including the ability to plan a financial gain. "He hath filled the hungry with good things; and the rich he hath sent empty away. He hath holpen his servant Israel, in remembrance of His mercy;as he spake to our fathers, to Abraham, and to his seed forever" (Luke 1:53-55). No matter what happens, God has control and is at the helm of a Christian's life. He works all things together for each ones own good.

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Loans For Structured Settlement

Loans for structured settlement can be a lifesaver to someone needing cash sooner than the court ordered payments can begin, or to someone who simply doesn't want to wait out the structured payment plan. Anyone who wins the lottery, a personal injury lawsuit, a wrongful death suit, or workers' compensation case that results in being awarded a large sum of money, the payment will most surely be set up as a structured payout. Laws have been passed to this effect so that people unused to managing large sums of money will be forced to budget expenditures instead of going on a spending spree. This happened many times before such legislature was passed. The funds intended to take care of a person's medical bills over a lifetime were spent in other ways and the medical bills didn't get paid after all.

Generally speaking, this system works well and is in the best interest of the receiver of the funds. However, in the case of an elderly lottery winner or winning plaintiff, it makes little sense to have payments stretching over twenty years. That person would rather have the funds now, and invest them for the benefit of his heirs. A structured settlement loan may be what that person needs. There are companies that will, for a fee, advance the full amount won to the winner, and accept assignment of the payments in return. This way the winner receives the money, and either the defendant or the state lottery commission repays the lender with the structured funds.

Structured settlements are a guaranteed source of funds paid to the claimant or his/her family on a tax-free basis, according to Section 104(a)(2) of the U.S. Internal Revenue Code. Structured settlements usually are set up in two parts. An up-front cash payment is made to the plaintiff/winner to cover immediate expenses, then the balance is set up in regular payments over a period of time. Sometimes there is a need for more of the funds to be available much sooner, and that's where loans for structured settlement come in. It must be kept in mind, however, that it will probably take about 90 days for the loan to be processed and funds distributed. Court approval must be obtained, although in most cases personal appearance isn't required.

Some companies offering loans for structured settlement will work with a client to buy all remaining payments, a partial number of payments, or a percentage of the payments. There are variables related to the payments that will determine what fee will be charged for handling the transaction. The financial rating of the insurance company making the payments, the size of the transaction and how far into the future the payments extend, all affect the amount the borrower will receive.

If the plaintiff has already received a few payments, and then something happens that makes him want to have the entire rest of the payments soon, one of these lenders can be brought into the picture for a structured settlement loan. Actually, arrangements can be made for a specific portion of the payments if that would satisfy a person's needs. Perhaps five or six payments would be enough to get a person through whatever difficulties have arisen, and then the regular payments could be resumed.

With so many ways to set them up, loans for structured settlement cases can fit the needs of just about anyone involved in this kind of proceeding. When the lottery winner or triumphant personal injury plaintiff is a young person, structured payments are a good thing. They will provide assurance that the recipient will have funds for a good many years to meet his needs and make investments that will assure a comfortable retirement. Since so many young people have little experience in handling large sums of money, the system is a safeguard. Some of them may not want to look into a structured settlement loan, but hopefully, there are wiser heads to advise them. Wisdom is indeed a much needed commodity. Scripture mentions it many times. "My mouth shall speak of wisdom; and the meditation of my heart shall be of understanding." (Psalm 49:3)

Anyone considering loans for structured settlement payments should, of course, consider carefully what they intend to do with the large sum of money they will receive. Lottery winners are usually written about in the local newspapers, and once it is known that the winner has been awarded this phenomenal sum of money, there will be all sorts of scam artists trying their best to relieve a winner of that money as fast as possible. The temptation to be caught up in a too-good-to-be-true scheme will be less if the money on hand is not so great. A structured settlement loan, if not really needed, sometimes puts common sense and planning for tomorrow way below the "wants" of today.

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