What is a structured settlement?
Recent developments have seen people result to use of structured settlement to resolve a personal injury lawsuit as opposed to the previous lump sum settlement process. This begs the question; what is a structured settlement? And yes, what benefits does it bring to the plaintiff? These questions are bound to pop up as we address this topic. A structured settlement is a negotiated insurance or financial arrangement where the claimant agrees to receive periodic payments as compensation rather than getting all the money at once. This guarantees a stream of income for the claimant within the agreed time. Although it might be offered by the defendant or demanded by the plaintiff, is it crucial that both parties arrive at an agreement. This entire process is monitored by a consultant who then uses the money to purchase an insurance cover for the injured individual. After that, the insurance company makes periodic payments to the insured.
How to sell a structured settlement
Selling of structured settlements in exchange for a lump sum is a trend that has been on the rise in the recent days. While periodic payments look like an awesome idea, some people find it hard to keep waiting for the next payment. This has pushed people to sell their structured settlements to companies which are established purposely for that. Although there are numerous reasons why people opt to sell their structured settlements, the common reasons people have cited include the need to repay college loans, the need to start a business and sometimes a desire to clear medical expenses.
How do you go about the selling process? To sell your structured settlement, all you have to do is get in touch with a reliable and well-established company which deals with buying of structured settlements. You need to be careful while selling your structured settlement to avoid getting engulfed into a financial crisis after you have already sold it out. For that reason, you need to ensure that you sell it to a well established and reliable company. Basically, the process involves tons of paperwork after which a judge is supposed to approve the sale and then you get your cash. That’s how it goes! And yes, you can either sell the entire structured settlement or just sell a portion of it.
How to choose a reliable structured settlement company:
Given their high numbers, getting a reliable structured settlement company is quite a task. This is because one needs to be careful so that they do not lose their money to a scam. For your own safety, you need to ensure that you employ services or a representative. And yes, the entire process needs to be taken to the court for a judge to approve it. Let’s look at some factors you need to consider:
- Their reputation: This is a really crucial aspect that needs to be looked at keenly. A company’s reputation will give you heads up on what to expect once you start working with them. If you discover that the company has had a bad reputation, it is advisable you avoid them like a plague. After all, reputation is a clear reflection of what a company stands for and how it operates.
- How long have they been in business: You need to also consider the amount of time this company has been in this business. This form a good basis for you to analyze their performance and form a solid and accurate opinion about the quality of services they offer.
- The amount of time they take to release payment: Time of the essence; there is no doubt about that. After all, the reason why one would want to sell their structured settlement is because they have an urgent need for money. For that reason, you need to ensure that you work with a company that does not take ages to effect the payment.
- JG Wentworth: With 25 years in this business, this company has proven quite reliable. If client feedback is anything to go by, it is safe to say that they have been able to build a good reputation throughout the years.
- Olive Branch Funding: This is yet another company whose reputation speaks volumes. Having been on the market for quite some time, Olive Branch Funding is a trusted structured Settlement Company.
- SenecaOne: SenecaOne is also a great company whose impressive services have placed it at the top of the market. If you are looking for a reliable company, it is one of them.
In a nutshell, a structured settlement is a daunting affair that requires utmost care. Armed with this information, I believe that you are fully equipped to make the right decisions.