Once a person has sued for medical malpractice or personal injury, they may win a substantial monetary compensation. However, instead of taking their money as a lump sum, they may opt for a structured settlement which is a negotiated insurance or financial arrangement that will see them get their money in periodic payments over a given period. Certain factors determine whether you should opt for a lump sum or go for a structured settlement agreement after a lawsuit. Such factors include your tax liability, how you will spend your money and if you will require any help managing your money. Usually, an insurance company will take care of the funding for the periodic payments, and this is through an annuity. The structured settlements are offered in such a way that they will provide a dependable income stream as well as some financial security to the injured person in the case.
In some instances, the recipient of the structured settlement may choose to sign their rights to the monthly payments over to a factoring company to get a lump sum amount. A point to note is that the lump sum in such instances is usually significantly lower as compared to the total of the periodic payments you expected to get overtime.
Reasons for Selling Structured Settlement Payments
A good percentage of people have incurred debts from their credit cards as well as other debts with high interests. Such people often find themselves using their lump sum payments to pay off such debts with high interests. Another reason is the need to acquire housing and homes for their family. Here, you will find customers using the proceeds of their sale to buy houses, make renovations and stop foreclosures. With the rise of health care costs, some people find themselves having to trade in their periodic payments for a lump sum that will help them pay for medical expenses for themselves or members of their family. To ensure that their children can secure a bright future, some parents use their lump sum to pay for tuition and education. Factoring companies recommended by Fundfirst Capital can help you make the right decision on selling future annuity payments.
How to Choose the right Structured Settlement Company
Reputation: When looking for a structured settlement company, you should consider its reputation, and you can check for this with their record with the relevant government bodies. Alternatively, you can search for online reviews about complaints and how they were sorted out.
Interest to help you: When looking to sell your structured settlement, you need proper treatment, with the company treating you respectfully and with patience. They should also be willing to answer your questions and provide you with the necessary support throughout the entire process.
Experience: You should also choose an experienced company with a good track record of being successful. Their experience will also help you get your money quickly because it will not be easy for their request not to receive approval.
Ability to Quickly get Quotes: You should only invest in a company that will use its resources and time in your case as this will help you get your structured settlement payments in court with ease.
Review of Structured Settlement Companies
- J.G Wentworth Company is an established company that offers direct-to-consumer access to various financing solutions through venues like structured settlement, annuities, refinancing and mortgage lending, among others. One of the best attributes of this company is that you can get cash as you wait for the judge to make a determination of your case. This can be quite helpful because money often gets tight during the period that you have to wait for the court to determine your case.
J.G Wentworth can do this by introducing you to companies that offer pre-settlement funding that will help you sort out your issues as you wait for the case to settle.
- Olive Branch Funding is a company that makes use of its know-how and experience to help its clients receive a lump sum amount of money in exchange for their structured or annuity payments. They also tailor a specific plan for their customers to fit their goals concerning the sale of their future payments.
- Seneca One is a company that prides itself in taking a personalized approach towards solving the immediate cash problems of its clients. They will also help you get better long-term solutions to the problem by exploring more opportunities and options. You will also get a chance to sit with a representative of the company to discuss any burning questions you may have about their services.