How a structured settlement annuity works

A Structured Settlement is essentially an agreement under which an insurance company agrees to pay an individual a predetermined amount of cash for a fixed length of time if the individual meets an accident. The documents generated in a structured settlement include an agreement, a qualified assignment, an annuity application, a court order if a claim is made by a minor, and an annuity policy.

Payments for a structured settlement annuity can be made for the duration of the life of the claimant. The amount paid can comprise of equal installments, installments of varying amounts, and lump sums. The payments from a Structured Settlement Annuity are free from income-tax and are guaranteed by contract. Since a structured settlement annuity is meant for long-term financial security, it is important to get an assurance of the credentials of the annuity provider.

The periodicity of payment is entered into the settlement agreement. Factors that individuals can consider in deciding upon the date of commencement of payment, duration, and periodicity include monthly expenses, present age, extent of hazard in occupation, and retirement plans. In order to ensure that the payments remain tax-free, the structure of payments should not be altered once it has been agreed upon by both parties. In the case of a qualified assignment, the insurance company making the payment can transfer its obligation for payments to a third party.

There are issues that one should understand before opting for a structured settlement agreement. If payments are made to an estate, they are free from income tax but subject to estate tax. Purchasing a structured annuity can affect the availability of ready money with an individual.

State and federal laws govern the closing of a structured settlement. The closing process usually gets completed in 3-6 months. Federal laws stipulate that a court order be obtained by either the customer or the funding company that is purchasing the payment stream so that there are no tax liabilities. The manner in which the court order is obtained is regulated by various "Structured Settlement Protection Acts", which are in force in 36 states in the United States.

A disclosure statement is made available to a customer 3 to 14 days before he receives the transfer agreement. The disclosure statement mentions the amounts to be paid to the customer and their due dates; the IRS Discounted Present Value of the amount at that given point in time; the Gross Advance Amount and the Annual Discount Rate; disclosures desired by the state; and a list of the fees and commissions incurred.

It is advisable to avail attorney advice before going in for a. In fact, in some states, it is a precondition to acquiring a structured settlement annuity. However, depending upon the laws being used for the transaction, customers do have the option of waiving legal representation in the Transfer Agreement or obtain an Estoppel letter from their attorney.

The funding company commences payment to an individual after acknowledging the assignment and receiving a court order. The payments start 30-45 days after the receipt of the court order.

Getting Cash Now From Your Long-Term Structured Settlement Annuity

If you have a structured settlement in which you receive your personal injury lawsuit award or settlement over time, you might be able to "cash out" the settlement. To do this, you sell some or all of your future payments in exchange for getting cash now.
Read on to learn what a structured settlement is, what it means to cash out your settlement annuity, and the process for doing so.

What Is a Structured Settlement?

When you win or settle a personal injury suit, you may have a choice to take your award as a one-time lump sum payment or as a structured settlement, which is a series of smaller payments over a period of years. Many people choose a structured settlement for its tax advantages, to avoid difficulties of managing large sums, or to ensure a stream of income when it's needed most. (Learn more about structured settlements.

Structured settlements are often designed to take into account the your future income needs, ongoing medical bills, your income from other sources, and other upcoming financial obligations like college tuition for your children. Structured settlements cannot, however, account for all financial challenges. Although your settlement may pay you $10,000 each year for 30 years, at some time during the payout period, you may wish to tap into those future payments to cover a present need.

Cashing Out Your Settlement Annuity

In order to cash out your settlement annuity, you sell your right to receive certain payments that are due under your settlement agreement. The companies that buy the rights to these payments, and give you cash, are called factoring companies.
Example. Under the terms of your settlement agreement, you are paid $50,000 per year for 20 years. After ten years of payments, you need cash right away and cannot wait for your next settlement payments. You contact a factoring company. Under the agreement with the company, you get $20,000 in cash now and in return the factoring company will get your next two settlement payments, for years 11 and 12. Those payments total $100,000. Once the factoring company has received its two payments, the annuity payments revert back to you, and you will receive the payments for year 13 and beyond.

When Will You Get the Money?

The commercials make the process sound quick and easy, but in almost every state you must get approval from a judge in order to sell your future payments to a factoring company. The review is designed to ensure that the request and the terms of the cash-out are in your best interest. The process, therefore, can take a month or more.

Will the Court Approve Your Request to Cash Out Your Annuity?

When you go before the judge, you will probably be required to justify your request. Using the money to pay medical bills or buy a new car may be acceptable. On the other hand, the judge may think that taking a luxury vacation or investing in your brother-in-law’s get-rich-quick scheme is not a good enough reason to sell future payments for less than their value. Even if you need the cash-out to pay ordinary living expenses, a court may be reluctant to approve your request.

How Much Money Can You Get If You Cash Out?

The amount you can cash out of your future settlement payments depends on many factors. These can include:

• your age
• your health
• the state in which you live
• the number and size of the payments you intend to sell
• the financial health of the company that owns your settlement annuity
• your reason for wanting the money now
• your future financial needs, and
• the difference between the amount of the payment you’re selling and the amount you’ll receive, also known as the discount.

Shop Around for the Best Terms

Financial experts will encourage you to shop around and talk with several companies to get the best deal, remembering that the best deal is not necessarily the one that claims to be the fastest. Instead of relying on television ads, consult with your attorney or a financial planner for referrals to reputable companies. Your financial planner or attorney can also help you run the numbers to evaluate the consequences of selling your future payment stream.

Consider Other Resources First

Finally, consider looking for alternative sources for the cash you need before you commit to selling your settlement. If you have other assets, like a home with equity or a retirement account, it may be more cost effective for you to borrow against those assets than to cash-out a future guaranteed payment. Even personal loans or cash advances on your credit cards are likely to cost less if you are disciplined about paying them timely or using your future settlement installment to retire the debt.

Best Price of Structured Settlement Cash

Best Price of Structured Settlement Cash – People love to use the structured settlement because it can be great support for securing their income in long term. Structured settlement can be sold easily anytime they need a lot of money immediately especially for their urgent need. People need the money for structured settlement selling immediately but it does not mean that they will accept any value offered for their structured settlement cash. Of course they want to sell it with the best price and there are some ways which can be used for ensuring that they sell the structured settlement with the best price.

It is better to ask other people who have experience with selling structures settlement about the recommended company for structured settlement selling. It is important to find a great company which has good reputation and trustworthy for getting the best price of their structured settlement selling. They can also use the internet for getting more information about review as well as testimonial of the company. Shopping around of course is also necessary because people can make comparison of the offered price from several companies to get the best price.

After finding top listed companies, people need to get the quotes from every company for getting the best rate. It is necessary to have careful consideration for each offer of the structures settlement.

Have You Been Awarded a Structured Settlement Annuity?

Many times people are awarded a structured settlement annuity and not even know what it is. A structured settlement annuity is payments that come from legal action or a law suit. 

  People are far from perfect, and many get involved in minor incidents such as a wreck or other legal action resolving from not paying bills or other reasons. Once the judge reaches his verdict the person or company having to pay the money may not have all the money at once to pay so they will settle on a structured settlement annuity. 

There are a lot of insurance companies that specialize in annuity policies which allow for them to talk with the other insurance company involved and they will change the monthly payments into a lump sum which will allow the person to pay the insurance company back instead of the person that the money is owed too. The insurance company will act like a bank for the person that is owed the money. 

There are many different reasons that one may choose to sell their structured settlement annuity such as needing money to make the bills, a down payment on a house or a car. The reasons may vary but at least there is cash for structured settlements. 

There a few different steps involved when you want to sell the annuity such as following the written guidelines and disclosures to a T. Then once the amount has been reached the parties involved must mutually agree then it has to be brought before a judge who will approve or disapprove on the plan. If the judge approves then the money can be settled and everyone can move on. 

As with anything there are always pros and cons with a structured settlement annuity. A pro is having the extra income especially if you have been laid off or have no income due to an accident. This can also be turned into a con because people rely on the the money and when it stops flowing they are once again struggling. Anytime you have questions regarding a structured settlement annuity consult with a broker or your attorney.

Structured Settlement Annuity

A structured settlement is essentially a financial agreement whereby compensation from an insurance settlement is paid through an annuity via regularly scheduled installments over. Structured settlement annuity sell all or just a portion of your future settlement payments from your annuity for a lump sum cash payout or a more flexible deferred payment plan. What is structured settlement annuity : financial planning a national leader in providing fast cash now service from your structured settlements and annuities. Structured settlement: lump sum of cash for structured settlements we can help you get money now for your annuity find out how you can sell your annuity today call 1-888-594-1195 to get started. Annuity/structured settlement what is structured settlement annuity part of the series: financial planning: annuities a structures settlement annuity is usually the result of litigation in which one party.

Prosperity partners, inc we buy structured annuities & payments  annuity buyouts what are annuity buyouts annuity buyouts by structured settlement companies jg wentworth and peachtree financial two leading note buyers is when they purchase the. Annuity settlement cash payout for structured payments it is important to consider life expectancy in association with any structured settlement, and to consider whether it is appropriate to enter into an annuity. Lump sum of cash structured settlement company let us guide you step by step through the procedure of selling your structured settlement payments, lotto and casino winnings or annuity payments for a lump sum today. Sell your structured settlement annuity payments client first learn what a structured settlement is in plain english find structured settlements company, payments, broker, annuity and loan info.

What is a Structured Settlement Annuity?

What is a Structured Settlement Annuity?

A Structured Settlement Annuity (SSA) provides tax-free, periodic payments over a period of time, specifically designed to meet an injured party's needs. Specialized consultants facilitate the settlement process, as well as help design and negotiate the structure. 

Why choose a Structured Settlement?

Benefits for the injured party:

• Features customized design: Payments are specifically tailored to meet the injured party's particular financial needs over a defined period.
• Emphasizes stability: Payments are designed to help meet the claimant's current and future financial needs.
• Promotes security: Structured settlement provide the dependability of a highly rated financial institution.

Benefits for the defendant:

• Leads to faster settlements
• May reduce costs
• Avoids Jury trials
• May allow for tax deduction (self-insured)

Pacific Life is a member of the National Structured Settlement Trade Association

This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state, or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. Insurance product and guarantees, including annuity payout rates, are backed by the financial strength and claims-paying ability of the issuing insurance company and do not protect the value of the variable investment options.

During the recession, many people were searching for cash and liquidity to stay afloat. Even as the economy improves, there are those who have a need for money and will turn to some unusual places to get it.

Selling annuities, structured settlements, scheduled lottery payoffs or other ongoing payments for cash became more popular during the recession. But for those still feeling a cash crunch, this tactic is seen as a potential option.

Unless the financial predicaments are dire, most financial advisers recommend against cashing in annuities or structured settlements. Selling off an annuity can trigger surrender charges as high as 10 percent, and those who sell before age 59 1/2 can also face federal taxes and penalties. Structured settlements are attractive because they generally provide tax-free income for life.

Yet, sometimes cashing in is the only option. That $500 monthly payment from an old accident may have helped with medical bills early on, but if the beneficiary lost his job and fell behind on some bills or had to make significant costly repairs to his home, a lump-sum payout of $50,000 may seem quite enticing.

Payments Annuities Cash, Tips for Selling Your Structured Settlement

Persons who want cash for annuity payments can sell their structured settlement to companies or lending institution. However, that is with such a risk. It's necessary to understand how this sort of financial deal works and even more important to examine  the company you choose to sell to.

To obtain cash for structured settlement annuity payments is a rather complicated operation and requests the help of a structured settlement annuities specialist. This can either be a lawyer or experienced who has been well coached in this path. You can begin the operation by communication with the company who set your structured settlement or you may prefer to work with another individual.

When you decide to sell your structured settlement annuity payments to a private investor or financial institution, you give them the permission to coming payments in exchange for a lump sum of cash. Structured settlement Annuity payments can be sold entirely or in a part. For example, if your structured settlement payments are for thirty years, you can sell one to thirty years of payments.

The first action to get cash for annuity payments needs you to estimate how much money you want. Most of people sell their structured settlement payments to pay off debt, medical expenses or college tuition. Others need cash for investment such as buying houses, stocks and bonds or real estate.

The second action needs you to collect your structured settlement payments details. The investor or financial institution will require knowing the name of the life insurance company backing the annuity payments, along with the determinate dates, the amount of every payment and how many remaining payments.

In addition, you will want to inform the investor of how much money you want to keep and how many payments you want to sell. These details provide the note buyer with the present day value of your structured settlement annuities.

The investor will check the data and call you to discuss various payment choices. Private investors who expert in structured settlements usually have access to a number of annuity buyers and will be able to direct you to those who offer top dollars for future annuity payments.

The first discussion will last near about one-half hour of your time. You need to take it easy with the investor and should hunt this chance to ask questions and get references.

Before you try to get cash for annuity payments, take your time to conduct thorough research. Analyze various note buying companies and talk with more than three experts before choosing. This will help ensure a positive experience when obtaining cash for your structured settlement annuities.