How Structured Settlement Companies Work
How Do Structured Settlements Work?
Structured Settlements are used by courts in many different types of cases to replace or supplement income that was lost through the fault of someone else. Since they’re conducted by a third party, it also means someone doesn’t consistently need to associate with the person or entity that wronged them.
1-Chronovo
2-New York Life
3-Berkshire Hathaway
4-AIG
5-Prudential
6-Liberty Mutual
The structured settlement issuing companies function in a manner that shields owners as well. Structured settlements don’t affect an individual’s ability to qualify for other forms of aid. Meaning, if someone is set to receive a settlement, the money they receive from it does not affect their ability to qualify for Medicaid, Social Security and other disability benefits.
The income from structured settlements is also shielded from taxes. This flexibility is why so many litigators recommend structured settlements to their clients rather than a lump-sum payout after winning a case.
Types of cases that can result in a structured settlement:
1-Severe Personal Injury
Research shows that the more serious the injury is, the more likely a structured settlement will be awarded instead of a lump sum.
2-Workers Compensation Cases
If you’re hurt on the job, a court can award you a structured settlement to pay for the damages.
3-Wrongful Death
When a court decides someone is at fault, the surviving family members of a victim can be awarded a structured settlement.
Your Right to Sell Structured Settlement Payments
If you have a structured settlement you have a right to sell your payments. Facing a crisis like foreclosure or not having transportation to get to a job, many structured settlement owners choose to sell some or all of their payments. When a structured settlement is set up, it’s typically tailored to meet the needs of the injured or surviving person. Unfortunately, sometimes those needs change and the structured settlement owner needs access to his or her money right away. Selling future payments allows someone to get access to the money they need quickly.
Federal and state laws exist to protect consumers against unscrupulous companies. People who need quick access to the funds tied up in a structured settlement turn to purchasing companies to buyout their future payments in exchange for a lump sum. Unfortunately, there are companies out there waiting to prey on people who are in a desperate situation.
When working with a structured settlement buyer, make sure you have all of the end-of-deal fees in writing and no attorney or compliance fees are passed onto you. Bottom line: if your quote says you should get $65,000 for selling your payments that is the amount that should be listed on the check.