Cash For Life Insurance Settlements

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Life insurance is a popular policy investment sold by various insurance companies. In order to safeguard personal interests and those of the family, a large number of people opt to purchase a life insurance. In due course of time, if a policyholder is diagnosed with a terminal illness, the insurance company is legally bound to recompense the person. In case of an incurable ailment, policyholders need to spend on expensive medical treatment, to ensure comfort for the remaining years of their life. These medical expenses can be huge and policyholders may choose to cash in, on their life insurance. This is termed as a 'viatical' settlement and a number of investors are willing to pay for them.

In this agreement, a terminally ill policyholder sells his life insurance at a discounted rate. This settlement provides ready cash and is a legal exchange. People opt for such settlements as they eliminate the risk of handing over personal assets for cash. In such an exchange, policyholders need to name the investors as beneficiaries in case of death. They cash in on such investments, when the person dies. The investors are only concerned with their profitability or return on investments and this depends upon the life expectancy of the policyholder.

The rate of return is unpredictable and in case of longer life expectancy, returns are lower. A number of people choose cash for life insurance settlements. This is logical, as risking other assets for cash jeopardizes the situation of the surviving family members. The need for cash is optimum when diagnosed with a terminal illness. Money is needed for treatment that can help slow or partially control the spread of the disease. Investors examine medical records, diagnosis and prognosis to confirm the seriousness of the illness before providing cash for life insurance settlements.

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Cash For Your Structured Settlement

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Sometimes when a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner consulted in association with the settlement, will propose paying the settlement in installments over time rather than in a single lump sum. When a settlement is paid in this manner it is called a "structured settlement".

There are some settlement purchasing companies who are interested in paying the individual a lump sum amount for receiving the rights to receive a structured settlement; the lump sum amount offered is a discounted amount. The individual who gets the lump sum amount can use this amount for buying a house or automobile or pay for schooling etc. Under normal circumstances the payment would be done on the fixed intervals agreed to between the two parties and the individual would not be able to purchase items such as house, car etc.

The recipient of a settlement may have his own reasons for considering cashing of the structured settlement. Some possible reasons are as follows.

1. He needs large amount of cash due to sudden financial problems
2. He might have found an investment opportunity which delivers a better long-term profit.
3. He may be planning to diversify his investment portfolio instead of depending on a single annuity

Another major advantage of selling the settlement is that future annuity payments will have reduced value because if inflation increases; a lump sum amount at present acts as a hedge against inflation

The purchaser of annuity has a profit motive in his mind plus he must consider the inflation effect in the value of the annuity. Considering these two aspects, he will be purchasing the annuity at a discounted rate and this rate will be equivalent to the bank rate at the minimum level. In fact, he may charge more taking his profit level into account. These are complex issues and a common man will find it difficult to understand the implications of various decisions. It is advisable to speak to an independent adviser who has the capability to analyze the pros and cons of selling the annuity before taking a final call on this. The adviser will take into account the individual's income stream, hard assets and debts and decide whether a lump sum payment now is better or worse than receiving annuity payments under the structured settlement.

There are various options one could consider for settlement with settlement purchasing companies. These are as follows:

1. Full Structured Settlement Payment as a lump sum payment at a discounted rate
2. Partial Settlement Payment as a lump sum payment
3. Shared Structured Payment

The individual may sell only a part of his annuity in lieu of getting a lump sum amount required for meeting his immediate needs; in this case he will be able to get regular annuity payments at a reduced rate. The decision for this must into consideration the individual's requirement, debt loads, educational costs, potential investment or business opportunities, etc. and a proper financial plan to be created.

In case the current debts of the individual are large and there is an immediate pressure to repay such debts one has to necessarily resort to a full payment option which will relieve him of the burden. The individual wanting to sell his equities must be careful while selling annuities that are structured to pay out long-term as the inflation and currency depreciation provisions ensure that they don't pay out as much overall as short-term annuities.

In case the current debts of the individual are small and there is immediate pressure to repay such debts one may resort to a partial payment arrangement which is a better option. Under these circumstances the individual can trade a certain number of payments to be exchanged for a lump sum paid to the individual up front. Alternately one can sell off a portion, or all, of a particular payment that is due for payment in the near future, but not soon enough to meet the individual's debt payment or expense needs. This can be explained with an example. Suppose you have to pay your child's tuition fees now and your annuity is likely to mature after another three months you could try for a partial payment.

The judgment on structured payment has been awarded through the court and hence any change on court's verdict requires court approval. Hence it is essential to get court approval in order to sell all or a portion of your structured settlement. Further, there could be state and federal restrictions on transfers of settlement. Before taking any final decision one should consider a number of potential annuity purchasing companies, keeping in mind the discount rates offered, the background and references of particular companies and the amount of cash needed and to be obtained, versus the amount of the annuity, if any, to be retained by the individual.

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Cash For Your Structured Settlement

Image : http://www.flickr.com

Sometimes when a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner consulted in association with the settlement, will propose paying the settlement in installments over time rather than in a single lump sum. When a settlement is paid in this manner it is called a "structured settlement".

There are some settlement purchasing companies who are interested in paying the individual a lump sum amount for receiving the rights to receive a structured settlement; the lump sum amount offered is a discounted amount. The individual who gets the lump sum amount can use this amount for buying a house or automobile or pay for schooling etc. Under normal circumstances the payment would be done on the fixed intervals agreed to between the two parties and the individual would not be able to purchase items such as house, car etc.

The recipient of a settlement may have his own reasons for considering cashing of the structured settlement. Some possible reasons are as follows.

1. He needs large amount of cash due to sudden financial problems
2. He might have found an investment opportunity which delivers a better long-term profit.
3. He may be planning to diversify his investment portfolio instead of depending on a single annuity

Another major advantage of selling the settlement is that future annuity payments will have reduced value because if inflation increases; a lump sum amount at present acts as a hedge against inflation

The purchaser of annuity has a profit motive in his mind plus he must consider the inflation effect in the value of the annuity. Considering these two aspects, he will be purchasing the annuity at a discounted rate and this rate will be equivalent to the bank rate at the minimum level. In fact, he may charge more taking his profit level into account. These are complex issues and a common man will find it difficult to understand the implications of various decisions. It is advisable to speak to an independent adviser who has the capability to analyze the pros and cons of selling the annuity before taking a final call on this. The adviser will take into account the individual's income stream, hard assets and debts and decide whether a lump sum payment now is better or worse than receiving annuity payments under the structured settlement.

There are various options one could consider for settlement with settlement purchasing companies. These are as follows:

1. Full Structured Settlement Payment as a lump sum payment at a discounted rate
2. Partial Settlement Payment as a lump sum payment
3. Shared Structured Payment

The individual may sell only a part of his annuity in lieu of getting a lump sum amount required for meeting his immediate needs; in this case he will be able to get regular annuity payments at a reduced rate. The decision for this must into consideration the individual's requirement, debt loads, educational costs, potential investment or business opportunities, etc. and a proper financial plan to be created.

In case the current debts of the individual are large and there is an immediate pressure to repay such debts one has to necessarily resort to a full payment option which will relieve him of the burden. The individual wanting to sell his equities must be careful while selling annuities that are structured to pay out long-term as the inflation and currency depreciation provisions ensure that they don't pay out as much overall as short-term annuities.

In case the current debts of the individual are small and there is immediate pressure to repay such debts one may resort to a partial payment arrangement which is a better option. Under these circumstances the individual can trade a certain number of payments to be exchanged for a lump sum paid to the individual up front. Alternately one can sell off a portion, or all, of a particular payment that is due for payment in the near future, but not soon enough to meet the individual's debt payment or expense needs. This can be explained with an example. Suppose you have to pay your child's tuition fees now and your annuity is likely to mature after another three months you could try for a partial payment.

The judgment on structured payment has been awarded through the court and hence any change on court's verdict requires court approval. Hence it is essential to get court approval in order to sell all or a portion of your structured settlement. Further, there could be state and federal restrictions on transfers of settlement. Before taking any final decision one should consider a number of potential annuity purchasing companies, keeping in mind the discount rates offered, the background and references of particular companies and the amount of cash needed and to be obtained, versus the amount of the annuity, if any, to be retained by the individual.

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Cash For Life Insurance Settlements

Image : http://www.flickr.com

Life insurance is a popular policy investment sold by various insurance companies. In order to safeguard personal interests and those of the family, a large number of people opt to purchase a life insurance. In due course of time, if a policyholder is diagnosed with a terminal illness, the insurance company is legally bound to recompense the person. In case of an incurable ailment, policyholders need to spend on expensive medical treatment, to ensure comfort for the remaining years of their life. These medical expenses can be huge and policyholders may choose to cash in, on their life insurance. This is termed as a 'viatical' settlement and a number of investors are willing to pay for them.

In this agreement, a terminally ill policyholder sells his life insurance at a discounted rate. This settlement provides ready cash and is a legal exchange. People opt for such settlements as they eliminate the risk of handing over personal assets for cash. In such an exchange, policyholders need to name the investors as beneficiaries in case of death. They cash in on such investments, when the person dies. The investors are only concerned with their profitability or return on investments and this depends upon the life expectancy of the policyholder.

The rate of return is unpredictable and in case of longer life expectancy, returns are lower. A number of people choose cash for life insurance settlements. This is logical, as risking other assets for cash jeopardizes the situation of the surviving family members. The need for cash is optimum when diagnosed with a terminal illness. Money is needed for treatment that can help slow or partially control the spread of the disease. Investors examine medical records, diagnosis and prognosis to confirm the seriousness of the illness before providing cash for life insurance settlements.

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Structured Settlement Cash and Working With a Broker

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If you were a claimant in a lawsuit and were awarded monetary damages, you may have agreed to a structure settlement instead of one large lump sum payment. This payment provides regular installment payments to you over time. This type of financial agreement has many advantages and was beneficial to you at the time that it was set up. However, it is possible that circumstances changed, and you need a large lump sum payment to meet new financial obligations. It is possible to sell your settlement amount and the best way to do that is through a broker.

If you are currently receiving installment payments because you agreed to a settlement, and now you are in need of a greater sum of cash, you can sell your structured settlement and receive structured settlement cash. You can choose to sell the entire structured settlement for one lump sum minus the fee that will be charged to complete the deal by a structured settlement broker, or you can sell only a portion of the structured settlement. In that case, you will continue to receive installment payments for the monetary amount that remains part of the structured settlement. You will receive a lump sum payment for the part of the structured settlement that you sell.

When you get structured settlement cash, it is like getting an advance on the money that is owed to you. The broker charges a fee for his services that can range from 10% to 50% of the money you want advanced. However, even though you are receiving your money at a discounted rate, you now have the use of that money immediately.

Personal injury lawsuits often involve settlements for very large sums of cash. Cases involving medical malpractice and wrongful death can often have settlements that range in amount from six to seven figures. These large settlements can have major tax ramifications so it is beneficial to the claimant to receive these funds in installment payments over time. Structured settlement payments spread over time involve little or no tax at all. In addition, installment payments guarantee a steady flow of income on a regular basis. Many individuals find it easier to manage money in installments rather than receiving a large lump sum all at once.

Circumstances in your life can change, and you may find that the amount of money you receive on a regular basis from the structured settlement does not allow you to meet your obligations on larger bills such as the purchase of a new house or education expenses. If you receive structured settlement cash in a large lump sum, it will make it possible for you to meet these new financial obligations. In addition, you may notice that the installment payment amount is not keeping up with inflation, and you may decide that receiving cash now is better than receiving installment payments in the future.

If you decide that selling your settlement money is in your best interest, you need to find a reputable broker who can help you through the process. A broker acts as a consultant, provides an assessment, prepares calculations and plays an active role during negotiations to sell the structured settlement. The information that a good broker provides during negotiations helps both sides reach an equitable agreement.

To help the claimant, the broker prepares a financial analysis and then determines the present value cost of the settlement. He or She provides expert support and information in calculations involving Medicaid and SSI as well as issues involving income tax. Because a great deal of financial expertise is required, apart from the brokers help your accountant or bank would be a good source for a recommendation.

As you work with a structured settlement broker, you should find out what the total cost of selling the settlement payment will be and how long it will take to sell the same. It is important for you to have multiple deals to choose from so make sure your broker can provide details about multiple opportunities. This will help insure that you are getting the best deal possible. Throughout this selling process, it is vitally important that the channels of communication between you and your broker be open. You should be able to communicate with your broker easily and often, if necessary.

You should retain the services of a qualified broker who is registered with the United States Department of Justice. These settlements are set up by the courts and each state has its own laws. In addition, there are federal guidelines that must be followed under the tax code. You can receive structured settlement cash when you sell your structured settlement, but the process requires court approval. Complicated transactions like selling a structured settlement should always be reviewed by an attorney who will represent your best interests.

It is important to research the broker's qualifications and experience. The broker you choose should be registered with the United States Department of Justice and be affiliated with at least one insurance company. The Civil Division of the United States Department of Justice actually publishes a "List of Annuity Brokers Who Meet Minimum Qualifications for Providing Annuity Brokerage Services in Connection with these settlements. The list for any specified year is in effect until it is replaced by another update. This list of brokers is alphabetical by their last name and provides the city and state where they are located.

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Cash For Life Insurance Settlements

Image : http://www.flickr.com

Life insurance is a popular policy investment sold by various insurance companies. In order to safeguard personal interests and those of the family, a large number of people opt to purchase a life insurance. In due course of time, if a policyholder is diagnosed with a terminal illness, the insurance company is legally bound to recompense the person. In case of an incurable ailment, policyholders need to spend on expensive medical treatment, to ensure comfort for the remaining years of their life. These medical expenses can be huge and policyholders may choose to cash in, on their life insurance. This is termed as a 'viatical' settlement and a number of investors are willing to pay for them.

In this agreement, a terminally ill policyholder sells his life insurance at a discounted rate. This settlement provides ready cash and is a legal exchange. People opt for such settlements as they eliminate the risk of handing over personal assets for cash. In such an exchange, policyholders need to name the investors as beneficiaries in case of death. They cash in on such investments, when the person dies. The investors are only concerned with their profitability or return on investments and this depends upon the life expectancy of the policyholder.

The rate of return is unpredictable and in case of longer life expectancy, returns are lower. A number of people choose cash for life insurance settlements. This is logical, as risking other assets for cash jeopardizes the situation of the surviving family members. The need for cash is optimum when diagnosed with a terminal illness. Money is needed for treatment that can help slow or partially control the spread of the disease. Investors examine medical records, diagnosis and prognosis to confirm the seriousness of the illness before providing cash for life insurance settlements.

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Cash For Your Structured Settlement

Image : http://www.flickr.com

Sometimes when a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner consulted in association with the settlement, will propose paying the settlement in installments over time rather than in a single lump sum. When a settlement is paid in this manner it is called a "structured settlement".

There are some settlement purchasing companies who are interested in paying the individual a lump sum amount for receiving the rights to receive a structured settlement; the lump sum amount offered is a discounted amount. The individual who gets the lump sum amount can use this amount for buying a house or automobile or pay for schooling etc. Under normal circumstances the payment would be done on the fixed intervals agreed to between the two parties and the individual would not be able to purchase items such as house, car etc.

The recipient of a settlement may have his own reasons for considering cashing of the structured settlement. Some possible reasons are as follows.

1. He needs large amount of cash due to sudden financial problems
2. He might have found an investment opportunity which delivers a better long-term profit.
3. He may be planning to diversify his investment portfolio instead of depending on a single annuity

Another major advantage of selling the settlement is that future annuity payments will have reduced value because if inflation increases; a lump sum amount at present acts as a hedge against inflation

The purchaser of annuity has a profit motive in his mind plus he must consider the inflation effect in the value of the annuity. Considering these two aspects, he will be purchasing the annuity at a discounted rate and this rate will be equivalent to the bank rate at the minimum level. In fact, he may charge more taking his profit level into account. These are complex issues and a common man will find it difficult to understand the implications of various decisions. It is advisable to speak to an independent adviser who has the capability to analyze the pros and cons of selling the annuity before taking a final call on this. The adviser will take into account the individual's income stream, hard assets and debts and decide whether a lump sum payment now is better or worse than receiving annuity payments under the structured settlement.

There are various options one could consider for settlement with settlement purchasing companies. These are as follows:

1. Full Structured Settlement Payment as a lump sum payment at a discounted rate
2. Partial Settlement Payment as a lump sum payment
3. Shared Structured Payment

The individual may sell only a part of his annuity in lieu of getting a lump sum amount required for meeting his immediate needs; in this case he will be able to get regular annuity payments at a reduced rate. The decision for this must into consideration the individual's requirement, debt loads, educational costs, potential investment or business opportunities, etc. and a proper financial plan to be created.

In case the current debts of the individual are large and there is an immediate pressure to repay such debts one has to necessarily resort to a full payment option which will relieve him of the burden. The individual wanting to sell his equities must be careful while selling annuities that are structured to pay out long-term as the inflation and currency depreciation provisions ensure that they don't pay out as much overall as short-term annuities.

In case the current debts of the individual are small and there is immediate pressure to repay such debts one may resort to a partial payment arrangement which is a better option. Under these circumstances the individual can trade a certain number of payments to be exchanged for a lump sum paid to the individual up front. Alternately one can sell off a portion, or all, of a particular payment that is due for payment in the near future, but not soon enough to meet the individual's debt payment or expense needs. This can be explained with an example. Suppose you have to pay your child's tuition fees now and your annuity is likely to mature after another three months you could try for a partial payment.

The judgment on structured payment has been awarded through the court and hence any change on court's verdict requires court approval. Hence it is essential to get court approval in order to sell all or a portion of your structured settlement. Further, there could be state and federal restrictions on transfers of settlement. Before taking any final decision one should consider a number of potential annuity purchasing companies, keeping in mind the discount rates offered, the background and references of particular companies and the amount of cash needed and to be obtained, versus the amount of the annuity, if any, to be retained by the individual.

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