Structured Settlement and Annuity settlements are designed to provide a steady stream of income over a long period of time. If bad investments are made with a lump sum settlement, then they can vary in a few years of your life.
One of the advantages of receiving a structured settlement over a lump sum settlement is that a steady stream of income is divided for you over an extended period over several years.
A structured settlement is tax-free through the federal and state levels during its pay periods, but a lump sum of money invested is not tax-free.
As stated before, some bad investments could mean that a lump sum settlement won't last a lifetime.
A million dollars in an account seems like it could last forever, but after medical bills and living expenses this lump sum settlement can't last nearly as long as an annuity or structured settlement would.
The second advantage of a structured settlement is the vulture factor. Many people take advantage of older people who have a sum of cash. A lump sum settlement can be dangerous if the necessary precautions are not taken to protect a loved one. With a structured settlement this factor will not come into play. A fixed income will provide a worry-free environment for the individual receiving periodic payments.
The third benefit of a structured settlement is the expense to the defendant. Many defendants will settle out of court to avoid the big lawyer fees usually created by an ongoing legal battle. The argument is that the defendant could win the case. This is true, but the defendant could also back out much further than if they just settled out of court with a structured annuity.
The benefits of a structured settlement that were listed above are not the only ones. This article is intended to describe the important facts of a structured settlement.
Structured Settlement Quotes does not create structured settlements. We are a structured settlement exchange company. Financial times change for different people at different times, we offer a service of collecting a structured settlement, offering a one-time payment in exchange for those future payments. There are many reasons to use this option, but it is not recommended by Settlement Quotes to use this financial path if it is not needed.
FOR TO ASK FOR A REFUND CASH MONEY ANNUITY NOW?
For most people, the option of taking an annuity payment seems to make a lot of sense. Whether the income is from lottery prizes or a life insurance policy, it offers long-term financial security, and stability, right? At least, that is the theory. By assuming annuity payments, you are guaranteed to receive a certain amount of income for a certain period of time, allowing you to plan ahead and not have to worry about being without income. However, life has a way of turning things around, and annuity payments don't always work out the way you anticipate.
Stacking Accounts
Why collect a cash annuity? Many people find that one of the reasons they need this money is to be able to pay the amount of the bills - medical or otherwise. A medical problem can wreak havoc on your finances, and while annuity payments will help pay your bills over time, they cannot meet your immediate need. This is particularly true in situations where you have lost your job and creditors are harassing you, or your mortgage company is threatening foreclosure. In these situations, annuity payments could be of great help.
Where to find help
The real question here is how to withdraw money from the annuity. What should you do? You cannot go to the bank and ask for money in advance. Technically, all the money that belongs to you is held by the debtor - and is officially his until he has to pay you, despite your annuity contract. However, you have other options. There are companies that can buy your annuity in exchange for a certain amount of money. This gives you access to almost all of your funds immediately, to use as you see fit. You can pay the bills, repair your house, repair your car (or get a new one), or put the money towards your children's education.
The problem is that not all buyers are the same. Different buyers will offer different amounts in exchange for your pension, and you should never close a deal with the first company to make you an offer. You need to make an informed decision and compare your options. This is where you enter a brokerage - with the right help, you can receive quotes from several companies, compare each of the offers, and thus choose what best suits your needs.
WHAT YOU SHOULD KNOW BEFORE SELLING YOUR ANNUITY
Annuity payments certainly help offset your financial situation, but sometimes they may not be enough. If only there was one way you could get a one-time payment instead of small, ongoing payments. Actually, there is a way to do just that. You can sell your annuity. However, that is not necessarily the best option for you - there are things you need to know before selling your annuity to make sure you are making the right decision.
Consult Local Laws
One thing to do before anything else is to check your state laws regarding annuity sales. Each state has its own requirements, in addition to the federal laws governing the transfer of annuities, and you will need to make sure that you agree to all of them. If necessary, contact an attorney to help you understand the process, your obligations, and the laws that apply to you.
How much money?
Another consideration here will be the amount of money you can get for your annuity. Don't think that you are going to get 100% of the money you have to collect - It doesn't work that way. Most finance companies offer a percentage of what you come in, but there are other mitigating factors, including how the payments are set, the total amount of the annuity, and much more. You will also find that finance companies vary just like banks in terms of the terms they offer, so taking the time to review all the options and companies and compare them against each other is very important.
Get multiple offers
Given the importance of comparing the different offers, you will surely find several options when you decide to sell the annuity. This can be difficult to do on your own. However, there are stock brokers who can make the process simple and easy. These agents provide the means to start receiving offers from buyers within minutes, and you don't need to locate and contact financing companies on your own.
With the information above, you will find that making the decision about whether to sell your annuity is simple. Of course, there will be a lot of decisions to be made, but working with a reputable broker and following the advice mentioned above will ensure that you make an informed decision about the sale.
WHAT YOU NEED TO KNOW ABOUT FINDING ANNUITY BUYERS ONLINE
Annuity selling is not new - this has been going on since structured settlements have been around, even though it has become more common in recent years. For those who find that their structured settlement does not help with a crippling financial situation, finding annuity buyers is important. How do you do that, however? In fact, it can be as simple as going online to find annuity buyers, but there are a few things you should know.
Search Informed
Before looking for buyers on the internet, it is important to arm yourself with the necessary information. For example, not believing everything they say in late night commercials. The Annuity Sale requires more than just a phone call. The entire process can take more than a month, and is subject to the decision of a judge who determines if the sale can advance. Searching for annuity buyers online should only be done after you have thoroughly researched your situation.
Don't Look For Annuity Buyers On The Internet By Yourself
Another important tip for looking for buyers on the internet is that the process is simpler and more efficient when you have help, but, nevertheless, do not seek help from the buyers themselves. Rather, you should work with a broker who can help you connect with more reputable buyers. Working with a broker does not mean that you will start receiving offers immediately, but rather that you can work with some of the best buyers on the market. Searching for yourself only means that you will have to trust your own experience, which may not be as broad as it should be.
VET agents
Of course, you cannot choose a brokerage house blindly. Searching online to find annuity buyers is a tricky situation given the legal complexities involved. You need help from experts from a company with years of experience under its collective credit. Make sure the company you work with has a verifiable history dating back several years. You should also make sure that they are full members of the Better Business Bureau and that they work on your behalf, and not on behalf of the buyers. While there are brokers to connect the two parties, it is necessary to have your interests protected and a good broker will do exactly that.
As you can see, there are several things you need to know before starting an online search to find annuity buyers.
WHAT IS AN ANNUITY?
An annuity in the most general sense of nature is a financial arrangement between two parties where one organization pays the other. This type of transaction usually takes place between an insurance company and an individual. Some examples of insurance companies that offer annuity products are Allstate, Safeco, Monumental Life, AIG, New York Life, and Met Life.
Annuities fall into several categories, including fixed vs. variable, immediate vs. Deferred, unique premium vs. flexible premium, qualified vs. unqualified
Classifying an annuity can be confusing, as they can be classified into all of these categories at once. An example might be a qualified fixed single premium lifetime annuity. In other words, this annuity benefits which means it will be invested in a tax-advantaged retirement plan like a 401k or IRA, the fixed category means the annuity will be funded by a single payment, and the fixed categories mean half life that the annuity will last until the death of the policyholder paying in guaranteed increments earning a fixed amount of interest.
The benefits of an annuity
The first benefit of an annuity is income for life. This type of annuity is called an annuity and can be set up to earn a fixed amount of interest and payment on either monthly, semi-annual or annual payments.
The next benefit is the tax advantages of having an annuity. Capital gains and investment income invested in annuities are not taxable until withdrawal. Tax deferral on income-generating investments is very important because there are no limits to the amount that can be invested in an annuity, unlike many other financial vehicles.
The third advantage of owning annuities is the benefit of your heirs. A common misconception about annuities is that when an annuity is funded and the policyholder dies shortly after payment the insurance company keeps the entire investment. This can happen, but this can be avoided by purchasing a guaranteed annuity. This guarantees an income to the beneficiaries after their death for the assigned amount of configuration year during the period of creation of policies.
Settlement Quotes does not sell insurance products. SQ is an annuity factoring company providing people who sell an annuity with a viable option to get out of a long investment underneath. This option should only be used in serious circumstances.
WHAT IS THE DIFFERENCE BETWEEN ANNUITY AND STRUCTURED SETTLEMENT?
It's tempting to put annuities and structured settlements in the same category. After all, they have quite a few similarities, including regular payments over a set period of time. However, they are actually very different, and the way the federal and state laws that handle these two financial products are also very different. What is the difference between an annuity and a structured settlement? Let's take a closer look.
A LOOK AT STRUCTURED SETTLEMENT
Structured settlements are exactly what they sound like. These are generally the result of a lawsuit involving personal injury or liability, and represent an acknowledgment in favor of the plaintiff. The defendant has been found guilty or has accepted guilt in lieu of going to trial, and the award amount has been converted from a lump sum into a series of payments over time. They are called deferred payments.
A LOOK AT ANNUITIES
The difference between an annuity and a structured settlement is that annuities are generally the financial tools available through insurance or investment companies. Lottery prizes often fall into this category as well, if the person has opted for the annuity option rather than the cash sum. An annuity is an investment in which the investor makes a profit in addition to the original investment amount, and may have different beneficiaries. There are a wide range of types of annuities.
WHAT YOU NEED TO KNOW
As you can see, the difference between an annuity and a liquidation is very important when you really want to delve into the subject. How does this affect the owner of the annuity or structured settlement?
A large part of how you are affected will be determined by where you live and what state laws apply to the sale of your product. In most cases, states do not allow the sale of structured settlements, but annuities are sometimes a different matter. The law can be very complex when it comes to selling these types of financial tools, and you need an expert to help you navigate these murky waters.
Perhaps the best advice for anyone considering an annuity sale or structured settlement is to work with a trusted agent who understands the law. The broker must be an accredited member of the BBB, and must have a long history of offering robust solutions for clients and helping them get the best deal for their settlement or annuity.
WHAT IS A STRUCTURED SETTLEMENT ANNUITY?
A structured annuity settlement is a financial vehicle that includes periodic payments, provided that the plaintiff in a personal injury liability lawsuit replaces a cash payment settlement. This type of financial tool can only be configured with a licensed settlement planner. (Settlement Quotes does not create these insurance products.)
A structured settlement is set up by purchasing an annuity through a life insurance company such as Metlife or Monumental Life Insurance Company. This annuity can be a monthly, semi-annual, annual or lifetime payment from the claimant. These periodic payments are tax-free and are a great source of fixed income for an individual after a personal injury liability case.
Many people wonder if they can receive a one-time cash payment after they start receiving their structured settlement annuity payments. The answer is no, you cannot go back to a cash settlement for the total. You do have options however. Settlement Quotes provides services to people in this situation. We will offer you a sum of cash for your structured settlement from other companies.
This is not always the best option for many people. A discount rate will be applied to your structured settlement to calculate your present value of your structured annuity to calculate your cash settlement. Due to the time value of money, you will only receive a partial amount in the lump sum. After a court approval process the lump sum payment will remain tax free.
Quotes Settlement only recommends using this inexpensive option if you have other financial assets that can provide financial support for your family. Many people pay off their debts, send their kids to college, or make a down payment on a house with the money they receive from the factored structured settlement.
There are many benefits to keeping your settlement structured. Quotes Settlement recommends seeking the advice of a financial professional before factoring payments through a structured settlement factoring company. A structured settlement can be used as a source of income when it comes to applying for a loan. This option must be tried first before attempting to receive a one-time payment.
SHOULD I SELL MY ANNUITY?
If unforeseen circumstances have caused a financial crisis for you and your family and you need a cash flow, selling your annuity or settlement payment may be the solution to your problems. Those who cannot meet their mortgage payments or have unexpected medical expenses should examine all their options. It is important to protect other assets or sources of income, so you need to calculate the potential risks and benefits. If selling the annuity is the best way out of financial difficulties, there is help for you to get the best price.
When multiple companies or investors compete to buy annuity payment rights, you have a better chance of getting the best price. If you simply approach a company, they will give you a take it or leave it price and you may not know if you are getting the best deal. In this particular industry, many companies use tactics like low-ball in the hope that they will accept their minimum offer which in turn will maximize their profits. Using an exchange such as Settlement Quotes LLC helps eliminate this type of tactic and will help you get the best price for your future structured settlement payment rights.
The first thing to do is find out the potential value of your annuity. This will give you the information you need to decide if it's worth the sale and, if so, what is considered a good price. Settlement Quotes Agreement provides calculators that can help you determine the value of your annuity. Once you have found the value of your future payments it is time to decide if it may be a better option rather than cashing your annuity. Other options may include:
bank loan
borrowing money from friends or family
sale of other assets
check with local Credit Unions
If you are wondering, should I sell my annuity, consider your other assets. If selling the annuity can save your home, avoiding excessive indebtedness or paying medical bills or education will be worth it. With rates at historic lows, the cost of taking advantage of a structured settlement or annuity is much cheaper now than it has ever been, and possibly never will be. There may be better options so it is always best to consult with an attorney or financial advisor before making any final decisions.
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