Did you know that 81 of the top 100 companies in America have legal clauses stating that consumers cannot sue them in federal court? Not every company has this protection which is why consumers have reaped structured settlements.
Structured settlements are for those who have been wronged by a company. These contracts offer guaranteed payments over time to help with medical bills, debt, etc.
What happens when you try to sell a structured settlement? Read on to find out.
Structured Settlement Annuity Contracts
Structured settlement agreements provide payments over time, usually years, but the plaintiff can decide how the money is distributed and how much they receive each year.
You can delay structured settlement benefits until you retire or opt for an initial lump sum. When you choose the latter, you will also receive smaller payments overtime to help with debt relief and bill payments.
Benefits will act as additional income but the payments might decrease or increase throughout the term that was agreed upon. Different settlements come with their own payout options.
If you choose a lawsuit payout structured settlement, you’ll benefit from the most freedom. However, these lump-sum agreements also come with high risks.
Once the terms of the contract are established, there is little you can do to change them. Yet, they are flexible during the setup process.
Structured Settlement Payouts
The structured settlement pay structure for lump-sum payments involves the courts. Although this process can take up to 60 days, it is better than waiting years to receive payments, especially when you need cash right away.
This is what you can expect from the process:
Finding a Purchaser
First, you’ll need to find the right company to purchase your structured settlement. If you need help finding a trusted buyer, you can hire a financial advisor or seek help from your lawyer.
Right way funding employees are knowledgeable about this process as well.
Once you find a purchaser, get a quote from them to determine the discount rate that they offer. You’ll want to keep as much money as possible, but the average rates are between 9 and 18%.
The discount rate will depend on the structured settlement value.
If the quote sits right with you, proceed to the next step and submit your paperwork. This is necessary so that buyers can access your contract.
You’ll need to provide certain documentation such as tax forms and identification.
Present Your Case
Before you receive a settlement payout, you must present your case to a judge. One of the structured settlement benefits is that there are laws in place that prevent you from making a bad decision.
This brief hearing will help you obtain court approval so that the process of transfer can take place.
Getting Cash for Your Structured Settlement
Receiving cash for your structured settlement can benefit you in times of need.
Selling your structured settlement is not always the best option which is why it is essential to have professionals backing you up. You’ll also be protected during the court process.
After your structured settlement pays out, you’ll be well on your way to receiving cash in advance. For more articles about financial contracts and more, check out the other posts on our blog.