By Katrin Freeh on September 19 2018 11:47:34
Licensed brokers and attorneys would be able to assist in selling a structured settlement in an appropriate manner since they are specialized in this field. It is important to take their advice before selling either a part or whole of a structured settlement as this might result in a bad judgment on part of the individual.
Consider the legalities before selling a structured settlement, as some might not have the option of being sold earlier for a lump sum. Also, when the negotiations take place, some contracts might put up the restriction on sale of the structured settlement. Since structured settlements help in tax savings, it might make the person liable to pay tax after the settlement is sold. Also, if the settlement is being sold to raise cash for an emergency, it is possible that the insurance company might make an offer considerably lower than market value.
Without a structured settlement, many victims had to rely on a third party. In a lot of cases, the money ran out quickly. This is for several reasons. The victim may have had poor spending habits. Faced with a large sum of money, they were not thinking about the future but instead were thinking of fun ways to spend a lot of money they never had before. Not long after that, they find the money is gone and they still have to live their life.
Structured settlement funding is the funding over a structured settlement, a settlement in which the reward is paid to the plaintiff over a course of time. The period of time will vary according to the merit of the settlement, often from two years to the remaining life time. Unlike pre settlement funding, structured settlement funding does not depend upon the assumed strength of the settlement, as the settlement value is already determined. More over, an annuity or government bond generally guarantees structured settlements.