Investing in Structured Settlements

Often some derelict will be awarded some huge amount of money from a noble company due to a run away jury in a Kangaroo Court. Since many times the company paying the money out agrees on a structured over time settlement, the plaintiff of course is a lowly human and has lots of desires for riches and he has little if any cranial capacity to understand the enormous gift the courts have grated him as our nation turns in to a socialist quagmire of re-distributing wealth to those who do not deserve it. Yes a few have been damaged and do deserve something, but usually not. If you disagree with that, you are wrong and I am right.

Now then, since these folks who are future Darwin Award Winners and probably free T-Shirt Jerry Springer guest stars have these huge structured settlements you can make some money by buying these structured settlements from them. For instance if a man receives a 10 million dollar settlement over ten year, he will receive 1 million per year. But he may want all the money now instead so he can go buy stuff? So you may be able to give him 6 million in cash now and you get the 10 million over ten years. This means you get a 40% return guaranteed over the next ten years. Now then such an investment is not as good as others in that your annual rate of return is only 4% and many of us know that in the stock market over time we have seen 7.7% annual returns. But it is something to think about. Now then, what if some one receives 1.2 million over 5 years and you give them 500,000 in advance? Now things are looking a lot better aren't they? Any way think on this.

Purchase Structured

Investing in Structured Settlements

Viatical Settlement Companies

Death may be the only sure thing in life, and gambling on it may sound disconcerting to many. Viatical settlements involve selling the life insurance policy of a terminally ill person to a company who pays a lump sum cash amount in return for the policy. The companies buy the policy at a reduced rate of the face value, sometimes as much as 50% of the face value, and then collect the death benefits after the person's demise. Morbid as they may sound, but viatical settlements can provide relief to terminally ill people whose life expectancy has been predicted to about two years or so.

This is basically a high-risk transaction, as life itself is unpredictable. The viator (seller) may outlive the predicted life expectancy, and in this case, the company who buys the policy will stand to lose. The longer the person lives, the lower is the return value of the policy.

Purchase Structured

A terminally ill person may wish to sell his policy to raise cash to in order to ease the financial strains of his final days or to leave something for his children or grandchildren.

There are many private companies who purchase the life insurance policies. They, then become the beneficiaries on the demise of the original policyholder. Before selling the policy, ensure that you are selling to a funding company and not a broker company. This is because broker companies are not the actual buyers and they may or may not act in your best interests.

Also, the buyer companies have their own rules for buying the policies. They would run a checklist on your policy. For example, most companies prefer that a policyholder has had the policy for at least two years. They may also ask you to sign a release allowing them to access your medical records.

You should not accept payments on installments. As per New York State law, all funds must be received at the time of sale. Also, there should be no hidden fees involved at the time of sale.

Viatical Settlement Companies

How To Build Profits With Structured Settlement Leads

One of the most profitable businesses to surface in recent years has been the buying and selling of structured settlements. Such settlements have been awarded to millions of people, many of whom would love to have a lump sum of cash immediately rather than waiting years for the tedious monthly payments they currently deal with. Some have medical issues that call for immediate use of their money or are in financial straits and need their cash now. However, finding such people can be a daunting prospect given the size of our population! Fortunately, there are professionals who have created databases for just such a purpose!

Structured Settlement leads can be your door to more business than you ever dreamed possible. Instead of operating on a wing and a hope by cold calling, bulk mailings, or other expensive and time-consuming "blanketing" techniques, let a professional lead company create a customized client database to your specifications. These are potential clients who have already been awarded a structured settlement, which are now looking to exchange it for a lump sum of cash in the shortest time frame.

Purchase Structured

You will be given such pertinent information as name, address, phone number, email address and details of their settlement such as how much they receive monthly, duration and total award, saving you incalculable hours of data collection. Moreover, if you have been paying someone to do such work for you, you will now save that expense as well. The most time consuming and "iffy" part of the process has been streamlined for you by the companies who screen and digest the applicable data of your specific market so that you don't have to!

With Structured Settlement leads when you make the initial contact with a client you already know you are speaking to a viable lead that welcomes your communication and wants to hear what you have to say. Closing the deal has never been more direct or faster. Most people, given the opportunity prefer their money in one lump sum so that they can make large one-time purchases such as homes, real estate and vehicles more easily. You can offer them the freedom and flexibility they need to utilize their own funds while building your bottom line!

How To Build Profits With Structured Settlement Leads

The Downside of Structured Settlement Loan

If you won in a lawsuit, you are entitled to a structured settlement. As an award, the court will order the insurance provider or the company to pay you an amount which is just and reasonable. The money is a big help especially if you have lots of debts during times of appearing in court. You will be receiving an agreed amount either semi-annually or annually. The best thing about it is its ability to assist you financially. You don't need to worry of running out of cash for you will be receiving timely payments. However, sometimes people with structured settlements opt to go for a loan.

The loan is called structured settlement loan. Instead of receiving the money semi-annually for a stated period, you'll be receiving a lump-sum amount by providing your structured settlement as collateral. Many are doing it because of some financial emergencies like medical bills or other obligations. Some will be using the money to purchase a home or a car. What you will have is large amount of cash to purchase anything you want. Sounds attractive to grab, right? But before you go and get the loan, you should know the disadvantages of structured settlement loan. Sometimes, we only look for the positive side of things and we tend to neglect the downside.

Structured Settlements

If you really need big amount of money, I can't blame you if you will go for a loan. Large amount of money will be immediately yours once your application is approved. Sometimes, you are not contented for just a small amount but good for longer periods. Or in times of financial difficulty, we don't have any choice at all. One of the disadvantages of structured settlement loan is the lesser amount of money you will be getting in availing it. If for example, the settlement has a value of ,000, don't expect to receive a full amount. There are charges imposed by the financial company and you are the one responsible to pay.

It all boils down to business profits. How will the lender gain income if there are no charges? Unlike other types of loans where you need to make monthly payments, in this case you don't need to. With the lump-sum money coming from the financial institution, you don't have to pay it back. This is because the lender will be receiving the settlement payments in return. The structured settlement loan is a form of assignment where your receivable will be collected by the lender. But try to analyze it thoroughly; it is you who is losing in this battle. You will not be receiving an amount worth of the settlement.

You will be paying for interests as well. The bottom line about the loan is the loss of money. So you better think twice about getting a structured settlement loan. It's not all about the advantages but you should consider as well the disadvantages. You must be very clear about where the money will go. If you really don't need the money, then might as well be contented with the payments for longer periods.

The Downside of Structured Settlement Loan

The Tax Advantage of a Structured Settlement Payment

Structured settlement payments are a key part of any settlement between both parties and because it involves financial numbers, it automatically factor in some issues over taxation. Let this tiny bit of information illustrate how a long-term agreement can give you tax advantages.

When a person sues another person due to some sort of injury and wins the case, the claimant will receive monetary compensation for the loss through a settlement payment agreement.

Structured Settlements

Before, settlements come in the form of a lump sum but this proved to be very demanding on the spot for the paying party. The solution in the recent rimes is the payments which are gaining popularity because of its practicality and benefits for both parties.

As a substitute to a single lump sum payment, the claimant will be compensated a monthly settlement payment for an agreed period of time Choosing a series over the lump sum amount means a guaranteed source of long-term income for even a whole lifetime.

One of the highlighted benefits of these regular payments is the excellent tax advantages that come with it. It is basically income exempted from taxes unlike the usual salary or other forms of income like royalty or dividends.

For the record, there is no income tax on structured settlement payments since 1982. The tax savings itself makes this option of maintaining the long-term monthly payments very attractive. Over the entire period of the settlement, such savings is a big amount in itself.

A decade ago, there are problems with issues on the burden of taxation over transactions of transferring or selling of settlements. Insurance companies asserted that their clients or even their companies are at the losing end with the dealings in structured settlement selling.

When an individual sells, the annuity obligors suffer tax consequences. This became the source of several litigation in the past between insurance companies and settlement purchasers and annuitants.

With the enactment of the Structured Settlement Protection Act, it will further benefit these individuals receiving the monthly regular payments. Such regulation also clearly mandated that annuity providers will also not suffer from further tax consequences as a result. The law clearly states that annuity owners and providers do not owe any taxes as a result of these transactions.

Selling your structured settlement payments will make you lose many tax benefits in the process. Selling this guaranteed income has only an advantage of large yet single payment. Before deciding, it is best to consult with your financial advisor regarding selling your structured settlement payments. Your advisor will definitely help in defining with what you will lose in the process, especially the tax savings you will forego.

The Tax Advantage of a Structured Settlement Payment

The Benefits of Structured Settlements

Before getting into the benefits of structured settlements, it might be a good idea to explain what it is. A structured settlement, sometimes referred to as a periodic payment judgment, occurs as a result of a lawsuit where there is a considerable sum of money to be paid out. Usually the amount is broken down into payments and put on a schedule to be paid out over time. Payments can be made monthly, yearly, or every couple of years, depending on the agreement. The payments can extend over a period of many years. A person receiving the payments is referred to as the payee or annuitant.

So What's Good About Them?

Structured Settlements

Settlement Payments are tax free. This goes for the State level as well as the Federal level. The income received from this type of agreement is not considered annual gross income and is therefore not taxable.

Structured settlements mean more security. Regularly scheduled payments over a specified period of time adds security for a lot of people; especially for senior citizens living on a fixed income. It is less likely for them to be taken advantage of if they only have smaller amounts of cash as opposed to keeping large amounts on hand. They also offer security for children seeking a college education. For example, a settlement can be set up that will pay for college tuition. This settles the question of how they will pay for their schooling. Another way structured settlements add security is from the fact that most insurance companies that make these payments are some of the largest with the best reputations in the country.

Structured settlements take the worry out of your financial future. They add to the security of knowing that you will have some form of income in the future. Lump sum payments are taxable. In addition, it's possible to misuse a large sum of money - but not as much with smaller payments. This is particularly beneficial if there are living expenses as well as medical expenses that need to be met with these funds. Also, payments can be arranged to last the lifetime of the recipient.

Settlement payments do not affect Social Security benefits. As a result, the money an individual will receive from Social Security will be more per payment - which will help those on a fixed income. They also cannot be touched in divorce proceedings. Creditors cannot claim this money in payment of debts.

Structured settlement payments are cheaper. A settlement may eliminate lengthy court proceedings. The parties may opt to settle the case and never step foot inside a courtroom - which can be rather costly.

Ultimately, settlements that pay out over time can be very helpful in certain situations. For instance, individuals incapacitated whether temporarily or permanently, those that lack financial investment savvy, people that will require ongoing medical treatment or rehabilitation, minors.

I am not a legal expert, nor am I licensed to buy or sell a structured settlement. For more information on creating structured settlements and a counterpoint to selling them, see John Darer website.

The Benefits of Structured Settlements

How to Negotiate Your Structured Debt Settlement

People in dire financial straits often think of declaring bankruptcy and avoid payments of all debts. This strategy, though attractive to some people, should be the last option for any one with serious debt problems. There are other ways of settling debt and structured debt settlement is one of the best ways of ensuring complete payment of a hefty debt over a set period of time. If you are looking for structured debt settlement then you should try the structured debt settlement plans. They are different from ordinary settlements in a number of ways. The major standout feature is the amount that is paid over the set period of time.

Structured debt settlement will enable you to either pay large sums in monthly or quarterly payments or small amount of money in monthly payment. Negotiation is the key to ensuring complete elimination of debt without incurring any losses or paying any hidden charges. The first strategy that you can apply to settle your debt is to contact your lender. You need to be open about the difficulties that you are facing. Try to enter into a structured settlement deal with the original lender. It often happens that original lenders do not agree to these plans. Many refuse outright while others add plenty of additional charges to make the payments higher for the clients. There are some lenders that agree to structured settlement plans but only after you have presented your case well.

Purchase Structured

It is therefore recommended that you should contact a debt settlement company that deals specifically in structured payments. There are plenty of companies that offer structured debt settlements. There are however two main types of businesses that will help you in settling your debts. First are the companies that do not offer new loans and do not buy any loans from you. They act as facilitators and consultants and guide you through the whole process of debt settlement. Experts at these companies will guide you on negotiating with your original lender. They will prepare documentary proofs and other paperwork that will be used in finalizing settlement deals. These companies will charge you a set amount for their services.

The second type of companies offer more than just financial consultancy. They are eager to buy your loan at prices that are either lower than or equal to its market worth. They will buy the loan and will enter into a deal with the original lender. You will thus remain out of the loop and will not have to enter into any tough financial negotiations. These companies often charge significant fees and add hidden charges into the final settlement deals. Some other companies will even add taxes and other payments into final deals and you will end up paying a huge amount.

Structured debt settlement deals can be negotiated with these companies but only after you have done your homework. A negotiation with the original lender is a preferable option given the ease with which you can negotiate the final settlement plans.

How to Negotiate Your Structured Debt Settlement