structured settlement annuities
Settlement is basically a reward that a defendant wins in case of winning a lawsuit. The term structured settlements means splitting this amount of reward into specific periodic payments. This settlement allows the payee to receive a certain fixed amount of money for every month or year over a specific period of time which can range from few years to decades.
Cash out Option (Lump Sum amount):-
In some cases, those who win structured settlements can sell their entire payments plan or some of their payments or portion of tier each payment for the benefit of receiving a huge lump sum. There are multitudes of companies that deal in business of purchasing these structured settlements from sellers. These companies are called as “Structured Settlement Factoring Companies” but in layman terms they are referred to as Structured Settlement Companies.
Factoring Discount Rate:-
The lump sum amount that a person receives against their structured settlement is always smaller than the amount that you will receive as per your periodic payment plan. The reason is because the value of such payments when compared to future is very small because of factors like Inflation and Interest rates. These Structured settlement companies apply this amount as a “factoring Discount Rate” to your whole settlement amount and pay you the remaining amount.
Reasons for selling Structured Settlements:-
People usually resort to selling their structured settlements as a result of mainly financial troubles. People generally find themselves in the following conditions where they opt to either sacrifice part of their structured settlement or whole of it.
- Medical problems
A person should only make use of their structured settlement in case they have exhausted all the other options. For those who are already in possession of a steady income source, a place to live or have health insurance can make use of their structured settlements to get a lump sum amount to further invest either in their business or on their studies. However experts advise that any such decision should be made after consulting your lawyer or financial planner.
Tips to look for a structured settlement buyer company:-
When you are looking to sell your structured settlement in case of all options exhausted; do not be afraid to look around for varying options. The discount rate that is a factor that gives out the amount of lump sum against your settlement is not the same for all companies. Different companies will give you different options and you should go for the one that suits you best.
One other thing to consider is to look for the reputation of that certain Structured Settlement Company. You can check it by asking your State’s Consumer Protection Agency. The agency will provide you if there had been any regulatory action taken against this company or not.
Always verify the credentials of the company’s employee as well. You must ask the corresponding entities of the company about the authenticity of the people you are dealing with. Whether they claim to be the attorney of the company or the CPA of the company; check their credentials. Your lawyer can help you in this verification process.
Beware of the companies that charge for discount rate over 7%. Some companies can charge up to 29% of discount rate which will result in you losing thousands of dollars.
Do not go on to pay excessive fees for naught. It’s your money on the line so you should get the best deal out of it.
If a company offers heir lawyer for your legal representation, do not agree to it. In the end he is the company’s lawyer and he will think of company’s best interests. This is a complicated legal process so retain your own lawyer through this whole process.
Always steer clear of those companies tat will call you out of the blue and pressure you into selling your structured settlement for less that it’s actual worth. These are not the best companies for you and you are better off without them.
Last piece of ad vice; once the Sales agreement is signed it is approved and finalized and no terms can be altered again. Make sure to check everything is in order before the dotted line of signatures.
Top 10 companies:-
For or readers we have gathered a list of top 10 structured settlement companies that have a high repute in the market. These companies are as follows.
This company certainly stands tall at any list of top structured settlement buyer companies. With its 20 years of experience in providing leading and diversified Consumer financial services, this company has maintained its ranking as the number one Structured Settlement buying company in the States. The company deals in purchase of structured settlements, mortgage lending, personal and business loans and prepaid cards. The company has the A+ score with BBB and four star rating from Trust Pilot. This company is based in Pennsylvania since its founding back in 1991.
Peachtree Financial Solutions:-
This is a Pennsylvania based company founded back in 1996 which helps the seller of structured settlements, annuities, lottery winnings as well as other stem lined payment holders. With its enriched history and broad experience in the market, company has helped over tens of thousands of customers across the country. This company also ahs A+ with BBB.
This company is based in Boynton Beach, Florida. This firm acts as a mediatory between connecting people who want to sell their structured settlements, lottery winnings or pensions. The company also deals in providing services related to Personal Injury lawsuits.
ANFED (Annuities Federal bank):-
This company also offers best structured settlement purchasing offers to its customers. This company in actuality is a division of the Bofl Federal bank which is a publically insured company. The bank deals in purchase of either partial or full structured settlements or lottery winning since 1999. The company also offers arioso other banking services.
Stone Street Capital Structured Settlements Review:-
This is one of the oldest structured settlement purchasing companies of the country. Company is incorporated in Delaware with it’s headquarter located in Bethesda, Maryland. The firm which was founded in 1989 has now almost 200 employees. People who prefer lump sum for their Annuity payments, structure settlements, or lottery winnings; it provides them best service.
This company was founded back in 2013 and is an online educational portal resource for selling structured settlements. The company is also partner with CBS settlement funding. This company provides tools and articles of sale and purchase of structured settlements and annuity payments. After getting the respective knowledge you can get free quotes from their affiliate company. Their affiliate company; CBS Settlement Funding was founded back in 2008 and holds A+ from BBB.
Based in Atlanta, this company was founded back in 2008 and exclusively focuses on purchase of structured settlements and annuities. Company maybe small in its operations but has excellent customer service reviews. Clients have rated their employees to be patient and considerate. The company has not only A+ rating with BBB but also has zero negative reviews about it.
Liberty Settlement Funding:-
This is a Florida based company founded back in 2001 but with its successful purchase record ahs made it on to list of top 10 structured settlement buyer companies. The main focus of this company’s business is for purchase of structured settlements and other income sources for providing fair lump sum cash value. The company also deals in purchasing lottery winnings as well as annuity payments.
This company is incorporated in Rosemont, Illinois and is engaged in business of purchasing either whole structured settlements or portions of them. This firm also specializes in pre settlement funding for the clients who are waiting for verdicts in their favor for claims of Personal Injury cases.
This is a private company that is a subsidiary of DRB Financial Solutions, LLC. The company not only purchases structured settlement and annuity payments on fair discounted rate but also provide for services of Pre settlement funding. The company was founded back in 2011 in Delray Beach, Florida and currently has 150 employees.