Purchasing Structured Settlements Blog: What You Need To Know About Structured Settlements

Purchasing Structured Settlements Blog: What You Need To Know About Structured Settlements

There is a lot of information that you can glean from a purchasing structured settlements blog. The first thing that you are going to find upon visiting a purchasing structured settlements blog is that there is a lot of information to take in pertaining to structured settlements. If you want to understand what it means to buy and sell structured settlements, then some of the information that you are likely to find online will include:
* When a structured settlement company buys a structured settlement, they typically do so at a profit. The lump sum amount that an individual receives when selling a part of their settlement or their complete settlement is not going to be the same as the actual value for the structured settlement that they are selling. In other words, the individual who is selling the structured settlement is going to lose a little bit of money on the process, and the company doing the buying is going to give itself a potential for profit.
* The money that these companies earn is then invested into the best possible option within their investment portfolios during that time, and these profits are used to pay employees, to keep the company running and to advertise the business. A structured settlement company that is financially healthy is going to be a much safer opportunity for individuals doing the selling since there is a much smaller chance for the company to go bankrupt.
* Companies tend to be attracted to structured settlements because this guarantees them a safe amount of cash flow, and because these purchase transactions are not generally taxable. There are always generally going to be individuals that need money quickly who are willing to swap their structured settlement in order to get some money quickly. The work that is involved in the purchase of a structured settlement is not generally very much at all, so the main part of the effort has to do with marketing the business and then obtaining the court approval for the purchase in a way that is compliant with federal and state laws.
* Because of the fact that structured settlements are guaranteed results in the structured settlement purchasing companies being able to obtain debt with low interest rates so that they can then use that debt to finance other types of ventures. For example, a structured settlement debt can pay a lump sum of $200,000 with a pre-tax ROI of 10 percent over a 20 year period, and this will return a total of $23,492 every single year, which is a greater profit than what they shelled out upon buying the debt.
There is plenty of information available online through the various types of purchasing structured settlements blogs out there. If you are serious about finding out more information about structured settlements, then one of your first stops is likely going to be a purchasing structured settlements blog. It is vitally important that you have a firm understanding of what structured settlements are, and what it means to buy or sell them. If you have a structured settlement and you want to trade it in for quick cash, or if you are interested in buying structured settlements as a business, then the more that you know and research, the better off you are going to be. Knowledge is power, and when it comes to business investments and money, you really do need to have as much knowledge on your side as you possibly can. Structured settlements can be really beneficial, but only if you know how to do the right things with them over the long term.

Structured Settlements Utilize Annuities

Structured Settlements Utilize Annuities

To fund the financial obligations owed to an injured party, a defendant – or more usually, his or her casualty insurance carrier – will purchase one or more annuities from a life insurance company, or delegate its periodic payment obligations to a third party, which in turn would purchase a qualified funding asset – either an annuity or a government bond.
The payments are then structured, or scheduled. An insurance company agrees to pay the injured individual a predetermined amount of cash for a fixed length of time or for the duration of the life of the claimant, depending upon the particulars of the settlement agreement.
Structured settlements are governed by both federal and state laws and must be closed under court order. The process is highly regulated by the courts. Some states also require the hiring of an attorney as a precondition to acquiring a structured settlement annuity.

Annuities and Structured Settlements

Annuities and Structured Settlements

An annuity is a contract between a consumer and an insurance company that provides for the repayment of a premium back to its buyer over time. An annuity is a hybrid financial arrangement with characteristics of both an investment and an insurance policy. On the one hand, there is an expectation that the money used to purchase the annuity, which is invested by the insurance company on behalf of its owner, will provide a return that exceeds the original outlay. On the other, it comes with an assurance that there will be a fixed rate or time period of return and sometimes a guarantee against loss of principal.
The concept of annuities dates back to ancient Rome, but the first record of annuities in America comes from the Colonial period. In 1759, a company formed to provide a secure retirement for aging Presbyterian ministers and their families. In 1812, the Pennsylvania Company for Insurance on Lives and Granting Annuities received a charter to sell annuities to the general public.
The current era of annuities began in 1952 when the educators’ retirement fund, TIAA-CREF, first offered a group variable deferred annuity. Annuities today are mostly used as a way to provide for an individual’s retirement, usually on a tax-deferred basis. Americans now own over $1.7 trillion in annuity products.
Structured settlements are linked to annuities because they’re considered an effective way to deliver money to people who need it but also need the disciplined of a monthly or yearly payout. Congress in 1982 passed the Periodic Payment Settlement Tax Act, which established structured settlements as a way to provide long-term financial security to accident victims and their families.
The idea was to replace lump-sum payments awarded to personal injury claimants with periodic payments. The government’s aim was to decrease the number of personal injury award recipients who went through their funds too quickly and were subsequently forced to rely on public assistance. In addition to personal-injury claimants, structured settlements are frequently set up for winners of tobacco lawsuits, for lottery winners and for lawyers and law firms who are owed large sums in fees.
Because annuities can be designed to offer timed payouts, guarantees on principal, as well as investment gains, and were already being offered by insurance companies, they quickly became the preferred vehicle in which to implement structured settlements. To encourage their use, the new law made any interest or capital gains earned on the annuity within a structured settlement tax free.

Buying structured settlement income streams, legal issues and risks raised by SEC bulletin

Buying structured settlement income streams, legal issues and risks raised by SEC bulletin

In part three of our series examine the SEC and FINRA bulletin regarding structured income streams and investor risks, we are joined again by Attorney Matt Bracy of the law firm, Nesbitt, Vassar and McCown of Dallas, TX.

While much of the SEC alert discussed the issue of factoring, or selling a clients periodic payments/structured settlement income stream, the second issue was the risk to investors in these programs. The marketing of secondary income programs, backed up by structured settlement annuity income streams, is a recent phenomenon in the financial marketplace and obviously has drawn some scrutiny from regulators as to the risks for investors who are interested in purchasing the above market yields they offer.

Matt Bracy outlines the four key elements that investors in settlement income streams needs to be aware of before agreeing to purchase a program, as well as some of the transaction risk that needs to be considered. The video outlines these in detail but topics such as examining the legal order, making sure it complies with state and federal laws governing income transfers, questions about who is actually mailing you the check each month and the financial security of the original annuity issuer are all covered in this important conversation.  

Purchase Structured Settlements - How to Get it done Rightly ?

Purchase Structured Settlements - How to Get it done Rightly ?

So if you are interested to buy structured settlements you need to co-operate with a company, which can match the settlements with the investors. This brief article tries togive you useful information  regarding the significant things in this extremely important process.
When the law suit will be settled, the damage is going to be give by an contract in between the parties to use a lump sum or periodical payments. If they finish to pay with the periodic payments, they are called the structured settlements. Typically the 3rd party is going to be utilized to obtain the financing.

1. Co-operate With A Trustworthy Finance broker.
Once you buy structured settlements you actually reverse the cash money with the right to get future periodic payments. So the question is just about a longer term strategy, which means that you have to operate with the reputable ventures only. The federal and state laws regulate and obstruct these operations also.
2. Co-operate With A Financial Institution, Which Is Certainly Part Of Nationwide Structured Settlements Trade Association



When you purchase structured settlements you have to use a finance broker, who can find the seller and the buyer. Basically because also in this market there are a lot of scam expert services, the first thing to do is to find a trustworthy broker, who is able to guarantee the success of the deal.

3. Ask Several Quotes.
Marketplace doesn't have standard price lists, but all arrangements are made in accordance to the offers the parties will do between each other. To get a positive deal you really have to ask about ten quotes from different companies. Make the finalists, Lets say three best ones, to compete against each other and to show, do they honestly want your deal.

4. Utilize An Experienced Attorney.
The agreements in this business model are like the insurance contracts, full of small information and tiny print. This is certainly the simple reason, why it is necessary utilization of an highly trained lawyer, who is familiar with the mine fields and can guide you to create an agreement, with which you can easily living for the duration of those yrs.



5. Discuss With People today, Who Have Done It.

If a couple of your buddies or relatives have done the settlement agreements, it is useful to speak with them. These agreements are the long term arrangements, which one will work successfully, if the parties are reliable ones. One tip is to select the co-operators from the group of the crucial companies in the industry of structured settlements, which have many years experiences from the operations.

What is the Purpose of Structured Settlements?

What is the Purpose of Structured Settlements?

There are many reasons and ways people can get a structured settlement from winning the lottery to being injured in some sort of accident and winning a cash award. Any award can be paid out in all cash or they can be paid over time via an annuity that pays cash on a monthly basis over time. The latter example is a structured settlement where a person receives their monetary award in the form of recurring payments over time. The company that is paying the award can buy an annuity that will then provide the payee regular installment payments (typically monthly or quarterly) depending on the needs of the individual and the amount of the settlement. These payments can stretch out from just a few years on the low end all the way up to twenty or thirty years or more. Again, it just depends on the circumstances and the amount of the award.

Primary Benefit: The most common benefit of receiving a structured settlement rather than all cash is to ensure that one is guaranteed to have financial stability over a long period of time. Often an injured party may not be able to return to work and the annuity is set up to provide them income and financial resources to take care of their needs. Alternatively, there is some inherit risk to anyone that receives a huge lump sum cash award at the outset to spend the money unwisely (and quickly) and then be left with no means to support themselves.

Negative: There are also a few drawbacks to receiving a structured settlement which include you not having much flexibility. The primary problem is that when setting up annuity payments for someone for the next twenty or thirty years it is very difficult to foresee what all the financial needs and circumstances may be. So even a well planned out settlement may not account for an unexpected expense that can be financially devastating. In this case the annuity recipient can not go back and revisit the original settlement to get more cash. Their payments are fixed and cannot be adjusted. This makes for some unfortunate circumstances unfortunately and what led to the rise of the industry to buy structured settlement payments.

Buyers: Once people with settlements ran into financial problems and realized that their original agreement may not account for all their future needs is when companies came in to fill this void. Factoring companies will buy structured settlement payments and pay lump sum cash to the recipient. Not only can one receive a cash payment but they also have the option to sell all or just a portion of their future payments. This provides the flexibility to get some cash that is needed today will ensuring future payments to take care of needs down the road.

If you are interested in selling your payments you can talk to an expert and get a free quote to find out how much your payments are worth by click on the link below. Be sure to share as much information as possible and ask many questions about the process so you are fully informed.

The Value of Using Structured Settlements When Addressing Medicare Set Asides

The Value of Using Structured Settlements When Addressing Medicare Set Asides

The Medicare Secondary Payer statute (MSP), 42 CFR 411, requires that primary payers (carriers, self-insured entities) protect Medicare’s future interest when settling the medical component of workers’ compensation claims. Medicare’s preferred method to protect their interests is to include a Medicare Set-Aside Allocation (MSA) as part of the settlement. The MSA serves as the mechanism to fund future Medicare allowable expenses for work related injuries that were included as part of the settlement.  

The MSP statute clearly delineates that Medicare is a “secondary payer” in situations where primary payers exist. If the primary payer (carrier, self-insured entity) settles future medicals and fails to protect Medicare’s interest, Medicare may deny coverage.  

Medicare Set Aside Ensures Compliance

To comply with the MSP requirements, insurers create a Medicare Set Aside (MSA) agreement (also referred to as a MSA) which estimates the future Medicare allowable expenses relative to the work-related injuries. In certain circumstances, the MSA is submitted to Medicare for their review and approval. If Medicare concludes the MSA amount to be adequate, the insurer proceeds with the settlement which includes the MSA amount. The MSA funds are paid as part of the settlement to the injured employee.

Regardless of the age of the injured party, future medical costs are often times very significant.  It is not uncommon that MSA costs adversely inhibit the primary payers ability to move forward with settlement. While many insurers and self-insured entities pay MSA funds by way of a lump sum, it is often much more advantageous for all parties involved to address the MSA with the use of a structured settlement.

Structured Settlement Offers Many Advantages

A structured settlement is an annuity purchased from a life insurer and established to make annual payments of the MSA amount over the life-time of the employee.

The structured settlement of the MSA provides several benefits including:

·         Establishes the distribution of periodic payments for the MSA funds and assists in avoiding both a premature exhaustion of funds and/or the inappropriate use of the funds

·         Offers cost-containment benefits as the cost of the annuity is less than paying funds out as a lump sum

·         Assists in facilitating settlement in situations where money is freed up by purchasing an annuity for the MSA and can be utilized for the indemnity component of the settlement if required


A Medicare Set Aside Structured Settlement Example:

To see how a structured settlement saves money, consider the following hypothetical example.  The injured employee is a former motel maid Jane Doe, age 45, who injured her back lifting a heavy bag of trash.  She is morbidly obese, has diabetes, hypertension and gout.  She has had 3 unsuccessful back surgeries and is expected to be permanently and totally disabled.  Due to her on-going pain management treatment, medical appointments and narcotics, it is estimated that her medical care over her 30 year rated life expectancy will be $10,000 per year or $300,000 in total. There are two ways to pay for the future medical care.  The first way is to write Ms. Doe a check for $300,000.

The second way to pay for the MSA is through a structured settlement.  We first obtain a rated age (based on comorbidity factors) and evaluate the structured settlement quotes. After parties agree to terms on the settlement (including the structured MSA) and CMS review is completed (if applicable), settlement funds are disbursed.  

By structuring the MSA in this scenario, the total cost of the annuity was $225,000 to the carrier or self-insured entity and the injured party reaped the benefits of the annuity payout of $300,000 (includes the CMS required two-years of seed money and periodic payments that will be paid over the life of the annuity).  

The potential hard-dollar savings in the above hypothetical example is $75,000.  As this is an example, the savings could be actually greater/less all depending on a number of factors – size of MSA, comorbidity factors for rated age purpose and  rates of return on the annuity (tax free interest earnings on the annuity).    

To learn more about utilizing structured settlements when addressing MSAs, please contact us.


Author Rebecca Shafer, JD, President of Amaxx Risk Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker, and publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality, and manufacturing. She is the author of the #1 selling book on cost containment, Workers Compensation Management Program: Reduce Costs 20% to 50%. Contact:RShafer@ReduceYourWorkersComp.com.

Editor Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com. Contact: mstack@reduceyourworkerscomp.com.

Can a Structured Settlement Transfer be Blocked by the Court?

Can a Structured Settlement Transfer be Blocked by the Court?

Many people rightfully think that the decision of how to best use their resources, like money, is theirs to make. This is especially true of annuities and structured settlements, although that might not actually be true. Many states have laws in place dictating how structured settlements are dealt with, especially transfers or sales. Can a court really block the transfer of a structured settlement? The most honest reply to that question is yes, the court can deny the transfer of a settlement, but there’s a little more to it than that.

A Little Investigating

You have to know about the history of the structured settlement brokerage industry to really know what’s going on. The predatory nature of some companies has caused many states and consumer advocates to hold a low opinion of structured settlement transfers. Preying on the desperate and needy, these companies convince them that the best option for their financial situation is selling their structured settlements.

Most states, however, now have laws on the books to protect consumers from these types of predatory companies. One of the immediate benefits of this is that all transfers or sales must go before a judge, who will determine if the transfer is in the payee’s best interests. In many cases, the judge denies the transfer, not allowing the sale to take place.

The Criteria for Denying a Transfer

The reasons for denying the sale or transfer of a structured settlement are many and varied. One of the most common reasons is that allowing the sale or transfer is “not in the payee’s best interests”. This can mean virtually anything, although there does seem to be mitigating factors. For example, there’s a good chance that the court will reject the transfer if the funding firm recommends that the payee seek legal counsel before entering into a transfer arrangement. The proposal will then be rejected if the court does not find proof of a real financial need on behalf of the payee.

Additionally, if the transfer is not deemed “fair and reasonable” the court may reject it. For example, chances are very good that they will not approve of the proposal if the funding firm offers a payout of only 50% of the total payments for the life of the settlement.

It is easy to see that there are many factors that could lead a court to reject the transfer of a structured settlement. Showing a real financial need, and working with a firm that’s offering fair terms, is your best defense against a court denying your sale.

personal injury lawsuit

If you were awarded monetary compensation from a personal injury lawsuit, it is likely in the form of a structured settlement. Unlike a lump sum payout that involves a one-time large payment, a structured settlement consists of much smaller payments that are made over the years. A structured settlement may also be referred to as an annuity. Although an annuity also refers to a policy that some people invest in for the future and for retirement, it is also used to pay structured settlement recipients. The way it works is this: When you are awarded financial damages, the insurance company that owes you the money purchases a policy from another insurance company, and that policy—which is an annuity—is what you actually receive your structured settlement payments from. If the long-term payments from your annuity are no longer enough to pay for the things you need to pay for, we can help. We purchased structured settlement annuity payments from people that would prefer to see their money in one lump sum installment. Unlike a loan, there is never any money to pay back because you are selling the rights to your future payments.

Are you interested in learning more about how an annuity buyout transaction can help? If you’d like to learn more about the settlement funding process or have any questions, please feel free to reach out us. Contact Peachtree Settlement Funding today to learn more about an annuity buyout transaction can get you the cash you need now.

You may be an annuitant if:

You purchased an annuity policy for retirement

You inherited an annuity policy from a loved one

You are the recipient of structured settlement payments
 
If the idea of selling all of your annuity payments doesn’t sit well with you, but you still need cash now, we can still be of assistance. Peachtree Settlement Funding can purchase just a portion of your annuity payments so that you receive the cash you need now without selling your entire payment stream. By doing this, you will still retain some of your future payments.

Are you the recipient of long-term annuity payments, but you need cash now? We can help! At Peachtree Settlement Funding, we can tailor an annuity buyout transaction that will suit your financial needs and get you the money you need as soon as possible. Contact us today for more information and to receive your free quote.

A lump sum option from Peachtree Settlement Funding

A lump sum option from Peachtree Settlement Funding gives you the ability to sell future payments and get the upfront payout you need now. Even though a long-term payment stream may have been the right choice initially, things in life can change. There are times you may need money to deal with an unforeseen situation that could not have been anticipated at the time you were awarded a structured settlement. However, that does not mean you are stuck receiving structured settlement payments. If you need money now to make a large purchase, Peachtree Settlement Funding can help by purchasing some or all of your periodic payments for a lump sum cash payout.
Are you interested in selling some or all of your structured settlement payments in order to make a large purchase, such as a home or car?  We can help! At Peachtree Settlement Funding, we purchase structured settlement payments from recipients that would prefer to receive their settlement in one lump sum. Contact us today to learn how you can receive the money you need to make a large purchase!

You may be a structured settlement recipient if you received monetary compensation resulting from any of the following types of lawsuits:

Personal injury

Medical malpractice

Premises liability

Wrongful death
Since 1996, Peachtree Settlement Funding has helped thousands of people nationwide with the sale of their structured settlement payment stream. Many people who come to us wanting to sell their long-term payments do so because they want to make a large purchase. Examples of large purchases that can be made with your lump sum payout include a home or a car. Additionally, you can use your cash to take care of debt, pay off medical bills, start a new business, pay for college, and so much more. If you’d like to experience more financial freedom by receiving some or all of your money upfront instead of waiting for it to trickle in periodically, contact Peachtree today.

  Are you receiving long-term payments from a structured settlement and you’d like cash now to make a large purchase? Peachtree Settlement Funding can help! Contact us today to find out how the settlement funding process can help you make the purchase of your dreams, and to receive your completely free, no-obligation quote