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Buyer Of Structured Settlement Annuity - Selling Structured Settlement Annuities - Structured Settlements, Factors a Buyer of a Structured Settlement Annuity Considers

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Structured settlements are generally agreements between individuals and insurance companies in which the insurance company pays the person a certain amount of money for a certain amount of time, i.e. $2,000 per month for 10 years. Structured settlements are usually offered in cases of accidents, personal injury suits or other kinds of legal disputes. These payments are not always equal and can consist of a series of lump payments, monthly payments, and equal and unequal installments. They should be free from income taxes, although governed by federal and state laws. If the payments are made to an estate rather than an individual, they can be subject to estate taxes. Factors which are usually considered when deciding on the settlement payments include age, occupation, retirement plans and monthly expenses. Some recipients of structured settlement annuities find the length of time they have to wait for their payments to be inconvenient and unworkable. Several companies exist to buy these structured settlements, usually for a lump sum. A buyer of a structured settlement annuity may offer cash, a lump sum or a more convenient payment plan to the seller.

Factors a Buyer of a Structured Settlement Annuity Considers

No matter how enthusiastic these companies may seem about giving you cash for your settlement, they do have to consider certain factors. The amount you get in exchange for your settlement may not be exactly what you were awarded. You will more than likely have to settle for less in exchange for the convenience of getting your money now instead of later. Companies will have to consider, of course, the value of your annuity and whether or not you want to remain part-owner of the payments. Buyers will also look closely at the stability of the institution funding the payments and how likely they are to be able to continue making the payments in the future. Your money will become their money, that they are then responsible for collecting, and if the funder looks like a bad risk, you may be turned down or offered a low amount. The current economy will also impact the amount you are offered by a settlement annuity buyer, especially the current interest rates.

Options for Sellers of Structured Settlements

Though some companies which buy settlements may push you to sell all of your payments for one lump sum, more credible companies will caution against it. RSL Funding offers customized plans which allow you to sell as little of your payments as possible. You should have to pay nothing out of pocket or any charges or hidden fees. If there are court costs, broker commissions or legal fees, most reputable companies will simply deduct the amount from your lump sum. The transfer process will take some time, and will drag out over several weeks, but many buyers will pay you out within a few days of your agreement, although they may ask for collateral.

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