What Does a Structured Settlement Company Do With Your Structured Settlements?
If you are a client of the Structured Settlement Company, you should make an effort to familiarize yourself with its policies about receiving future payments, in particular, lump-sum payments. One of these policies is that when you sign up for structured settlement services, you agree to receive regular periodic payments.
In other words, if you sign up for such services, you agree to receive future payments in the form of a cash down payment, monthly payments, or a combination of both. In most cases, future payments are made against future earnings.
As was explained above, one of the most popular ways that companies sell structured settlements is through creating an annuity for clients. Annuity schemes provide for steady income over a long period even after the initial payout. You can opt for either fixed annuities or variable annuities. Both types of schemes allow you to convert your structured settlements into a lump sum or even into an annuity, depending on your preference. You can opt for either tax-deferred or tax-free annuities.
In recent times, people have opted for tax-free plans in which the total cost of the annuity does not come under the lifetime income cap. However, you need to remember that tax laws are dynamic and can change with time.
It would be wise to consult a life insurance company, your attorney, or experts working on structured settlements before taking this step. It would also be prudent to get your structured settlements appraised annually so that you know what your obligations will be once you pass away.
Structured settlement services can be useful for individuals who were victims of wrongful death or personal injury. Personal injury settlements can allow survivors of such accidents to pay medical expenses and funeral costs associated with the victim's death.
The life insurance company makes regular payments to these survivors, which they use to pay regular monthly premiums until the settlement amount is exhausted. The settlement amount can also be used for other purposes like paying off debts, buying a home, or funding the education of a child.
Even if you have never had a personal injury lawsuit, you may still qualify for structured settlements. If you wish to get structured settlement money, you need to first take a structured settlement evaluation and look at the pros and cons of doing so.
To do that, you will need to speak with a lawyer who has experience dealing with structured settlements. You must shop around for the best deal you can get, as there are many companies out there ready to take your money.