Brokers Handling the Purchasing of Structured Settlements
Insurance companies make a ton of money on structured settlements. In the process of helping individuals sell their payments, there are brokers who handle the purchasing of structured settlements and are educating people about 'structured settlements' in general. The insurance companies do not want people to learn the true nature of what a structured settlement is all about. They of course have a vested interest in keeping people in the dark. Brokers that handle the purchasing of structured settlements are putting a serious crimp in their style, shedding light on a subject that they want to keep hidden.
Luckily for you, there are a number of brokers who handle the purchasing of structured settlements that believe people should be informed of their rights as well as all of their options. The choice of whether or not you should sell a structured settlement annuity belongs solely to you, not to the insurance companies. The settlement purchasing industry was created in answer to the needs of individuals whose situations had changed after the initial settlement took place. The HR 2884 Tax Relief Act was enacted recently that allows for an "injured party to receive the right to a stream of payments as compensation for personal physical injuries or physical sickness or as compensation under a workers' compensation law. The party could then sell the right to the payments to a 'factoring' company in exchange for a discounted lump sum payment."
On the Flip-Side - Brokers Assist With Initial Transactions
During the initial process of obtaining a structured settlement, a broker can obtain quotes and assist in purchasing structured settlements from highly-rated annuity companies. They will work closely with all parties involved and will have your best interests in mind. If the defense makes a structured settlement offer, it is important to understand the cost, or present value of the future payments in order to compare it with an immediate lump sum payment. Often, the plaintiff's attorney alone, cannot decipher this. Additionally, he or she may want to make a counteroffer, either increasing the payments or changing the timing to provide for the known needs of their client. A broker can help the plaintiff's attorney do just that as well as guide them through the entire process.
In order to obtain the best results in a structured settlement case, it is important to involve an advisor, generally a broker well versed in the field, as early as possible in the negotiations. Once an agreement is reached to settle for cash, it is generally too late to obtain tax and other advantages that can be reached in structured settlements. The broker will search for different markets in order to optimize the annuity for the client, and additionally can help find markets to structure attorney fees as well. They can help design a structured settlement proposal that will take into consideration the unique needs of the individual. In either case, brokers in general, if experienced and licensed, can be a great asset!
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