Structured Settlement Broker

The Importance of Choosing a Good Structured Settlement Broker

If you have won an case where you were awarded a large sum of money, you may be offered the money in payments over a specific period of time. This is called a structured settlement. This type of payment system will provide you with a guaranteed income on a regular basis until the whole settlement is paid. But for this whole process to work properly, you need the services of an experienced structured settlement broker.

It is the job of the structured settlement broker to help the parties understand the costs involved and to come up with a proper financial analysis. An experienced structured settlement broker will be able to develop the best payment plan that will best benefit the recipient.

A structured settlement is paid out by annuities that are backed by a life insurance company. These annuities can be paid in several different ways. The payee may choose to get a partial lump sum initially and then receive payments on a monthly basis, a quarterly basis or a yearly basis.

The payment structure can be changed over the life of the payment schedule in some cases. If the payee has medical needs arise, he can request an increase in payments to cover these costs. It is vital to have an experienced structure settlement broker working with you if this becomes the case.

Structured settlements can also be sold to get a cash payout. People may opt to do this if they need a large sum of cash right away. But it is important to keep in mind that selling a structured settlement will decrease the amount of money that you will get because you are given only a fraction of the total settlement sum.

If you sell your structured settlement, you are also giving up a guaranteed monthly income. These structured settlement payments are tax exempt and protected from creditors and divorce settlements. So you need to positive that the annuity payments are something that you want to part with.

Selling your structured settlement payments is a complex process and will take the advice of a good structured settlement broker. You should also consult your attorney before you decide to sell. You must be very careful in who you choose to sell your settlement to. Like everything else out there, there are unscrupulous companies that will take control of your settlement and not pay you. Some companies will not want to give you a fair price for your structured settlement. Therefore, it is critical that you have your attorney or structured settlement broker guide you when selling your structured settlement.

So never hesitate to employ the services of a structured settlement broker.