What are structured settlement sales?
Structured settlements have become increasingly more popular over the last few years and were first used in Canada, they have since been used to keep legal costs to a minimum by avoiding expensive trials. There was a justice ruling passed that ensures that there is no difference in premiums between both men and women, ensuring that it is a fair option for anybody to take. A structured settlement sales is a financial agreement in which a claimant seeks resolve of a claim by way of periodic payments as an alternative to a lump sum pay-out and although they are regularly used in product liability cases they are most commonly used in claims such as medical negligence and accidents both in public and the workplace.
structured settlement sales agreement:
A structured settlement sales can be privately made to avoid in effort to reduce costs and avoid a potentially lengthy trial or can even be the subject of a court order which is usually the case when the claim is made on behalf of a child, disabled adult or somebody who is unable to successfully manage the case themselves for example an elderly person. A structured settlement sales arrangement occurs when instead of receiving a lump sum in the usual manner, a payment agreement is made so that the person bringing the lawsuit receives regular payments for either a certain amount of years or the duration of their life in exchange for agreeing to take no further action regarding their personal injury or negligence. Payments for the duration of a claimant’s life are usually made when a serious or permanent injury occurred as a direct result of an accident or consequences of medical negligence and no improvement of the claimant’s circumstances are forecast.
How are the structured settlement sales payments worked out?
The party in the lawsuit who were unsuccessful purchases an annuity, this annuity will match the payment requirements set out by the successful party, it will also be protected so that nobody at any stage can stop the payments or change it at all, once the insurance company that pay out the annuity have agreed the payment schedule, not even the claimant or any contributors can amend it.
Structured settlement sales annuity:
A structured settlement sales annuity is a financial product usually sold by companies such as life insurance brokers. During the process a structured settlement sales Annuity contract is made, purchased by the losing party. For the settlement to happen and the contract to be put in place, there must be full agreement between both parties. Although many different types of people can advise you on the payment terms and the contract, it can only be made up by a licensed settlement planner. The settlement planning process can be quite complicated and in some cases very stressful and even frustrating, as there are many future expenses to negotiate and cover.
Structured settlement sales process;
Before any negotiations on structured settlement sales begin, your settlement planner can help you to work out any future costs including medical care, loss of earnings, prescription costs and anything else that you feel needs to be covered in detail and give you advise on these matters, including an explination of the benefits to you (if any) of choosing structured settlement and the potential amounts you could receive. The structured settlement sales annuity can be set to payout monthly, every six months, every year, or for the duration of the claimants’ life. These payments can also be deferred or scheduled immediately depending on your circumstances.