manage your settlement
The Structured Settlement Institute
The mission of the Structured Settlement Institute is to educate people about the Structured Settlement Industry, and how to deal with the competing firms. One of their goals is to educate everybody on the legal aspects that go along with the purchase or sale of annuities and settlements. They will make a recommendation as to which firm will best suit an individual’s needs.
This is clearly the place a person should go for enlightenment so as to be able to choose which is the right option. The Institute is very attuned to the realization that the information they provide plays a critical role in the choices people make, and how deeply it could affect their future.
The Structured Settlement
The Institute does not “steer” people that seek them out for help. They present a clear picture of everything that should be considered. After all, each case is unique unto that injured party.
Typically, a person receives an injury from any number of causes, such as: Workplace Injury, Auto Accident, Medical Negligence, Slip& Fall or some other personal injury, or Lottery Payments.
Very often the case is settled out of court, but it still must have a court’s approval. The courts treat structured settlements as a very serious matter. They will examine the case in great detail, weighted in favor of the claimant.
There comes a point that a decision has to be made. Do you accept periodic payments over a number of years, or even a lifetime, or do you go for a lump-sum cash payment. My clients sometimes ask me if lump-sum cash means a suitcase full of cash. Well, the answer is no, even if it makes a great mental picture.
The Lump Sum Payment
It is quite common, especially nowadays, to hear from disenchanted settlement holders. People do not understand that their future is very unpredictable, such as are interest rates and economic and personal tragedies. What happens is that these people come to a point where their payments are running thin, and are just not enough money.
We have spoken to clients that had to pass up on some very lucrative opportunities because they did not have the liquid capital to take advantage of the opportunity there and then. Sometimes a situation arises where the mortgage payment or car payment is not being made any more. College Tuition is another factor of needed financial liquidity.
Once you have chosen a structured settlement, you can’t just go to the check cashing store and cash-it-in. What you can do is go to a structured settlement firm, like Einstein Structured Settlements, and get a quote for the sale of your future cash flow. You will be counseled that you will be selling your future payments for a discount, in order to attract an investor to purchase the settlement.
The Settlement Holder, in return for a large lump-sum payment, is giving up all future rights to the proceeds of the settlement. I counsel my clients about the fact that they can sell only a portion of their settlement for a lump sum, or can even schedule additional lump-sum payments in the future.
The bottom line translates to whatever is in the best interests of the claimant or investor, will be presented by the Structured Settlement Institute.