Why It Is Easy to Sell Structured Settlement Payments
Structured settlements help many injured individuals and their family’s by giving consistent reliable income upon which to survive after an injury. They shield those individuals who depend on monthly payments to survive from losing access to money that they need just to meet an unexpected expenditure or repay debt. However, at times, the structured settlement is nothing more than a security deposit, keeping rightful owners out of accessing funds that they must pay for unforeseen expenses or meet an unanticipated debt. This causes several problems including identity theft, embezzlement and, in some cases, bankruptcy.
Sell Structured Settlement payments is a way that injured individuals may sell their periodic structured settlements to companies that specialize in purchasing structured settlements. One such company is Diamond negotiates discounted lump sum purchases from holders of structured settlements and annuities and pays them regular cash instead of the structured settlement payments. Once the owner of the settlement or annuity accepts the offer, he or she retains the legal rights to the payout but agrees not to receive the lump sum payment until certain conditions are met. These conditions may include a waiting period as determined by the company.
Diamond negotiates lump sum purchases from holders of annuities and structured settlements, in order to obtain their future payments. In the past, when these types of payments were offered to individuals, the companies that made the offerings usually paid very little in return for future payments because selling these future payments required under the settlement or annuity owner to surrender some or all of their rights to future payments. In addition, in most cases these future payments were obtained with little or no interest. Because of this, many of the recipients did not realize a substantial amount of money would be available to them and may have been hesitant to agree to sell their future payments. It is for these reasons that Diamond negotiates discounted annuity/structured settlement purchases.
Another reason why some people opt to sell their future payments is to create additional liquid capital to fund a new venture. Some retirees move into a higher paying position within their company without receiving any increase in salary, while others retire with less than full retirement pay but the funds are sufficient to launch a new business. In either case, retirees can withdraw some, but not all, of their annuity or structured settlement payments to allow for new investments. A third possibility is to divert payments to a life insurance or investment policy in order to generate tax-free income.
When you decide to sell your structured settlements, it is essential to choose a reputable buyer who will buy at a discount. A good company will negotiate with you on your behalf and provide a realistic lump sum purchase price. A reputable buyer will use a team of financial experts who will evaluate your needs and circumstances to develop an offer that is realistic and acceptable to you. It is also important to understand that in some states, companies that buy structured settlements are considered “callous” by regulators and can be penalized with civil fines as well as legal action. To avoid being shut down, it is best to check with your state authorities about the sale of structured settlements.
Structured settlement buyers are motivated to offer generous deals because they receive a large lump sum of money when the deal is closed. Many buyers purchase structured settlements as a one-time-only investment where the returns are guaranteed. This assures them that the transaction will not default. After all, if they did not receive a high enough lump sum for the amount they are buying, they would not be able to stay in business.