What is a Structured Settlement?
A Structured Settlement is a common method of resolving personal injury claims and workers’ compensation claims. It involves the purchase of an annuity, an insurance contract, from an annuity company when resolving your claim with the defendant. The annuity company guarantees you regular payments for some predetermined period which will eventually be replaced by one lump sum payment.
How soon can I get my money?
No, you will have to wait. The payment you receive will not be an immediate cash payment on your account; instead, it will be replaced by regular monthly payments paid overtime. This is done to protect you from the risk of inflation and market fluctuations, which could negatively impact the value of your settlement money.
Why buy a structured settlement?
A factoring company like JG Wentworth can purchase your structured settlement, freeing you from the annual premiums and allowing you to receive all of your money at once via an annuity or lump-sum distribution. You also want peace of mind knowing that the annuity company is taking care of you for the rest of your life.
What is an annuity arrangement?
An annuity arrangement is a combination of an insurance contract and a savings plan for the policyholder’s benefit. The policyholder agrees to receive an income stream from an insurance company for the rest of their life in return for agreeing to make regular monthly payments over time until they are eligible to receive all or some portion of the principal balance as a lump sum payment from the insurance company. A structured settlement company will offer both annuity and lump-sum options in some cases.
Who can get an annuity arrangement?
A structured settlement arrangement is available to most people injured or diagnosed with a medical condition that causes long-term disability. If you were injured on the job or were diagnosed with a medical condition resulting in permanent and total disability, then you may be considered suitable for an annuity. The types of injuries and conditions eligible for this benefit include:
- Personal injury.
- Work-related injury or illness.
- Occupational diseases.
- Disabilities due to congenital abnormalities.
How much can I get?
The terms of your settlement will determine the amount you may receive. The amount could be as little as $100 a month or as much as $100,000 or more, depending on the terms of your agreement.
What does it cost?
An annuity company works with its customers to determine the best option for each individual based on their specific needs and wishes. In general, annuity payments start at around 6% when purchased from an insurance company and increase over time to provide a relatively steady income stream for life.
What is the minimum amount I will be receiving?
The minimum monthly payment is usually around $100. It may be lower if you have a lump sum or higher if you choose an annuity.
How much should I expect to receive each month?
The amount can vary, depending on your situation. If you receive a structured settlement, an annuity company will work with you to determine the right amount based on your specific needs and wishes. The amount of money you receive cannot exceed what is available in your trust account at the end of each month. If there are insufficient funds in your account, the payment will be temporarily delayed until there is enough money is in your account to cover these payments.
What is a structured settlement broker?
A Structured Settlement Broker or Structured Settlement Consultant is a licensed professional who assists individuals who have received structured settlement payments and are considering selling the rights to those payments to an annuity company. SSB’s are licensed in the state of their residence and are bonded or carry errors and omissions insurance, just like lawyers and accountants.
Can I get the best offer directly from an insurance company?
The insurance company that currently holds your structured settlement payment rights will be able to provide you with the best offer; however, it would not be in your best interest as it may be lower than the offers you can receive from a broker.
In summary, a Structured settlement company is a company that specializes in purchasing structured settlements, annuities, and viatication. Structured settlement companies are held to the highest ethical and moral standards and are licensed in the state of their residence. As such, they cannot provide legal advice or act as your attorney or counselor in any way. They work with you, your attorney, and your family to purchase your annuity. These payments will be deposited into a trust account until all required paperwork, including an affidavit, has been completed.