Filtering Out Structured Settlement Buyers

Filtering Out Structured Settlement Buyers

Long time readers of our blogs, know that we have focused on the value of finding a structured settlement buyer you are comfortable with before you commit to getting

Which Structured Settlement Buyer is Best for You

Which Structured Settlement Buyer is Best for You

cash for an annuity.  The truth is that this undertaking is more important than ever.  It seems with each passing day, another website pops up or another person claims to be an experienced structured settlement buyer.  How do you, the person looking to sell a structured settlement for cash, makes heads or tails of these claims?

It is important that you do not leave your common sense behind when filtering out which structured settlement buyer to chose.  While a pretty website is nice to look at, the truth is there is no correlation between the appearance of a website and the quality of the structured settlement buyer.  Nowadays, a good looking, comprehensive website is fairly easy and inexpensive to put together.  What you really need to do is look past the website and dig deep into the experience and professionalism of the people behind the website.

While you may search things like “reviews of structured settlement buyers” or list of “best structured settlement buyers”, this to may lead you down a path that is misleading.  Some of the websites you find will be merely paid listings, where a structured settlement buyer remits a fee to the website domain owner and in exchange the domain owner includes the company on the list of best structured settlement buyers.  There may be no vetting or reviewing of the structured settlement buyer before inclusion on this list– merely, you pay and you are included.  While this may not always be the case, we advise to be careful of any list that claims to rank the best structured settlement buyers.

So what are you to do?  While the first step may be to contact a company and get a feel for whether they are trustworthy and a group you could potentially work with.  Probably best to speak to 1, 2 or 3 structured settlement buyers- more if you think appropriate.  When you settle on moving forward in greater detail with one or more, you can ask for references.  References could include former customers that have worked with the company to sell a structured settlement or outside professionals that may be willing to act as references.  While in each case the process may be cumbersome, getting to a third party outside the organization of the structured settlement buyer  may be a good idea.  You can also always ask a professional you know for a reference or a referral or have them contact structured settlement buyers on your behalf.

You can reach Catalina Structured Funding at 800-317-3769.

Life Contingent Payments from an Inherited Annuity- Understanding the Documents

Life Contingent Payments from an Inherited Annuity- Understanding the Docs

Cashing Out Life Contingent Annuity Payments from Structured Settlement

Cashing Out Life Contingent Annuity Payments from Structured Settlement

From time to time we will get a call from an individual that has inherited a structured settlement annuity.  The inheritance usually comes from the death of a family member- although like many assets, a person can bequest the remaining value of their annuity structured settlement to any person they like (in most cases).  Often times it is a child that inherited the structured settlement from a parent and in other unfortunate situations it is a structured settlement that was payable to a child/minor and inherited by a parent.

Since the person that contacts us with an inherited structured settlement is not the original annuitant, they are often not as familiar with the benefits due under the annuity.  In rare circumstances, the person may know that they inherited the structured settlement or are supposed to get the rights to the remaining balance in the annuity but are not entirely sure what is left to be paid by the life insurance carrier.  We are happy to talk to you about the circumstances surrounding your inheritance and if need be facilitate you getting the information you need to determine what you are actually entitled to.

Keep in mind that during the course of the original annuitant’s lifetime, he or she may have previously sold or assigned a portion of the structured settlement for a lump sum.  Through court records and in some cases, through speaking with the annuity issuer, we are able to get you information about what if anything was sold during the annuitants lifetime and what remains.  This is a first good step and you may already have this information from the probate matter or as a result of receiving an updated benefits letter from the annuity company.

If you are looking at the annuity contract itself, or the underlying settlement agreement or qualified assignment, you may see reference to “payable for life” or “life contingent payments”.  These payments are different than the guaranteed ones in that they cease being made (or never get made) once the annuitant passes away.  Consequently, if you have inherited a structured settlement and the annuity documents refer to “life contingent structured settlement payments” that the annuity company guaranteed to make, you should note that the death of the original payee of the structured settlement resulted in the termination of the annuity issuers obligation.  This may be slightly confusing but a careful review of the documents and understanding the nature of life contingent payments will bring clarify.  We are happy to further elaborate and explain.

Contact Us About Life Contingent Structured Settlement Payments or Inherited Annuities at 800-317-3769.

All Structured Settlement Buyouts are Not the Same

All Structured Settlement Buyouts are Not the Same 

As a person looking to sell a structured settlement that has spoken to various buyers you may have many offers on the table.  How do you differentiate the offers to determine which is the best structured settlement buyer for you to elect to do business with may be issue you are currently grappling with.  In order to truly consider the top alternative for you, you must really understand the offers.

Look at the Numbers Carefully Before Picking the Best Structured Settlement Buyer for You

Look at the Numbers Carefully Before Picking the Best Structured Settlement Buyer for You

The first step, and maybe the most obvious, is to determine whether the structured settlement buyers are looking to buy the exact same structured settlement payments.  If you have a decent size annuity from the settlement of your lawsuit (or an annuity you inherited), you may be surprised by the number of options you have.  Different structured settlement buyers may be offering to purchase distinct portions of your structured settlement for a lump sum.  When comparing offers you must take the time to determine if you are truly being offered apples to apples. In other words, are your best structured settlement buyout proposals for the same payments and the same amount of each payment.  For example, if you get $2000 per month for the next 20 years, are all the structured settlement buyers offering the lump sum for the same period and same amount, or are some making offers for 10 years and $1,000 and others looking to buy $750 for 15 years.

Next you want to determine what the NET amount you will receive will be.  That is to say, some companies that buy structured settlement payments may make offers that reflect the gross amount payable to you and others may refer to the net.  The

Do Not Be Confused About Your Purchase Price When Selling a Structured Settlement to a Buyer

Do Not Be Confused About Your Purchase Price When Selling a Structured Settlement to a Buyer

gross amount to buy structured settlement payments may not reflect certain fees and costs that will be deducted at the time of funding.  Lets say you are being offered $21,500 as the gross amount payable to you but the fine print in the contract and on the disclosure note that legal or administrative or processing fees will be deducted from the gross amount.   If the processing, admin and/or legal fees total $2,000.00, this means that at funding you will receive $19,500 and not the gross amount of $21,500.  The $19,500 represents the NET amount and will be the actual amount you receive.

Often times you can quickly locate any difference between the gross amount and net amount by looking at the state issued disclosure statement.  This document often requires many of the key financial terms of the transaction.  The best structured settlement buyer will provide you with the disclosure statement in compliance with the state law where you live.  Each state law is slightly different so if the disclosure statement where you live is silent as to gross and net amount, you should specifically inquire with the structured settlement buyer and ask them to put the information you want in writing.

You can reach Catalina Structured Funding at 800-317-3769 for more information on any topic contained in this article.

Reverse Engineering the Sale of Structured Settlement Payments

Reverse Engineering the Sale of Structured Settlement Payments

Much is said about how much you may be giving up if you were to sell structured settlement payments for a lump sum.  Lets be clear, you definitely “give up” something when you convert a future amount of money for an immediate lump sum.  Think about it, someone is giving you money today and by the very nature of the transaction has to wait months if not years for the money to roll in.  You can NEVER get a lump sum today for an amount equal to collective face value of the structured payments you are selling.

How is it than that you determine if you are getting a fair and reasonable price for your structured settlement payment due in the future? Any such discussion should start with 1) do you really need to sell structured settlement for a lump sum?  2)  have you considered alternative options to cash today that would not involve your sale of structured settlement payment rights.  These two over arching issues, along with several others are a good place to start before you sign any contract or even get quotes to cash out your future annuity payments.

If you have determined that selling your structured settlement payments are the right thing to do, the next step is to evaluate whether or not there is an option beyond the sale of the entire structured settlement. Options may include partial and deferred sales.  In order to determine which option is right for you, it is often recommended that you shop around to several annuity buyers to allow them to get you a quote or quotes.  This process will not only allow you to see different options but will also allow you start understanding what the market may bear in terms of a purchase price for your structured settlements.

Figured Out How Much You Really Need Before You Sell A Structured Settlement        800-317-3769

Figured Out How Much You Really Need Before You Sell A Structured Settlement
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Take note that in most cases, if not all, cashing out a small annuity may be require you to sell all of your structured settlement payments- if you were to elect to sell.  Larger annuities, those with greater face value, may provide more varied liquidation options.  This may or may not be the case depending on restrictions your annuity issuer puts on the payment stream with respect to selling only part of structured settlement payments.

You need to be an educated shopper and understand the ramifications before you elect to proceed.  Calling CSF friendly and knowledgeable staff is a great place to start or finish when looking to sell structured settlement.

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Step by Step- Structured Settlement Companies

Step by Step- Structured Settlement Companies 

There is some very good information around the internet regarding structured settlement. There is also a lot of garbage.  This is readily apparent to anyone that searches for structured settlement companies.  You will find that this phrase is utilized in a variety of confusing ways.

 At the most pure sense, a structured settlement company is also known as an annuity issuer.  These are the companies that issue the contractual commitment to make a single or series of payments over time to a particular individual or individuals. They are the companies that are well known and consist of entities like: Metlife, American General, Allstate, Symetra, John Hancock, Genworth Pacific Life or Transamerica.  And some maybe less known, but respected, companies, like Aviva. There are some older annuities issued by companies like Executive Life of New York or Aurora National.

When you are looking to get a structured settlement, these are the companies that your lawyer or his agent will be looking to arrange your structured settlement.  They will provide quotes that allow you to assess whether locked your money in a structured settlement is a prudent investment that makes sense for you.  Often times the structured settlement annuities will provide for lump sums or monthly payments or in some cases both.  The monthly payments may or may not include a cost of living increase (at varying rates) and may or may not contain a life contingent phase after the guaranteed period ends.

You may, when looking for structured settlement companies on the internet, stumble upon companies willing to pay you cash for structured settlement.  These are the companies that will provide you a lump sum if you are already in a structured settlement and prefer/need to get a lump sum for some or all of the future payment stream. These companies do NOT put in you in a structured settlement but instead provide liquidation options.  The largest and by far the best known of these structured settlement companies is JG Wentworth (in Pennsylvania).

If you are in the market to convert a structured settlement to a lump sum this may be what you meant to find when searching for a “structured settlement company”.  Mind you, if you are in this market, proceed cautiously and methodically before signing any agreement.  Different structured settlement companies (or more accurately in this case, structured settlement buyers, will offer you much different amounts for your future payment stream.  Like with any large financial transaction, speaking to multiple outlets is simply prudent.

Catalina Structured Funding is one of the most respected buyers of structured settlement payments in the country. They can be reached at 800-317-3769.

Confusion Regarding Valuation of Life Contingent Structured Settlement Payments- A Guide to Selling

Confusion Regarding Valuation of Life Contingent Structured Settlement Payments- A Guide to Selling 

Shopping around your life contingent structured settlement payments may prove to be more of an undertaking then you initially thought.  We find that this is often the case for individuals who have worked with the same company more than one time and are either told by that buyer that they cannot help them get cash for life contingent payments OR have realized that approaching more than one annuity buyer may provide to be beneficial.

When working on getting a quote for life contingent structured settlement payments, there are important factors to keep in mind.  The most important factor may be your health.  Because life contingent payments (as the name suggests) are contingent upon you being alive, your age and health become major factors in assessing and determining what a buyer might be willing to pay you.  It is important to understand that a company that pays you cash for life contingent structured settlement payments will only get those monthly (or in rare cases lump sum) payments if you are alive when they become due and owing.  As a consequence, assessing the likelihood of this factors into the valuation.

With this in mind, you should consider exactly what your goals are and how much you are looking to raise before you speak to a life contingent structured settlement buyer.  Many times, when dealing with life contingent payments, there is a diminishing value for year (by way of example) that you elect to convert for a lump sum.  You may be wondering what that means.  We all know that further out payments of the same face value are worth less than those payments due sooner.  In other words, the $1,000 a month due in 2029 from Metlife is generally worth less to a structured settlement buyer than $1,000 a month due in 2039.

The issue of payments being deferred longer are less valuable that more immediately due payments is frequently compounded when you are talking about life contingent payments.  For example, a $2,500 per month guaranteed payment in 2029 is worth less than a $2,500 per month guaranteed payment in 2035, the difference in value of these two payments MAY be more dramatic if they are of the life contingent nature.  While this is not always the case, it frequently is.  The most obvious reason (and the older you are the more dramatic the impact) is that with passing time mortality risk increases on some level.

Get Quote for More Than Range When Getting Cash for Life Contingent Payments

Get Quote for More Than Range When Getting Cash for Life Contingent Payments

Even though there is “no rule” of thumb in this regard, you may want to get multiple quotes for life contingent payments of varying periods of times.  This will allow you to figure out which transaction makes the most sense for you.  Ultimately, getting quotes from multiple life contingent annuity structured settlement buyers is always a good idea anyway.

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