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Structured
Settlements Information :
5 Mistakes People Make When Selling
Structured Settlements
by Louise Pointer
Mistake One: Agreeing to sell to the highest bidder.
Unfortunately, some brokers or structured settlement/annuity
sources will make a high offer just to get someone under contract.
Then they will start making excuses and reduce the offer.
Once you are under contract with a funding source, it is very
difficult to back out. Even if you are able to pull out, you
will have to start the whole process over again losing valuable
time. Mistake Two: Believing the funding source when they
say they can close very quickly.
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Also
read:
• Lump
Payment or Structured?
A structured settlement involves a financial or insurance
arrangement which includes a periodic stream of payments,
that a claimant or plaintiff accepts in order to resolve
a personal injury claim or other legal case.
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The time to close is mostly dictated by individual state laws,
both the state the insurance company has their home office
and the state where the client resides. In some states, it
is possible to close in about a month. In other states, it
can take as long as four months. With the rest, it is somewhere
in between. Don't believe it if someone says they can close
in a week or two.
Mistake Three: Not determining how much you really need and
thinking you must sell the entire remainder of the structured
settlement or annuity.
Why sell a $200,000 settlement when you only need $30,000?
If you need additional cash sometime in the future you will
be able to sell more payments or lump sums at that time. By
doing it this way, you will receive more cash over time than
if you sell all payments at once; and it allows you options.
Mistake Four: Letting emotions or being desperate control
our decisions.
We have all gotten excited or felt desperate when faced with
various situations. We could be excited about buying a home
or starting a new career; or we could be feeling desperate
because we are about to lose our home or are facing high medical
expenses. Even though we are excited or desperate, we really
must think through our decision. Some brokers or funding sources
will try to take advantage of us and our situation. We should
discuss our situation with a trusted family member, friend,
attorney, pastor or whomever. We do not want to ruin tomorrow's
financial options by making irrational decisions today.
Mistake Five: Not doing your due diligence on the structured
settlement/annuity purchaser.
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Also
read:
• Premium
Financing Hedge Uncertainty
Affluent insureds can use leverage to buy life insurance
using recourse and nonrecourse premium financing. After
two years, the coverage may be sold as a Senior Life
Settlement, or retained.
•
Presettlement
Funding Could Help Injury Victims
It
is a new service that can help injured parties while
in litigation. This service can provide cash to injury
victims for living expenses or to complete the lawsuit,
and is non-recourse.
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Call the attorney general in your residence state and the
state where your funding source is located to see if there
are any complaints about that funding source. If there are
a lot of complaints against the source you are considering,
take that as a red flag and move onto the next source. Your
due diligence should be completed before agreeing to anything
or signing any agreements.
About the Author
You could spend hours researching all of your options and
still not have a clear idea of what to do... You need a professional
on your side. With over a decade of experience, Louise Pointer
can help you avoid the mistakes in this article as well as
a few more. Click -> http://www.NationalFundingResources.com
5
Mistakes People Make When Selling Structured Settlements
structuerd settlemetns, lottery winnings, annuities,
setlements, ettlements, settlemnet
• Arizona Structured Settlement Statutes
• Florida Structured Settlement Statutes
• Florida Viatical Settlement Statutes
• Viatical Settlement Broker
• New Jersey viatical settlement
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