Do I really want a structured settlement company?
An individual who receives a large cash award can take the services of a structured settlement company and avail the cash in a variety of ways. The settlement amount is paid by a defendant in litigation and it takes a long time for the beneficiary to acquire the total amount. A structured settlement company, in its capacity as a third party financial service provider, can help those who receive substantial amounts of money by offering them the money in a short period of time.
A plaintiff who is to obtain a monetary award from a court in the form of a structured settlement may be in need of immediate cash to cover medical expenses or the cost of litigation. This may not be possible with a structured settlement; structured settlement companies can help in such situations by offering a lump sum for either the entire amount of the settlement or a portion of it.
Structured settlement companies also offer the option of equity annuities that provide protection to the principal which earns an interest as per a guaranteed minimum or in relation to the stock market. Structured settlement companies are also capable of offering manageable access to large amounts of cash to those who win lotteries and sweepstakes. It is in the interest of the beneficiary to do a background check on the structured settlement companies they are comparing; one should go for a company that offers the most competitive rates and has a reputation for ethical dealing.
All said and done it is important for an individual to first understand whether he actually needs the service of a structured settlement company. This is because these companies operate at a profit and the lump sum offered by them is less than the amount of structured settlement sold. Also, structured settlements are guaranteed and tax-free. This is not the case with a lump sum payment, which once in the hands of an individual may be difficult to manage.
One should take the help of an attorney while evaluating structured settlement companies; attorneys help with the paperwork that can include Structured Settlement Agreement, Annuity Applications, and Qualified Assessments.