Money Skoop » settlement

Learning About Senior Life Insurance Settlements

admin — Sun, 25 Jul 2010 00:13:05 +0000

Most seniors hear about life insurance policies and the reasons of owning one. We might consider owning one for the future. It sounds pretty much like a good investment because if we get into an accident or worse die, we will not leave our family destitute because we have saved something for them which they can make use of. At times, when we can think that we can no longer make use of our investment, we allow it to lapse, which is not good. So, aside from making it lapse, why go for senior life insurance settlements and use the money.

Senior life insurance settlements involve purchase structured settlements to an interested finance company instead of returning it to the company where you invested your money on. The finance company can give you a valuable amount for the surrendered policy. If you really aim for the highest deal, hire a professional broker to help you get what you want.

The senior life insurance settlements work like this. The finance company will buy the insurance policy and once you agree on the amount and sign the documents, you will no longer own your life insurance policy unless you only sell a part of your money stream. If you only sell a part of your policy, you can still obtain benefits from the remaining parts but once you have given it all, you will no longer have it but you will be receiving a lump of cash for that.

There are a lot of reasons why a person go for senior life insurance settlements. It might be personal like when he doesn’t have any family or loved one to look after, pursuing for the policy might be useless. So, selling it is a good idea and then using the money for whatever he likes to do is more appropriate. In addition, if he also fails to pay for the monthly premiums, it is also better to sell the policy.

Owning senior life insurance settlements can be great if you know how to gain from it. The benefits you can get can be overwhelming.

Structured Insurance Settlements

admin — Tue, 23 Mar 2010 13:08:27 +0000

Structured insurance settlements didn’t come to the United States until the 1970s as allowable option instead of the lump sum payment. Some financial advisors prefer their clients get structured payments because the client will receive payments long after the pain that caused the settlement has passed. The insurance companies prefer the structured settlements because it’s not a large of a hit to their cash flow and it balances out their risk over a longer period of time. I personally hate the structured settlements and think you should sell structured settlement payments as soon as possible. If the judge forces one make sure the payment is assigned to a third party or an annuity because you don’t want to have to depend on the defendant to keep making the payments.

Why the Structured Payment Sucks

The structured payment is horrible because a judge and lawyers determine what the worth of your money is not you. Many times they’ll argue the value of the money is inflation or the payback on a treasury bill. However, if you have a mortgage or high interest credit card debt at 24% your personal ability to earn more money with the lump sum would have made a much larger impact in your life. Even if you have no debts you may have a business idea or understand some investing basics. Again if your business or investments earn 8% – 12% per year you could be multiples richer over the life of your payments. The last reason structured payments are horrible is they make most people worse with their money and job habits because they know the next check is coming.

Sell The Payments

Good thing for you it is completely legal to sell the payments to someone else for a lump sum of money, they can even purchase structured settlements online. There are lots of structured settlement brokers who will be happy to discuss options with you. Feel free to call around and negotiate, this is your money and they want to buy the contract from you. If you need help with the math hire a financial advisor to review each offer with you. Often the terms can be complex, and you’ll need someone with experience in the area to decipher the terms into common sense. You’ll need to be open with your financial advisor so they can understand how you intend on using the money so they can pick the terms that work best for you, and you will need to have some information ready before you can obtain a structured settlement quote.

What is Your Settlement Worth to You

admin — Thu, 17 Dec 2009 21:24:16 +0000

Why would someone sell a settlement for what would probably be less money in the long run? Lots of reasons, and they usually revolve around the immediate need for cash that only your future payments can cover. If you can provide proof of what your settlement is and how much you are owed, you will have enough information to at least start filling out some applications.

Now, back to the companies on TV that offer to pay cash for court awarded settlements even before you win the case. Can they do this? Sure, but read the fine print. After all, does it make sense that anyone is going to give you money you haven’t won yet? They say you won’t need to pay anything back if in fact you don’t win, but what they don’t tell you is there are some pretty hefty fees associated with not winning the case!

Another common cash for settlement segment is selling your annuity payments. An annuity is actually a form of an insurance policy – the insurance company is insuring your investment. In other words, your original investment won’t decrease in value. If you started your annuity a few decades ago your payments may now be at a point that doesn’t make much difference in your monthly bills; you might think selling the annuity is a great deal.

However, before selling your annuity or some of the payments, check with a financial advisor. This is your money already! It might make better sense to just pay the penalties associated with early withdrawal rather than losing even more money by selling them to a company who will pay you less than they are worth.

No matter how badly you need the money, read the fine print and get some professional advice before signing anything. It is usually recommended that you have an attorney look over it as well, so that you are certain everything is in order.