Importance of Working with a Structured Settlement Company

A structured settlement company helps individuals who are entitled to annuity payments. Structured settlements are used to provide income over an extended period of time. They are often used to provide monetary compensation to individuals who have been seriously injured and to payout jackpot lottery winnings.

A structured settlement company has a team of consultants that specialize in specific fields. Staff members typically consist of professionals who specialize in medical malpractice, casualty claims, worker's compensation, and commercial liability.

These specialists work with claimants and defendants to develop compensation plans for the injured person. Instead of providing lump sum cash payments, structured settlements provide regular income for a designated period of time.

Annuity payments can be distributed monthly, quarterly, bi-annually, or annually and paid over a few years to a lifetime.

When a person sustains injury in the workplace, motor vehicle accident, or as the result of negligence or medical malpractice, they might be entitled to a structured settlement. To arrive at this point requires legal litigation.

In most cases, individuals must incur a financial loss of at least $10,000 to qualify for annuity payments. When minors are involved, financial loss of $5,000 may qualify for settlement.

Structured settlements are often arranged to provide claimants with fixed payments.

However, every settlement is unique and can be established in the manner that best suits the financial needs of the claimant.

For example, if the injured party must undergo physical therapy for 6 months, the structured settlement can be arranged to provide adequate funds to cover anticipated costs for therapy. Once therapy is complete, the claimant's annuity payments are reduced.

The structured settlement company helps claimants obtain the necessary funds to cover additional medical expenses. In most cases, a team of consultants work together to ensure the claimant receives adequate compensation for current and future expenses. The company also manages claimants' account portfolios and makes financial investments on their behalf.

Annuity payments are funded through life insurance companies. It is the responsibility of the defendant to purchase the annuity. This is usually done through the defendant's insurance provider.

Working with structured settlement companies ensures claimants receive benefits they are entitled to. Established companies have access to several life insurance companies which allows them to obtain the best annuity for the claimant.

Structured settlement consultants craft settlements to address claimants' current and future financial needs. They work with claimants to develop payment plans that coincide with their monthly expenses.

There are as many ways to construct structured settlements as there are people who need them. However, once settlements are finalized they cannot be altered. Therefore, it is crucial to work closely with a structured settlement company to ensure adequate funds are provided at the time when they are required.

Source: http://business.ezinemark.com/importance-of-working-with-a-structured-settlement-company-17f31f91e56.html

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