Structured Settlement Brokers
Structured settlement brokers are professionals who work with lawyers in developing structured settlements. A structured settlement is a financial arrangement often used to compensate individuals who have been severely injured. They are also used to compensate jackpot lottery winners, compensate individuals who win discrimination cases, and as life insurance annuities to provide heirs with inheritance funds.
Structured settlement brokers act as consultants and provide information regarding the different types of annuity payment plans which are best suited for attorney's clients. Brokers discuss the advantages and disadvantages of each type of structured settlement and assist in negotiating the best deal for the client.
A variety of structured settlements exist. Some provide income for a few years, while others provide compensation for life. Much depends on the type of legal case or amount of lottery winnings.
In the case of injury settlements and discrimination cases, monetary rewards are determined through litigation. Structured settlement awards are based on multiple factors which encompass the Annuitant's required medical care, loss of income, projected economic conditions, and life expectancy.
Structured settlements offer considerable flexibility during the planning phases. Structured settlement brokers must consider numerous factors such as anticipated funds for ongoing medical care; living expenses including mortgage or rent payments, utilities, and food; retirement income; or continuing education expenses for minor children.
Structured settlement brokers must account for factors which currently exist for the Annuitant to determine how to structure annuity payments. Structured settlement payments can be established to pay Annuitant's monthly, quarterly, bi-annually, or annually. Under certain circumstances, Annuitants may require lump sum cash payments to cover medical tests, surgeries, physical therapy, home nursing or the costs of rehabilitation facilities.
Annuity payments are guaranteed by life insurance companies. Insurance companies calculate premiums based on Annuitant's risk factors such as history of heart disease, cancer, obesity, smoking, and alcohol consumption.
Life insurance company ratings include Preferred, Standard, and Sub-standard. When individuals apply for life insurance on their own and have a sub-standard rating they are usually declined coverage. However, when annuity payments are issued to Annuitants with sub-standard ratings, it often results in a better rate of return.
It is important to work with a well-established structured settlement company that has access to multiple life insurance providers. Brokers who work with multiple providers can obtain the best policy based on Annuitant's needs and ensure they obtain necessary funds which allow them to continue with the same level of lifestyle they had prior to injury.
Once structured settlement agreements are signed they cannot be changed. Under certain circumstances annuities can be sold in whole or part. Some states prohibit the sale of structured settlement payments, while others require court authorization. Therefore Annuitants must retain the services of a structured settlement broker or lawyer to negotiate the sale.
When seeking out a structured settlement broker it is important to locate brokers who are registered with the Department of Justice and are covered by errors and omissions insurance. Engage in due diligence to ensure structured settlement brokers are licensed, bonded, have a solid track record, and can be trusted with sensitive information.
We invite you to learn more about how structured settlements work and locate tips and resources for hiring a structured settlement broker in our structured settlement and annuities article library resource center. Subscribe to our mailing list to receive updated information and notification when new articles are published.