When two parties have undergone a legal case and one of them has to pay the other, that situation sometimes call for structured settlement payments. This is because the losing party, or the side who is obliged to pay the dues as a result of legal action, is sometimes not capable of paying monthly annuities; the receiving end meanwhile sometimes prefer to receive a bigger amount of money rather than waiting for it to come at a scheduled day of the month.
Parties who are obliged to pay legal dues therefore seek the help of an insurance company who thus provides them with an annuity policy. This policy is thus used to make the payment to the receiving end at a faster, more efficient timeframe.
Why are structured settlement loans helpful?
These days, more and more people prefer structured settlement payments. This is basically because the money comes faster rather then given at installment payments at a longer timeframe. Structured settlement loans also work in the benefit of the losing party, since they get to settle their bill faster, and give them more time to pay the money lent by the insurance company. Besides, it's not really fun to deal with debts for a long period of time; you'd rather have them settled faster, as this saves you not just from your budget worries, but also emotional stress.
Also, there are recipients who would need a larger amount of money than the sum they expect to receive. This may because of different reasons; they might need to pay for their medical expenses, prepare for retirement, have plans for investment, or purchase a piece of property. If they don't get the sum they need, then they won't be able to fulfill their dues or plans of purchase.
How do structured settlement loans work?
Structured settlement loans work as follows: the person who wants to sell his structured settlement submits the proper documents to those who buy settlements. The documents include the insurance company issuing the structured settlement payment, as well as the insurance policy. The settlement purchaser meanwhile provides a quote, and if the seller agrees to the offer, then they come to a mutual agreement.
Since structured settlement loans are becoming more common in the United States, the country has come up with laws to help parties sell their settlements without putting much risk. This is of course very helpful since they payments are kept safe and protected from scams.
Also, because of its growing popularity, acquiring a structured settlement loan is now easy to do. A lot of insurance companies now purchase structured settlements in exchange of a free quote. This becomes beneficial for both ends since the money to be received now is always more valuable than the money you can get tomorrow. With this, recipients can use the money in better ways than one, and the profits reaped can be bigger than what they were supposed to receive.
Structured settlements are not only a result of legal action; you can find these with lottery winners, as well as people who are granted with large amounts of money, and getting in its full, or at least in larger installments at a shorter period of time is more favorable than any other option.
| Eric Hayes has extensive experience on the subject of structured settlement loans. Visit his structured settlement loan site for free information on the subject. Article Source: http://EzineArticles.com/?expert=Eric_Hayes |
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