What are these schemas called structured settlements? Why do they prevail and what are possible pros and downsides? Structured settlements are also defined as episodic payments. They are laws that the legislature has created where the defendants petition, and the plaintiff agrees, that some or all of the payments endowed by a judge or jury are paid to the injured consumer over a drawn out time frame, perhaps as long as 20 years!
Archive for April, 2008
Webmaster - Apr - 29th
Webmaster - Apr - 26th
If you think about it, your life insurance settlement option used is vital when it comes to what you really want your policies to do. Most life insurance agents don’t discuss this in detail. The online life insurance salesmen are even worse. Special consideration has to be given as to whether or not this policy is intended for family protection. Is this policy intended to provide an income, or is the need a lump sum need. Is the need for a retirement income whether through an annuity or a permanent life insurance policy. Is the policy intended to pay estate taxes.
Webmaster - Apr - 20th
First, know your foe! By that I mean you must understand who you will be talking to. There are two types of people that creditors will hire to deal with their clients. The first is for customer service, to help handle problems and answer questions for account holders. These folks are nice, kind and patient. That’s why they are hired.
The other type is hired for the collection department. They are hired because they are heartless, don’t care about you in any way and are ruthless in getting the money. Once you fall into a collection account, the creditor doesn’t care if you like then any more… they just want their money back.
Webmaster - Apr - 16th
Need money in a hurry, than selling your structured settlement may not be the answer. It can take anywhere from six weeks to four months to get your money. Why you may ask?
A new safe guard has been put in place called a court order. A judge has to rule on if selling your structured settlement is in your best interest. If you don’t have a court order than a tax equal to 40 percent will have to be paid on the total amount of payments being sold. For example: to pay for medical expenses, to buy a house, pay for an education, a business opportunity or to keep from filing bankruptcy may be considered in your best interest.
Webmaster - Apr - 15th
If you’re considering “selling” your life insurance policy you must have some understand the potential tax consequences of the sale.
As a life settlement of an insurance policy is in effect the sale of the policy to a third-party, and not a surrender of the policy to the insurance company. Actually, the policy doesn’t need to have a cash value to be eligible for a life settlement transaction. The tax implications are twofold, and are relatively complex. While the IRS has not issued definitive guidance on life settlement transactions, it has relied on the application of its laws and regulations that address similar situations.
Webmaster - Apr - 9th
I have to admit, I do it too. I complain. Seek better. Complain again. Ridiculous cycle. It’s more of a condition really. A humanity disease, I think we are born with it. It is almost as physical and useful as a regular appendage. Don’t get me wrong, being dissatisfied with here, has got us all to a lot of great theres. Otherwise America would still be in dreary old England and we wouldn’t have the 4th of July.
Webmaster - Apr - 9th
Have you ever looked around and wondered how everyone is buying houses? Are they really doing that much better than you are? Maybe. Maybe not. Some people have gone deep into debt to purchase a home and are teetering on the brink of financial free fall. Others used creative unconventional financing to afford a home. There may be not-yet discovered risks and consequences to this type of home financing. But there is a fairly substantial group of people who were able to buy a house because they were the recipients of some unexpected or untraditional cash windfall.
Webmaster - Apr - 3rd
The concept of structured settlements is fast gaining popularity and is proving a better alternate to lump sum payments made for personal injury claims.
A structured settlement is a contract between the insurance company and an injured consumer. As part of the contract, it becomes obligatory for an insurance company to pay a periodic installment to an injured party or to the surviving family members, as the case may be.
While a lump sum payment is a feasible option for any minor injury, periodic payments can be of advantage to those inflicted with injuries requiring treatment spread over a period of time. In times of hardships, a steady stream of income can provide the much desired relief and peace of mind.