Why Companies Purchase Structured Settlement Payments

It has come to our attention at Settlement Quotes that many clients would llike to know why companies want to become the recipient of their structured settlement payments or why they want to purchase the structured settlement.

There are many answers to this question. The most important answer involves the financial strength of the structured settlement annuity that is created to fund the personal injury settlement.

Many of the insurance companies offering products to the structured settlement industry are AA or AAA rated by Standard & Poor's. This rating ensures factoring companies that the annuity they are receiving has strong financial backing. These factoring companies take these structured settlement and annuity backed notes and add them to a larger portfolio were they will securitize these structured settlement annuities.

The money a structured settlement recipient receives during a structured settlement factoring transaction is not the true value of the structured settlement. When factoring companies purchase/ transfer payments into their name, they need to cover worker salaries, advertising, transfer fee's, and other costs not worked into the time value of money equation. All of these costs factor into the deduction of money the structured settlement recipient receives when they transfer their payments to a factoring company.

With this in mind a structured settlement factoring company has risks when purchasing a settlement annuity. This is were the commission for the company takes place. Many factors are worked into the overall commission and cost of money that a factoring company has to calculate before purchasing these annuities. An annuity with a payout 10 years from now is a greater risk than an annuity that is currently paying out. These are the risks the factoring companies are willing to take because these annuities are backed by strong financial institutions.

It is important to ask yourself whether selling your settlement annuities to a larger firm is always the best idea. How many other fee's are worked into your lump sum payment?

At Settlement Quotes we eliminate the large commissions that factoring companies take from your lump sum settlement.

Benefits Behind a Structured Settlement Annuity

• Benefits of a structured settlement.
• Structured Settlement FAQ

Structured settlements are designed to provide a steady stream of income over a long period of time. This time can annuities allocated time period. If bad investments are made with a lump sum settlement, then vary from a few years to a lifetime. A benefit to receiving a structured settlement over a lump sum settlement is that a steady flow of income is divided up for you during the structured it will be difficult to spread it out over several years.

A structured settlement is tax free through federal and state levels during its payout periods, but a lump sum settlement payout that is invested is not tax free. As stated before, a few bad investments could mean a lump sum settlement will not last the duration of a lifetime. A million dollars in an account looks like it could last forever but after medical expenses and daily living expenses this lump sum settlement may not last nearly as long as a structure settlement annuity would.

The second benefit to a structured settlement is the vulture factor. Many individuals prey upon elderly people who have a lump sum of cash. A lump sum settlement can be dangerous if precautions are not taken to protect a loved one. With a structured settlement this factor will not come into play. A fixed income will provide a worry free atmosphere for the individual receiving the periodic payments.

The third benefit to a structured settlement is the expense for the defendant. Many defendants will settle outside of court to avoid the large attorney's fees usually created by an ongoing court battle. The argument is that the defendant could win the case. This is true, but the defendant could also come out much further behind than if they just settled outside of court with a structured annuity.

The benefits of a structured settlement listed above are not the only benefits of a structured settlement. This article is meant to outline the important facts of a structured settlement.

Settlement Quotes does not create structured settlements. We are a structured settlement factoring company. Financial times change for different people at different times, we provide a service to cash out a structured settlement, offering a lump sum in return for those future payments. There are many reasons to use this option, but it is not recommended from Settlement Quotes to use this financial route if it is not needed.

If you would like to receive a lump sum of cash for your structured settlements please complete the form on the left or call 888-665-1257.

About Us

We are #1 -- Structured Settlement Quotes ("SSQ") is America's #1 Structured Settlement Marketplace having served over 11,000 customers and transacted more than $500 million in payments since 2007, and counting.

What we do --  At SSQ we created the first marketplace for you to sell your structured settlement, lottery or other annuity payments. We shop your payments to our Certified Funders, leading funding companies in the industry pre-approved by us, thereby creating a competition to get you the best price while at the same time saving you the hassle and aggravation of having to deal with numerous companies directly.

Here to Serve You -- As you know, the present value of your future payments is dependent upon the discount rate being offered. The lower the discount rate means the more money you get now and the better the deal it is for you.

Before SSQ established its Marketplace in 2007 the industry average discount rate for structured settlements was 19.4 percent*. We felt this was unacceptable and set out to change things.

Over the past five years we have been driving down discount rates. In 2011 SSQ's customer average discount rate was 8.67 percent.

While the funding companies may not like us, we don't work for them.  We are here to serve you.

Service Level Commitment -- Our highly trained Customer Service Experts are standing by to provide options that are in your best interest and answer any questions you may have. We stay in touch with you and monitor your case throughout the court ordered transfer process to make sure you are being serviced well and are funded your money in the shortest time possible.

Strength and Experience

SSQ is a Nationwide company in business since January, 2007.

SSQ is an A+ Rated Better Business Bureau Accredited business.

Call us at 1-888-665-1257 and see what your Structured Settlement, Lottery or other annuity payments are worth today!

*see California Attorney General Report 2004