What is a Structured Settlement Company?A structured settlement company is any company or business who buys structured settlement agreements from people who want to sell all, or part of, a legally binding contract made between two or more parties to the contract. A structured settlement is a legally binding and enforceable contract.This structured settlement contract could be from a court order made by a Judge in a court of law or it could be from an insurance policy made between the insurer and the insured. There are any number of reasons for a settlement agreement and types of structured settlement contracts but they all represent money to the person named as the beneficiary. A structured settlement company is a company who buys these contracts as a business in the belief that they will profit from them. Some of these companies work on a set percentage of the face value of the agreement while others are open to negotiation. The person or persons who sell their contract needs to be very aware that they will not be able to sell for the full face value of the contract. The 'trade-of' for a lump sum payment is less money. This is because the buyer is taking some risk in buying the contract and is expecting to make money from the transaction. The person or persons selling the contract needs good negotiating skills to maximise as close to the full face value of the contract as possible. If you don't have these required skills or experience then it may be a good time to empower a lawyer to negotiate the sale for you; but if you go this route you need to be aware that they will either be wanting a percentage of the sale or a set fee as payment. If you are thinking of selling your structured settlement contract and there are other beneficiaries named on the contract then all the parties need to be in agreement to sell the contract and be signatories to the settlement. Not all buyers of these structured settlements need to be registered companies as a private sale is also acceptable providing all parties involved in the agreement are signatories to the settlement. If it is an ongoing payment for an insurance claim for a matured life term policy, illness or injury, then the insurance company making the payments needs to be informed and in agreement. If you are thinking of making a private arrangement to sell your contract make sure you consult a solicitor or lawyer before signing anything and to have the new settlement agreement drawn up, authorised, notarized or made legally binding for all parties. |
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