Financial Articles

Structured settlements are structured cash payments through an annuity system that is established to compensate injury victims for their losses. Structured settlements are also helpful with people who may have temporary or permanent disabilities, illegal death, serious injuries, or any other problem that results in the effect of the main wage earner of the household.

Structured settlements have not always been available. In 1982, Congress passed The Periodic Payment Settlement Act of 1982, which legally recognized structured settlement cases in physical injury cases, also encouraged people to use them by granting them tax-free status. This act allowed people to financially benefit and protect themselves from the dangers of a lump sum settlement meaning money that serves as a complete payment, and gave courts the ability to make such an award where there was a realistic potential for abuse of the proceeds of a lawsuit. The structured settlement is generally set up as some sort of an annuity that makes payments according to the prescribed and agreed upon schedule.

Structured settlements payments have been shown to offer a helpful, secure and guaranteed source of lifetime earnings to parties in personal injury or other cases. Severe injury where there is long-term treatments and medical costs will necessarily be incurred, and to meet the family and living expenses. A person who has a temporary or permanent disability can use a structured settlement by being guaranteed the cost, if any of treatment is covered. If illegal death affects the main wage earner of the household then this can induce financial bankrupt, can assist put back the monthly income that is lost and offer the family piece of mind knowing the rent, bills, and other expenses are paid for.

Not everyone can receive a structured settlement. Only people with a physical injury and they must purchase the structure at the time of the settlement. Structured settlements are very safe. Structured settlements can have many different requirements and are subject to different laws.

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Viaticum is the Eucharist given to a person on the verge of death, or to one who is facing a possibility of death. It is no wonder, then, that this Latin word would be the root of the term – Viatical Settlement.

Viatical Settlement involves the sale of a life insurance policy to an investor. A Viatical settlement is usually carried out by the terminally ill – those who face penury by the cost of maintenance alone, those who expect to live not longer than two years. That being said, a Viatical settlement is purely a financial transaction. The viator, the one selling the life insurance, sells the policy at a discounted price of the death benefit of the policy and is provided with immediate cash settlement. This usually helps in paying the medical bills of the aged person.

The investor is the buyer of the policy. The investor has two options. One is to sell the policy to a third-party, or to stash the policy as a company investment. Viatical settlements are especially attractive to investors and the rates of return, though not guaranteed, are potentially high. As with any kind of deal, risks are always present for both parties. For the Viator, the primary risk is settling for a low price. Of course, compared to the future premiums, the price would be lower, but there is still the danger of the policy being bought at a song.

For the investor, the risks are greater. There is the probability that the investor will not receive the full death benefit should unfortunate circumstances cause the insurance company to go bankrupt. There could also be the ghost of a chance that the Viator may have committed fraud upon signing insurance forms. Or the Viator may have a miraculous recovery and go on to live for another twenty years.

Viatical settlement should be thought more than twice before being engaged into. This is not a regulated investment and crooks abound, waiting to pounce on the gullible and the dying. Here are sound advices, both for potential Viators and investors:

For Potential Viators:

· Check with your insurer to find out if your policy includes Accelerated Death Benefits. This will get you much more money and you will be paid much faster.

· If you are a member of a Credit Union, seek information about licensed Viatical providers.

· Apply to more than one Viatical settlement company.

For Potential Investors:

· Do not use your IRA for Viatical investments. It is prohibited by the Internal Revenue Code.

· To be safe, do not buy a policy that is within the contestability period. That way, if the viator committed fraud on his application and was discovered, you won’t be left with just a return of premiums.

Structured settlements are the financial agreement between two or more parties that plaintiff compromise a statutory cyclic payment contract.
A structured settlement can protect a plaintiff from having settlement funds dissipated, when they are necessary to pay for future care or needs. Sometimes a structured settlement can help protect a plaintiff from himself - some people simply aren’t good with money, or can’t say no to relatives who want to “share the wealth”, and even a large settlement can be rapidly exhausted. Minors may benefit from a structured settlement as well, such as a settlement which provides for certain costs during their youth, an additional disbursement to pay for college or other educational expenses, and then one or more disbursements in adulthood.
Choosing the right specialty finance company to work with is an important decision, and many people do not know where to turn for advice.The SSA only works with the finest direct funding sources, weeding out expensive brokers and fly-by-night companies. You are about to make a very important decision, and the SSA wants to arm you with the right information to do so.
The structured settlements alliance helps to make this process easy for you by matching you with the best possible financial institution to handle your settlement, and letting you decide how to proceed — putting the control where it should be, in your hands. Get the maximum money out of the structured settlement alliance for your structured settlements and annuity payments. And for Free!