A Better Way To Sell A Structured Settlement - Via Auction

By Author: Clayton Frantz
Total Articles: 113
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Structured settlements were introduced in Canada and the United States in the 1970's. They were introduced as an alternative to lump sum payments, common in insurance settlements and lottery winnings. In the decades since, they have also been accepted as legal financial instruments in England and Australia.

The aforementioned common law countries have decided to include structured settlements in their statutory tort laws. These four countries handle tort law and the structure settlement packages a little bit differently, but the general overall definition applies across the board. In a nutshell, a structured settlement by legal definition is a statutory agreement to pay a specified sum of money over a period of time, on a payment system.

Payment Arrangements

When someone wins a court settlement (or if they settle the case beforehand), the insurance company often gives the winner a choice of taking a specified amount of money in a lump sum, or a bit more money if the insurance company can enter into a structured settlement arrangement. Of course, it is in the insurance company's ...
... best interest to pay the claimant in a structured settlement, because the insurance company can earn interest, during the structured payment cycle, on the full sum of money it would have paid in a lump sum.

The insurance company wins in the profit game, when they get to enter into a structured settlement. They will be able to invest the full sum of money owed, and they get to earn interest or dividends on the money in hand during the payment period.

Structured settlements are most often paid out in the form of an annuity over a period of time. An annuity is also legally classified as a financial instrument. Once again, the financial institution will gain an additional financial advantage, because they can collect interest or earn other kinds of income on the bulk amount, during the payment period.

Annuity And Structured Settlement Buyouts

Structured Settlements for a great deal of clients are the ideal solution. Payments spread out over a period of time allow clients to balance their finances and pay bills in the years to come. Some people get their structured payments $300, $1000 or even more each month. Sometimes they may include lump sum payments many years in the future. This is fine as long as their life is humming along and their bills are being paid. Yet, circumstances sometimes get in the way, and people need the lump sum cash right away to solve some issue that has come up in their lives.

Because annuities and structured payments are a legally-binding financial agreement, those items can be transferred to another person under the terms of the laws that have been set up to manage these financial products.

But, when faced with a serious financial crunch, some people hastily sell their annuities and structured settlements to the first company who would be willing to buy them for a lump sum amount

These companies who are willing to buy-out annuities and structured payments are commonly referred to as

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About the Author:

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Clayton Frantz writes for Quote Me A Price (QMAP). Simply put,
QMAP provides a better way to sell structured settlements.
They have Top-Rated factoring companies, who provide Annuity
and Structured Settlement Buyouts, competing for your business.
If you are shopping for a buyout, you can Register For FREE at
http://www.QuoteMeAPrice.com and list details of your settlement.
QMAP's system will ensure that you get the best possible price
for your buyout, enabling you to pocket thousands of extra
dollars when the deal is done. http://www.QuoteMeAPrice.com