The following article is a brief description of the process of selling structured settlements. To know more, read on.
There are countless cases of personal injury, accidents and carelessness, that are concluded by courts everyday. The plaintiffs in such cases, are the parties who have suffered some kind of loss, even though they were not at fault. The defendants, on the other hand, are the ones responsible for the loss. Another party that is often involved in such a case is the insurance company of the defendant.
Legal systems of all nations have given their citizens rights to sue other parties for legitimate damages, that they have incurred when someone else is at fault. The damages might be injuries to health, loss of time, loss of revenue, damage to goodwill or reputation, etc.
The plaintiffs can theoretically sue the party or parties responsible for almost any legitimate and genuine loss. The loss and damages are compensated by defendants, by the payment of a compensation that is prescribed by the court. In some cases, the plaintiffs and the defendants also have an out-of-the court settlement. The compensation that is to be paid, is either paid by the defendant himself or by his insurance company. The payment can be made in two different ways, which are, a lump sum payment or a structured settlement.
A structured settlement means that the amount of compensation is spread into several different installments, and is paid to the plaintiff over a specific number of years. Most of the time, the defendants prefer to pay the compensation with the help of a structured settlement, as they can distribute the burden over a period of time, and one installment is comparatively a small amount.
Structured Insurance Settlement
A structured settlement that is provided by the insurance company of the defendant, is known as the structured insurance settlement. The best feature of this type of settlement is that there is a 100% assurance of the payment of installments. There is also a very rare occurrence of a default of an installment.
Due to this feature of a hundred percent payment assurance, structured insurance settlements can be easily sold at a very good price. The reason that many people are ready to buy this type of insurance settlement, is that it ensures a secured and timely inward cash flow.
Selling Structured Insurance Settlement?
The process of selling structured insurance settlements can be initiated with the help of a structured settlement broker. The broker basically helps you to find a client who wants to buy a structured settlement. The broker will also help you to derive a price for the settlement. The cost is usually derived by adding up all the installments, rate of interest, and small amount of profit.
It must be noted that when you sell insurance settlements, the margin of profit is pretty low. In fact, the profit margin is received due to the assurance of installments. It must be also noted that some structured insurance settlements do not have a profit margin. Many are sold at a lower amount than the actual cost of all the installments put together.
The best way to sell a structured insurance settlement is to approach a broker, who is a member of National Structured Settlement Trade Association or Society of Settlement Planners. The United States Department of Justice also can help you to get in touch with a broker. In case the amount of the settlement that you are planning upon selling is too high, then you might also need to hire an attorney to get the paperwork done.
I hope that you find the article resourceful, and it helps you find the best deal.