subject: Structured Settlement Loans - Do You Know The Consequences [print this page] In many cases, the paying party cannot pay the settlements and will turn to the insurance company, which creates an annuity policy. This policy can be transferred into cash money with the structured settlement loans, which fit better for the immediate needs.
Today more and more people prefer the structured settlement loans because they bring benefits for the losing party also, who can settle their bill faster and get an extended time to pay the money to the insurance company. The shorter handling time reduces also the stress.
1. The Structured Settlement Loans - What They Are?
The process works in that way, that a person who wants to sell the settlement submit the details to the company, which will prepare a quote and is a candidate buyer. The seller should ask quotes from at least ten companies and to make them to compete against each other. It is important to behave a little bit aggressively to give the best prices.
The seller can nowadays handle this process totally online and to get all the quotes via emails. This make the whole process quicker, which leaves time for the bargaining. The last effort can be done in person by phone if needed. The seller should not pay for the quotes.
Not all companies can give quotes concerning the structured settlements. The financial institutions are the only serious companies, which can handle these things. They can be banks, but most often they are specialized into these kind of loans only.
2. You Can Release The Money.
In some cases the settlements are better, but in some cases not. The structured settlement loans make the whole system more flexible and the recipient can decide by himself how to use the money or how to invest it into some other instrument. He sees the money today as a more valuable, than the money in the future.
3. Use The Expert Financial Consultant To Get The Correct Guidance.
When you ponder the structured settlement loans, you will very soon notice, that the whole topic is relatively complicated and the settlement loans are just one alternative. Maybe they were your first thoughts, when you started to think your financial needs and the tools, which you will need. The expert financial consultants are experts, who know also other options, than this one. I highly recommend, that you will talk with one of them.
Finally, a few words about the taxation. The settlements are not taxable, but the lump sum payments are. You as a borrower will be responsible for the tax liability of the loan. This is the fact, which will reduce the benefits of this alternative significantly.
by: Juhani Tontti
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