Frequently Asked Questions: The FAQs about Structured Settlements

Beneficiaries of structured settlements often have many questions about these complex financial arrangements.  Below are some Frequently Asked Questions:”

• What is a structured settlement?
• Who receives payments from structured settlements?
• Am I locked into my payment schedule?
• What are the advantages to structured settlements?
• What are the drawbacks?
• Is there any way to get my cash now?
• Do I have to sell all my future payments?
• Can I get some cash now and keep some money coming in later?
• What could I do with my lump sum cash payment?
• Is there any reason why I might want to hold on to guaranteed future payments?
• Do I need the permission of the insurance company to sell?
• I’ve decided that selling my structured settlement is the right call. Now what?
• How do I locate a reputable company to purchase my structured settlement?
• How do I know I’m getting the best price for my future payments?
• Can you walk me through the process?
• How long will it take to receive my money?
• Can I get my money any faster, rather than getting a court order?
• Are you a direct funder or a broker?
• What is your success rate?
  

What is a structured settlement?

Essentially, a structured settlement is an agreement where a defendant (or usually the defendant’s insurance company) agrees to pay an individual a certain amount of money on a certain schedule, as a way of settling a claim.  Ideally, structured settlements provide plaintiffs with long-term financial security, while allowing the insurance companies to pay out big awards over time.

Who receives payments from structured settlements?

Anyone who has settled or won a lawsuit where the damages and/or compensation was not awarded upfront in a lump sum.  Plaintiffs receiving structured settlements might have brought lawsuits for personal injury, class action, property damage, workplace harassment, workers’ compensation or other matters.

Am I locked into my payment schedule?

Yes. In a structured settlement you are locked into the terms of the payment schedule.  The plaintiff has a great deal of flexibility in setting up the initial terms of the award, but after that there are no changes possible to the agreement as it is worked out.  Essentially, your money comes to you on someone else’s timeline.

What are the advantages to structured settlements?

A guaranteed stream of income provides a certain measure of security for the future, and for plaintiffs who have suffered life-altering injuries a structured settlement can ensure that there will be ongoing funds to cover medical bills and living expenses.  Moreover, many people who come into a major award spend money wastefully, and few people have the investment acumen to know how to wisely invest a major award.  Also, the payments from a structured settlement are considered tax-free income and are not subject to any state or federal tax.

What are the drawbacks?

The inability to access the funds in a structured settlement ahead of schedule is a major drawback.  A structured settlement requires the plaintiff to permanently fix the terms of the award when the lawsuit is resolved, but a person’s financial picture can change in a heartbeat.  There are any (many) number of legitimate and pressing reasons why a person may have an unanticipated need for cash.  In so many cases, holding on to a structured settlement may not be the wisest course.

Is there any way to get my cash now?

Yes.  You can sell all or part of your future structured settlement payments for a lump sum cash payment now.  There are any number of companies that are willing to purchase structured settlement payments.  Woodbridge Investments, the sponsor of the Structured Settlement Source, is the market leader and a pioneer in this field, with over 15 years of experience, which enables them to guarantee the best price possible for your structured settlement.

Do I have to sell all my future payments?

No.  Many people sell only a part of their future payments in order to raise enough cash to meet their current needs, which lets them still enjoy guaranteed future income.

Can I get some cash now and keep some money coming in later?

Absolutely.  It is even possible to sell off more of your payments at a later date in a second transaction.  Reputable firms like Woodbridge Investments will work with you to determine how much money you require now and how much can be left set aside for later.

What could I do with my lump sum cash payment?

If you are struggling to get out from under credit card debt, if you are falling behind on ballooning payments on a predatory mortgage, if you have lost your job or suffered an injury that prevents you from working, if you need cash for a down payment on an investment property or vacation home, if you need to put a child or grandchild through college—these are just some of the reasons why you might wish to sell your structured settlement for a lump sum.  What you do with the money is entirely up to you.

Is there any reason why I might want to hold on to guaranteed future payments?

Maybe yes, maybe no.  That is a decision that only you can decide for yourself. By having the option to sell all or part of your structured settlement payments for a lump sum, you get to be the one to decide how much income, if any, you want to leave in place for the future.  This is a particularly important determination to make for someone who has received a structured settlement as part of a personal injury lawsuit or workers’ compensation claim.  These individuals are often forced to go into steep debt while waiting for the case to make its way through the courts.  With no longer any income from their employment, the deferred payment schedule will help ensure that there will be money coming in even if that person is unable to work.  However, these kinds of plans often do not release enough money initially to pay off the bills.  These individuals often sell a part of their future payments for a lump sum that will allow them to make a fresh start, while still leaving a guaranteed income in place for the future.

Do I need the permission of the insurance company to sell?

No.  Selling your structured settlement payments for a lump sum of cash is entirely your decision to make.

I’ve decided that selling my structured settlement is the right call.  Now what?

You need to speak with a trained professional who can walk you through your options and give you a quote for how large a lump sum your future payments may be worth.

How do I locate a reputable company to purchase my structured settlement?

This is a complex financial transaction—not just anyone can do it, and not every firm will be able to give you the best quote possible.  You need to partner with a firm that has the creativity, expertise and integrity to offer the most money possible for your future payments.  Woodbridge Investments, the sponsor of the Settlement Source, is the market leader with an unparalleled reputation for honesty and customer service.

How do I know I’m getting the best price for my future payments?

The only way to be sure is to get a number of quotes, and go with the firm that guarantees the highest lump sum.  Woodbridge Investments, for example, is so sure it can make you the best deal possible that it guarantees that it will beat any legitimate quote from its competitors, or it will pay you $500 cash.

Can you walk me through the process?

First, you enter into an agreement to sell your structured settlement payments to a funding company like Woodbridge Investments.  Then, the buyer of your structured settlement goes to court to obtain a court order on your behalf and at their expense, assigning your structured settlement payments to them upon their payment to you of the agreed upon sale price.  The court order is a mandatory step and protects both the funding company and yourself.  Finally, upon approval, the funding company pays you your lump sum and finalizes the transaction.

How long will it take to receive my money?

We work very hard to get you your money as fast as possible. If all documents are submitted to us on time, you will receive your money between 45 to 90 days, depending on the state in which you reside.

Can I get my money any faster, rather than getting a court order?

No. Each state has laws and regulations that provide us with specific guidelines on how to carry out each transaction.  In order to protect consumers from unethical investors, the court has to approve the assignment.  

Are you a direct funder or a broker?

Woodbridge Investments is a direct funder.  We work directly with the banks and insurance companies to fund your transaction. 

What is your success rate?

We have a very high success rate. We will not take your case to court if we believe that it will not get approved.

It’s fast and easy to find out what your annuity is worth.  Just contact Woodbridge Investments by filling out our fast free quote form or
Call 1-866-865-7044 Today!