Applications To Sell Structured Settlements On The Increase
The protracted economic downturn is seen as the primary factor driving the surge in demand to sell annuity payments from lawsuit settlements.
February 18, 2011 - Fredericksburg, VA - (http://www.smart-business-financing.com) A spike in requests to sell structured settlements in 2009 and last year suggests that economic hardship is leading many of the hundreds of thousands of Americans who have been forced to accept periodic annuity settlement payments stemming from a lawsuit to search for options that can provide immediate relief .
Companies that specialize in purchasing annuities from lawsuit settlements have been around for years, but the worst economic slump since the Great Depression has produced unprecedented demand for their services.
Mike Lieber, whose Fredericksburg, VA company, AEGIS Financial Solutions, has been helping people sell structured settlements since 1998, says the number of web searches and inquiries related to selling lawsuit settlements quadrupled in 2010 alone and has continued to increase so far in 2011.
"High unemployment and the sharp reduction in available consumer credit has sent more people than ever before in search of a way to convert their small monthly annuity into a large lump sum payment."
A structured settlement is essentially a financial agreement whereby compensation from an insurance settlement is paid through an annuity via regularly scheduled installments over a fixed period of time - often years - rather than being paid in a single lump sum payment at the time of settlement. A common practice in personal injury settlements and workers' compensation claims, structured settlements allow insurance companies to reduce the financial impact of damages by purchasing an annuity at a smaller initial cost than the nominal amount of the settlement. The insurance industry defends the practice by claiming that it protects the long-term financial interests of the injured by giving them a guaranteed, predictable income stream rather than a lump sum payout that might not be managed properly.
In fact, the insurance industry justification has been reinforced in the laws of most states -- and now in federal law - which require a court ordered approval for the transfer of structured settlement payment rights in exchange for a lump sum payment. The court approval process is designed to ensure that the transfer is in the annuitant's best interest.
While some might argue that this is yet another manifestation of the "nanny state," Lieber says that before there were controls put in place, there were too many instances of unethical behavior on the part of companies purchasing structured settlements from gullible annuitants, whose decisions were influenced by heavy-handed sales pitches with little regard to long-term consequences. Yet, with the safeguards in place, structured settlement conversions can and do serve a legitimate purpose, including providing cash to meet emergency needs, or to pay for educations, home or car purchases, or to pay off high interest debt.
"We always try to help our clients figure out exactly what is needed, why it is needed and if there are other alternatives available," he says. "If a conversion must be made, the client's needs might be met with a partial buyout versus a full cash buyout so the future of the settlement remains intact."
Because of the court approval process, it can take from 75-140 days - in some instances longer - to convert a structured settlement to cash. And although there is no guarantee that an annuitant's request will be approved, Lieber says those who choose a company that is experienced in the process of structured settlement transfers and one that is very thorough in preparing the court documents virtually assure a successful the fastest possible conversion.
About AEGIS Financial Solutions, Inc.: Since 1998, AEGIS Financial Solutions, Inc. has been helping people solve financial problems and get money when they need it most, using the vast resources of the non-bank cash flow industry.
Press Contact:
Mike Lieber, President
AEGIS Financial Solutions, Inc.
88 E. River Bend Road
Fredericksburg, VA 22407
mjl@aegisone.com
PH: (540) 548-2270
###
February 18, 2011 - Fredericksburg, VA - (http://www.smart-business-financing.com) A spike in requests to sell structured settlements in 2009 and last year suggests that economic hardship is leading many of the hundreds of thousands of Americans who have been forced to accept periodic annuity settlement payments stemming from a lawsuit to search for options that can provide immediate relief .
Companies that specialize in purchasing annuities from lawsuit settlements have been around for years, but the worst economic slump since the Great Depression has produced unprecedented demand for their services.
Mike Lieber, whose Fredericksburg, VA company, AEGIS Financial Solutions, has been helping people sell structured settlements since 1998, says the number of web searches and inquiries related to selling lawsuit settlements quadrupled in 2010 alone and has continued to increase so far in 2011.
"High unemployment and the sharp reduction in available consumer credit has sent more people than ever before in search of a way to convert their small monthly annuity into a large lump sum payment."
A structured settlement is essentially a financial agreement whereby compensation from an insurance settlement is paid through an annuity via regularly scheduled installments over a fixed period of time - often years - rather than being paid in a single lump sum payment at the time of settlement. A common practice in personal injury settlements and workers' compensation claims, structured settlements allow insurance companies to reduce the financial impact of damages by purchasing an annuity at a smaller initial cost than the nominal amount of the settlement. The insurance industry defends the practice by claiming that it protects the long-term financial interests of the injured by giving them a guaranteed, predictable income stream rather than a lump sum payout that might not be managed properly.
In fact, the insurance industry justification has been reinforced in the laws of most states -- and now in federal law - which require a court ordered approval for the transfer of structured settlement payment rights in exchange for a lump sum payment. The court approval process is designed to ensure that the transfer is in the annuitant's best interest.
While some might argue that this is yet another manifestation of the "nanny state," Lieber says that before there were controls put in place, there were too many instances of unethical behavior on the part of companies purchasing structured settlements from gullible annuitants, whose decisions were influenced by heavy-handed sales pitches with little regard to long-term consequences. Yet, with the safeguards in place, structured settlement conversions can and do serve a legitimate purpose, including providing cash to meet emergency needs, or to pay for educations, home or car purchases, or to pay off high interest debt.
"We always try to help our clients figure out exactly what is needed, why it is needed and if there are other alternatives available," he says. "If a conversion must be made, the client's needs might be met with a partial buyout versus a full cash buyout so the future of the settlement remains intact."
Because of the court approval process, it can take from 75-140 days - in some instances longer - to convert a structured settlement to cash. And although there is no guarantee that an annuitant's request will be approved, Lieber says those who choose a company that is experienced in the process of structured settlement transfers and one that is very thorough in preparing the court documents virtually assure a successful the fastest possible conversion.
About AEGIS Financial Solutions, Inc.: Since 1998, AEGIS Financial Solutions, Inc. has been helping people solve financial problems and get money when they need it most, using the vast resources of the non-bank cash flow industry.
Press Contact:
Mike Lieber, President
AEGIS Financial Solutions, Inc.
88 E. River Bend Road
Fredericksburg, VA 22407
mjl@aegisone.com
PH: (540) 548-2270
###
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