Structured settlement annuity plans may seem very attractive to many potential customers. Certainly, it helps a lot in dealing with your finances especially if you are currently equipped with unexpected heavy expanses that you current income level can’t meet. However, before signing any sort of agreements on such annuity plans make sure you have a complete knowledge and understanding of the entire process. First of all you need be aware of the different payment plans and clauses that are associated with the process. This is going to help you to make sure there is proper security available with your finances where in case of any damages or loss, your plans have enough safety clauses to make you stay out of trouble.
The Value of the annuity
The value of the structured settlement are calculated and set mainly at the court by the judges when a conclusion is being made based on how much damage have been caused to the person. Sometimes the value of the annuity may not be enough to meet the current expenses related to medical bills and so on. In the process, if you have the assistance of a good attorney, proper negotiations can be made so that you get the amount of annuity which is at least close to what you deserve. Since there are a lot of different variable factors that are considered to determine the value, if you are aware of the factors, you would be able to understand how much you can stay satisfied with the settlement deal.
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The Nature of Payments
There can be many payment plans available to you as options where you can choose from. Different payment periods would have different rates where the longer you wait, the more money you can get. However, even if there are yearly and quarterly payment options, the monthly installments can help in many ways even if the rate can go down. It all depends on the situation though where you may have to calculate how much you can expect to spend on a periodic basis from the amount you are receiving. A good analysis of your current financial needs would do the job for you. Moreover, take help from accountants or a banker to help you rationalize your financial plans even more.
Lump sum value
At a certain point of time, you may feel the need to sell your settlement in order to get a large sum of money right away. Although, during the time of the settlement, this may not go through your mind, but if you can give it proper importance, try to understand the after sale value of the structured settlement. In this process, whenever you want to sell of the annuity, you can expect a proper rate from the actual amount to be available for sell. Although, you may not be able to sell the settlement for the actual value, but knowing the lump sum value would help you to negotiate properly with any potential buyers.
