Structured Settlement

2010-04-13T17:12:00.001-07:00

Personal injury claims used to be settled merely by exchanging a sum of money for a release of the claim. In contrast, a Structured Settlement goes beyond an immediate cash payment and provides future payments "structured" over time to meet a person's ongoing financial needs. A structured settlement may provide payments for a certain period of time or extend throughout the lifetime of the injured person.

Why Structure a Settlement?

Security
A structured settlement removes the injured party from the burden and risk of investing and managing a large sum of money. It reduces the possibility of exhausting all the settlement funds while needs still exist.

Tax Exemption
All benefit payments received in a structured settlement of a workers' compensation or physical injury claim are exempt from federal income tax under current tax law.

Flexibility
Short term or lifetime plans can be designed because of the flexible nature of a structured settlement.

Income
Because an injury may affect future earning potential, a structured settlement has the added benefit of replacing a portion of these funds. If lifetime benefits are designed, a person eliminates the worry of outliving his or her income.

Stability
Our administrative experience and financial strength provides both stability and peace of mind for the injured person and their family.

How Does a Structured Settlement Work?
You have decided prior to the settlement of your claim that you will receive payments through a structured payout. You or your attorney negotiate with the person or company you are making a claim against (the defendant) to agree on what future payments will be. The defendant funds his/her payment obligation to you by buying an annuity with a payment stream that matches the agreement. The life insurance company that issues the annuity makes the payments directly to you when they are due.

Sometimes defendants transfer their payment obligations to a third party through an assignment agreement. The third party (the assignee) has the sole obligation to pay you, and will buy and own the annuity. This assignment is an advantage to you because the assignees have extensive experience in handling the administration of structured settlements. The assignee can be more responsive to your questions and servicing needs.

Before entering into a structured settlement, make sure the life insurance company issuing the annuity is financially sound and will be there to make future payments. Most people have neither the time nor the resources to thoroughly research the financial condition of the company. There are, however, several rating companies who specialize in this analysis. Their evaluations are a good source of information regarding the strength and dependability of life insurance companies.

SFG and Structured Settlements
SFG was one of the early entrants into the structured settlement market and remains committed to our clients. Recognized as a leader in the structured settlement administration, the quality of our service has become a standard in the industry.

With our strong financial position, experienced management and balanced investments, SFG is a solid choice for funding your structured settlement.

2010-04-13T17:09:00.001-07:00

Did you know that you can sell structured settlement payments for cash now? Structured settlements are common in today's legal world. But, times change and so do your financial needs. If you could sell structured settlement payments for cash now, could you:

- take the vacation you always dreamed of?
- help a family member or friend in need?
- buy the house you always wanted?
- send your child to college?
- pay off more debts?

Sovereign Funding Group is happy to inform you that we have the ability to help you achieve your immediate and future economic goals by helping you to sell structured settlement payments. We will help analyze your situation and your financial goals, and come up with a plan to sell structured settlement payments that best suits your needs! All initial evaluations are free of charge and with out obligation.

Perhaps you want to sell all of your next 24 payments, or one half of next years payments, or half of each months payment for the next 5 years- we can help you to sell structured settlement payments in whatever fashion that achieves your financial goals. You can sell structured settlement payments as a viable option to put cash into your hands NOW!

If you won the lottery, would you take a lump sum payment or would you take yearly payments? Most people would take a lump sum, wouldn't you? Well than why would you take a monthly or yearly payment on your settlement, except if you didn't know that you could sell structured settlement payments for lump sum cash! Let a structured settlement buyout put the cash that you need into your hands today.

Let Sovereign Funding Group help you to sell structured settlement payments and unlock the financial potential that your settlement is keeping from you.

Please use the contact information below to receive a free, no obligation initial evaluation. You have nothing to lose except the opportunity to put your structured payment to work for you now.

2010-04-13T17:01:00.000-07:00

Why should I work with J.G. Wentworth?

Experience: 15+ years experience purchasing more than $2 billion of future payments from over 50,000 customers.
Efficiency: Our state of the art technology, sales and marketing techniques, underwriting and financial markets skills combine to deliver our customers more cash and faster transaction times.
Excellence: We hire the best people to work at J.G. Wentworth, bar none. Our people strive for excellence in everything they do.
Commitment: We are committed to providing the best service experience. We work closely with customers to understand their needs and customize unique solutions that solve unique problems.

Do I have to sell my entire structured settlement?

No, frequently partial buyouts are the best option for J.G. Wentworth customers. We help clients carefully evaluate their needs to determine how much of their structured settlement they should sell, to build a transaction that provides the most flexibility.

How long will it take to convert my structured settlement into a lump sum?

Transactions are typically funded within four to six weeks from the time we receive a completed contract from a client. Each client's circumstances are unique so completion times may vary. We understand how important your money is to you, and we work very hard to expedite every transaction.

Why would I want to sell my structured settlement?

Structured settlements are established for many different reasons, attempting to take into account the potential future needs of the plaintiff and provide a reliable source of income. Unfortunately, this set up can quickly become a burden due to a lack of flexibility and inability to adapt to life's events. Selling part or all of your structured settlement can provide the financial flexibility to expand the financial options for you and your family.

Can you e-mail me a quote?

Every transaction J.G. Wentworth completes is unique because each client has a different set of circumstances. Our underwriters customize each transaction to suit the client's specific needs. We can certainly e-mail any of our documents, including a quote, after receiving proper paperwork and speaking with the client on the telephone. Once this is complete we are able to offer a quote in just a few minutes. Call 866-FUND-102 (866-386-3102) now to get the process started.

How do I get started?

J.G. Wentworth has completed over 50,000 transactions and guides every client through the process. The first step is to call J.G. Wentworth or fill out the form on the left. Call 866-FUND-102 (866-386-3102) now to speak with a representative.

How long does it take to get a quote?

With the proper paperwork we can provide you a quote in just a few minutes.

What type of experience does J.G. Wentworth have?

J.G. Wentworth was founded in 1992 on the principle that people with deferred payments, who previously had no way to raise money from their guaranteed future payments, should be able to use these assets to raise cash today. J.G. Wentworth is a pioneer in the advanced funding industry and has continued to grow its leadership. J.G. Wentworth is one of the only companies in the advanced funding industry to achieve AAA, or equivalent, ratings on its securitizations, by both Moody's and S&P financial ratings services.

I found a better offer, can J.G. Wentworth beat it?

J.G. Wentworth has achieved its market leading status due to our experience, efficient processes and access to financial markets. Because of these factors, we are able to provide more cash to customers, on every structured settlement transaction.

Can I get a loan for my structured settlement from J.G. Wentworth?

J.G. Wentworth does not offer a loan for your structured settlement payments. Instead, J.G. Wentworth purchases the right to all or a portion of your future structured settlement payments in exchange for a lump sum of cash.

Still have a question? Call 1-866-386-3102 to speak with one of our experienced representatives.

2010-04-13T16:58:00.000-07:00

It was a cloudy afternoon and Mary, her husband and three daughters were visiting Mary's sister and brother-in-law at their San Antonio, TX home. They had a pecan tree in their front, heavy with nuts. The families thought it would be a fun activity to harvest the pecans, and perhaps use them to make a pecan pie, a favorite among the children.

Unfortunately, it had rained the night before. The grass was wet and power lines were sagging. In fact, they were sagging so low that one line was touching a branch. The little pecan tree was coursing with high voltage electricity. Mary's husband was electrocuted in an instant. He tried to speak to his family as he lay on the ground at the base of the tree, but could not gather enough strength to utter his final words or say goodbye to Mary. He died on the wet grass before the ambulance even arrived.

Mary sued the city of San Antonio and won her case. The city would pay her $1,300 a month for life.

The payments were helpful. But raising three children, especially three children alone was more expensive than Mary had ever imagined. Car expenses, utility bills, medical bills and school tuition bills were straining Mary's fragile finances. Before she knew what had happened, Mary was deep in debt with little prospect of getting out.

Luckily, one day while watching TV, Mary saw a J.G. Wentworth commercial. She learned that some or all of her regular payments could be sold for a lump sum of cash. That sounded just like the kind of service she needed.

Mary quickly picked up the phone to call and see if she could find the solution that would help her family. Thankfully, Mary was able to get the help that she and her family needed. She has completed two transactions with J.G. Wentworth and is looking into a third. "Thanks to J.G. Wentworth, my daughters and I are able to enjoy life to the fullest. It's not like when my husband was alive, but it's much, much better now," says Mary."

2010-04-13T16:53:00.000-07:00

When Matt, age 16, walked into his high school wood shop class seven years ago, his only goal was to finish his project. Working on the table saw, cutting soft pieces of wood to create shelves, was a potentially dangerous task, but Matt had done this often.

Unfortunately, this time was different. As Matt carefully slid the wood through the table saw, the blade began to jerk around. Before Matt could pull his hand away, three fingers were sawed right off. He went into shock almost immediately.

With no time to wait for an ambulance, the school nurse and security officer sped him to the hospital, where surgeons were on standby to sew Matt's severed fingers back on. It took two more reconstructive surgeries and five months of rehabilitation for Matt's fingers to heal.

Rather than protracted legal action, the school superintendent and Matt's parents agreed to a structured settlement for all of the pain and suffering Matt had endured. Once he became eligible, Matt would receive monthly payments, and later a large lump sum when he turned 28.

The monthly payments were helpful to Matt after he graduated from high school and started working. But when he decided that he wanted to go to college full time, it was a different story. The monthly payments would not quite support him, yet he didn't want to wait until he was 28 to get the money he needed to enter college full time.

Matt needed a financial solution that would help him accomplish his current goals, not the ones worked out when he was a 16.

Then Matt saw a TV commercial about J.G. Wentworth, in which he learned he could sell some of his future payments for a lump sum of cash today. This could give him the financial flexibility he needed to achieve his goal of going to college full time. Matt spoke with a representative and ultimately sold his future payment. With the cash, Matt was able to enroll in college and buy a car so he could go back and forth to classes each day. "Without J.G. Wentworth, I wouldn't have had the opportunity to further my education the way that I had always hoped to do!" exclaimed Matt.

2010-04-13T16:50:00.001-07:00

Have you brought a lawsuit against a company or an individual that you claim caused you permanent harm as a result of their negligence or intentional misconduct? (that’s just a fancy “lawyer” way of saying that you’re hurt and you say it’s their fault). Did you win or settle your lawsuit? If so, then you need to understand the basics about structured settlements, as it may be an important option to consider.

Ordinarily, when you win a judgment or settle your lawsuit the defendant has to pay you the judgment or settlement amount in a lump sum. Let’s say, for example, you have a form of cancer caused by asbestos called asbestosis. You sue the asbestos manufacturer, who agrees to settle out of court for a million dollars (don’t get excited or disappointed; this is just an imaginary amount for example purposes). You get a check for a million dollars, right?

That’s one option, but a structured settlement might make more sense depending on your circumstances. A structured settlement pays you in installments over time instead of a single lump sum.

Installment payments can be structured in a number of ways to suit your needs and to protect you from inflation. They can range from a simple yearly payment to complex arrangements consisting of an initial lump sum payment, monthly indexed installments, deferred payments, and special provisions relating to the future care or death of the insured.

Typically, the defendant would purchase an annuity (from an annuity or insurance company) for a dollar amount that is paid up front. The annuity provides regularly scheduled income payments as specified by you and your attorney under the terms of the structured settlement.

What are the advantages of a structured settlement? Well, for one thing, you are guaranteed a source in income for life. A second important advantage is tax management: you may be able to substantially reduce the taxes you would have to pay Uncle Sam on any investment income that would otherwise accrue from investment of a lump sum settlement.

Apart from the tax savings, it’s also important to "know thy self" when making a decision about structured settlements. Are you the kind of person who would head to Vegas, do a little world travel, buy lots of toys, and basically blow your money until you have nothing left of your million dollars in a year or two? If so, a structured settlement might be the way to go.

There are some negatives, however, that you need to be aware of. First, once you agree to it, you are stuck with the terms of the structured settlement. You cannot change it at some later date. Hence, it’s very important to be represented by a good attorney and tax advisor who will help negotiate structured settlement terms that meet your needs, such as protection from rising inflation. If you don’t expect to live very long, on the other hand, you may want a settlement that guarantees a minimum payment even if you die before the guarantee period expires. This can protect your family or beneficiaries from being left without financial resources.

Contrary to the suspicions of some uniformed plaintiffs, structured settlements are not intended to and do not (assuming you are represented by a decent lawyer) re-assess or change your award. They are simply a device to allow for payment of your judgment or settlement over time, or on an installment basis. They are flexible and can be structured to meet many needs and life circumstances.

People who receive structured settlement payments however may decide at some point during the life of the settlement that they need more money in the short term rather than periodic payments over time. In this case, some people opt for a structured settlement factoring transaction. With this type of transaction the structured settlement recipient can sell (or encumber) all or part of their future periodic payments for a present lump sum.

While a structured settlement is not appropriate for everyone, they can be very useful, depending on your needs. Your attorney can help you evaluate whether they are suitable for you. Some additional links with more information about structured settlements are included at the bottom of this page.

This article is intended to provide general information only, not legal advice. Please consult an attorney for advice in connection with structured settlements or any of the issues addressed in this article.

2010-04-13T16:46:00.000-07:00

Any person entering into a structured settlement should be on guard for potential exploitation in relation to the settlement:

Excessive Commissions - Annuities can be highly profitable for insurance companies, and they often carry very large commissions. It is important to ensure that the commissions charged in setting up a structured settlement don't consume an inappropriate percentage of its principal.

Overstated Value - Sometimes, after negotiating a particular settlement figure, the defense will overstate the value of a structured settlement. As a result the plaintiff, in accepting the settlement, in fact obtains a significantly lower dollar value than was agreed upon. Some defendants have nominally paid the full amount of the settlement, knowing that they would later obtain significant rebates from the annuity companies they used. Plaintiffs should consider compariing the fees and commissions charged for similar settlement packages by a variety of insurance companies, to make sure that they are in fact getting full value. A plaintiff may wish to make it a condition of the settlement that the defendant will actually pay the full value of the settlement in setting up the structured settlement, and that any rebates received by the defendant for annuities included in the settlement be payable to the plaintiff.

Self-Dealing - There have been cases where the plaintiff's lawyer is also in the insurance business, and sets up a structured settlement on behalf of a client without disclosing that the attorney is purchasing the annuities from his own business, or is pocketing a large commission on the annuities. Similarly, there have been situations where the plaintiff's attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing that the financial planner will be paying the attorney a referral fee in relation to the client's account. Make sure that you know what financial interest, if any, your lawyer has in relation to any financial services sold or recommended by the lawyer.

Life Expectancy - It is unfortunate, but many people who receive large personal injury or workers' compensation settlements will have a shortened life expectancy as a result of their injuries. It is important to consider life expectancy in association with any structured settlement, and to consider whether it is appropriate to enter into an annuity where payments will cease upon death. Sometimes it will make sense to insist upon an annuity that pays a minimum number of payments, or one that will pay a balance into the plaintiff's estate, such that the value of the settlement is not lost to an insurance company upon the plaintiff's untimely death.

Using Multiple Insurance Companies - For larger settlements, it often makes sense to purchase annuities for a structured settlement from several different companies, dividing the settlement between those companies. This can provide you with protection in the event that a company that issued annuities for your settlement package goes into bankruptcy - even in the event that one of the companies defaults in part or in full on your settlement payments, you would still receive full payment from the other companies.

2010-04-13T16:44:00.000-07:00

If you have a structured settlement, you may have been approached by a company interested in purchasing your settlement, or may be curious about selling your settlement in return for a lump sum buyout. About two thirds of states have enacted laws which restict the sale of structured settlements, and tax-free structured settlements are also subject to federal restrictions on their sale to a third party. Also, some insurance companies will not assign or transfer annuities to third parties, to discourage the sale of structured settlements. As a consequence, depending upon where you live and the terms of your annuities, it may not be possible for you to sell your settlement.

Keep in mind that companies which buy structured settlements intend to profit from their purchase, and sometimes their offers may seem quite low. You may benefit from approaching more than one company in relation to the sale of your settlement, to make sure that you obtain the highest payoff. You also want to be sure that the company which wants to buy your settlement is established, well-funded, and reputable - you don't want a fly-by-night outfit to obtain the rights to your annuities but to disappear or go bankrupt before paying you the buyout money. You may have to go to court to get a judge to approve the buyout. It is usually a good idea to consult with a lawyer before entering into an agreement to sell your settlement.

2010-04-13T16:43:00.000-07:00

Some people who enter into structured settlements feel trapped by the periodic payments. They may wish to purchase a new home, or other expensive item, yet be unable to muster the resources because they can't borrow against future payments under their settlement.

Some people will do better by accepting a lump sum settlement, and investing it themselves. Many standard investments will give a greater long-term return than the annuities used in structured settlements.

2010-04-13T16:42:00.000-07:00

One significant advantage of a structured settlement is tax avoidance. With appropriate set-up, a structured settlement may significantly reduce the plaintiff's tax obligations as a result of the settlement, and may in some cases be tax-free.

A structured settlement can protect a plaintiff from having settlement funds dissipated, when they are necessary to pay for future care or needs. Sometimes a structured settlement can help protect a plaintiff from himself - some people simply aren't good with money, or can't say no to relatives who want to "share the wealth", and even a large settlement can be rapidly exhausted. Minors may benefit from a structured settlement as well, such as a settlement which provides for certain costs during their youth, an additional disbursement to pay for college or other educational expenses, and then one or more disbursements in adulthood. An injured person who has long-term special needs may benefit from having periodic lump sums with which to purchase medical equipment or modified vehicles.

In some situations, it will be better for a severely disabled plaintiff to set up a special needs trust, rather than entering into a lump sum or structured settlement. Any plaintiff who is receiving, or expects to receive, Medicaid or other public assistance, or the guardian or conservator entering into a settlement on behalf of a disabled ward, should consult with a disabilities financial planner about their situation before choosing any particular settlement option or structure.

2010-04-13T16:38:00.000-07:00

Sometimes when a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner consulted in association with the settlement, will propose paying the settlement in installments over time rather than in a single lump sum. When a settlement is paid in this manner it is called a "structured settlement". Often the structured settlement will be created through the purchase of one or more annuities, which guarantee the future payments.

A structured settlement can provide for payment in pretty much any schedule the parties choose. For example, the settlement may be paid in annual installments over a number of years, or it may be paid in periodic lump sums every few years.

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2010-03-24T08:46:00.000-07:00

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