Why Hire a Structured Settlement Broker?
What is structured settlement?
In certain cases where there is an involvement of a large amount of money, sometimes payments can be extended over a time period rather than paying a lump sum amount. Settlements which make use of these extended systems of payment are termed as structured settlements. The schedule of such settlements can be complex. A structured annuity settlement is such an insurance product which can only be sold by licensed brokers. The Civil Department appoints only a structured settlement broker who has a valid license.
Why appoint a broker?
It has been seen that the main intension of any company in buying these structured settlements is making money. So they generally insist you to sell your settlement at the lowest possible price. This is where you need the help of a broker, who can help you find a firm where you will get the best deal of selling your structured settlement. Therefore if you are hiring a broker you can be sure that the process is going to be very smooth.
What does a broker do?
A structured settlement broker is a trained professional who is an expert in negotiating any deal of structured settlement. He or she takes the responsibility of setting up the schedule of payout of the settlement. Usually payments are made on a monthly basis but in some cases where the broker feels the necessity, if he or she insists then the frequency of payment can be increased. These annuity brokers can also make necessary arrangements on behalf of the claimant against the structured settlements. He or she is also liable to determine the ongoing medical costs like expenses of a nursing home, medications, physical therapy etc. that the claimant might be burdened with later on. In the US, there are not many structured settlement brokers who are registered with the government.
How are these brokers paid?
Practically a structured settlement broker is not supposed to charge for his or her service, but the truth is they don’t work for free. The main reason as to why these brokers should not charge for their service is, because they receive a commission from the structured settlement firms. The amount of this commission is around 4% of the premium that is paid by the claimant to the annuity companies. This commission is paid in advance to the brokers.
So if you are planning to sell off your structured annuity settlement, then always go for a structured settlement broker to get the best deal.
In certain cases where there is an involvement of a large amount of money, sometimes payments can be extended over a time period rather than paying a lump sum amount. Settlements which make use of these extended systems of payment are termed as structured settlements. The schedule of such settlements can be complex. A structured annuity settlement is such an insurance product which can only be sold by licensed brokers. The Civil Department appoints only a structured settlement broker who has a valid license.
Why appoint a broker?
It has been seen that the main intension of any company in buying these structured settlements is making money. So they generally insist you to sell your settlement at the lowest possible price. This is where you need the help of a broker, who can help you find a firm where you will get the best deal of selling your structured settlement. Therefore if you are hiring a broker you can be sure that the process is going to be very smooth.
What does a broker do?
A structured settlement broker is a trained professional who is an expert in negotiating any deal of structured settlement. He or she takes the responsibility of setting up the schedule of payout of the settlement. Usually payments are made on a monthly basis but in some cases where the broker feels the necessity, if he or she insists then the frequency of payment can be increased. These annuity brokers can also make necessary arrangements on behalf of the claimant against the structured settlements. He or she is also liable to determine the ongoing medical costs like expenses of a nursing home, medications, physical therapy etc. that the claimant might be burdened with later on. In the US, there are not many structured settlement brokers who are registered with the government.
How are these brokers paid?
Practically a structured settlement broker is not supposed to charge for his or her service, but the truth is they don’t work for free. The main reason as to why these brokers should not charge for their service is, because they receive a commission from the structured settlement firms. The amount of this commission is around 4% of the premium that is paid by the claimant to the annuity companies. This commission is paid in advance to the brokers.
So if you are planning to sell off your structured annuity settlement, then always go for a structured settlement broker to get the best deal.