personal injury

Selling Annuities? 3 Questions To Ask Yourself

If you chose to waive a personal injury claim or some other insurance pay-out, and now have an annuity in your name, then you may have become interested in the concept of selling it. Though various companies may make it sound easy, selling a settlement can often be a long and arduous process, with various complications along the way. If you’ve been trying to make heads or tails of your options regarding your annuity and just getting confused, here are three important questions to ask yourself in order to clear it up.

What Does the Agreement Actually Say?

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If you want to know more about your settlement, then the first thing you should do is dig out your agreement and look back through it, paying close attention to the bare bones of the payments. Are some of the payments significantly more than others? Have they been adjusted for inflation? You also need to pay attention to whether or not the payments are guaranteed, or if they’ll be transferred without any kind of penalty. What you learn from this process will have a big impact on the amount of your lump sum payment. You’re not going to get the most out of your settlement without understanding it thoroughly, so make sure that you start by going back over all the details of your agreement.

What Are You Aiming For?

When planning to sell a structured settlement, a lot of people will choose to sell all of their remaining payments. Other people, however, will only take what they need, and hold onto the remaining amount. So which of these options is for you? The only way to figure that out is by calculating the amount of money you’ll need to reach your goal, and whether or not you can get by comfortably after sacrificing your ongoing payments. Seen as you’re reading this, there’s a fair chance that life has thrown you some kind of financial curveball that you need to accommodate for in a hurry. While you obviously need to provide for your family, you should also be planning ahead, and making sure you’re covered for any other big, unexpected costs which could spring up further down the line. Selling annuities can work miracles, but it’s not always the best decision you can make.

What Are your Options?

When some people decide to sell annuities, their options are narrow, and a single obvious choice rises to the surface pretty early on. For the majority though, there’ll be a range of different ways they can choose to break up their payments. The choice you make here will all depend on your most pressing financial needs, any predictable factors in the near future, along with your job security and other factors going into your personal financial stability. After you’ve established a clear idea of your goals, and the factors which are going to broaden or limit your options, you’ll be in a much better position to choose a company who will help you with selling on your annuity.


Making A Claim: Payouts You Are Entitled To

We are much savvier when it comes to financial situations these days. We can all be well aware of the best ways to reduce debt or to even save monthly on our bills. One area we are becoming more clued up on is when we are entitled to some form of compensation. Companies, brands, and even the general public have a duty of care. This might be in daily life, on the road, and even when making purchases for big-ticket items like cars or holidays. So as we are beginning to become wise to when we are entitled to our money back or compensation, I thought it was worth noting down some of the most common ways you are entitled to a payout of some sort.

If you have a suffered a personal injury

Being in a car accident or developing a personal injury through work in most cases is not our fault. The most damage can be caused when you least expect it, for example, a car driving into the back of your car, or tripping over obstacles in a work environment. These situations can often lead you to take time off work, causing you financial pain as well as the physical implications. So sometimes in these circumstances, people are entitled to make a claim. This is when speaking to a personal injury attorney could prove beneficial and informative to you.

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Have you ever been mis-sold insurance or financial products?

Buying big ticket items like houses or cars often can often mean that our finances can go under scrutiny. This is because in some circumstances some form of financial aid is needed like a personal loan or a mortgage. But there are products that people have a duty of care to inform you about where you can decide if they are relevant to your circumstances. In many cases of the past, people have been sold these products in error due to incorrect information being passed on. This is where you could be entitled to a payout for being mis-sold. This also will be relevant to any other financials things you have such as bank account and credit cards.

Did you fall ill due to food poisoning on a recent all-inclusive getaway?

Most recently, people are now entitled to consider a refund or some form of compensation if they fall ill on holiday to an all-inclusive resort. As part of an all-inclusive package, the food is part and parcel of the overall experience. So food poisoning as a result of this food means that hotel hasn’t provided what it sold.

Was your flight delayed?

The same principle could be applied to your flights. Nowadays if your flight is delayed by more than a few hours you could be entitled to some form of compensation. This is when it’s worth checking the terms and conditions.

Those pesky bank account charges

Finally, in years gone by banks were able to charge what they wanted if we went over an agreed overdraft facility or had no funds in our accounts. But those days are long gone, and you may find that you could have been well over charged. If you are unsure about whether you are paying too much, it’s worth complaining to your bank and allowing them to look into the situation.

I hope this has made you more aware of some of the ways you could be entitled to compensation or refunds.


A look at the different types of settlement options

Everybody loves to spend money. You cannot have an unlimited supply of green paper and if you have the need to pay someone a large amount of money, you would prefer to pay it bit by bit, instead of one go. This is where structured settlements come into picture, helping you pay someone else’s personal injury claim.

financewand.comA structured settlement can be defined as a financial agreement that makes one party pay to the other a set amount over a period of time. This is usually done to resolve personal injury claims. Structured payments are necessary if you decide to generate a monthly income for yourself instead of trying to handle the whole amount at one time. Now, you can get isettlement cash easily. Depending on the mutual agreement of the parties paying and receiving the money, they can choose one of the following payment options:

  • Joint and survivor annuities: When there is a person who is dependent on the payee both of them can set up a payment option in the same agreement. This way the dependent is protected even if the primary payee were to die. The payment will continue at the rate as to whatever was agreed upon in the contract.
  • Deferred defined benefit annuity: This option works for payees who have sufficient funds to work with at the current time. They can delay their payment date to a later day with increased benefit.
  • Period Certain Annuity: This type of annuity has a stipulated time frame in which the amount ought to be paid. For example it can be used to handle the college fees, handle legal charges or establish a retirement fund. After paying for the fixed time the remaining amount still owed can be obtained as a lump sum payment.
  • Treasury Funded Structured Settlements: In order to protect the payee this payment structure uses both TIPS and STRIPS to adjust the principal amount with the rise and fall in the inflation rates.
  • Variable income payout structures: The payee can choose to not lose out on the market equities by investing his settlement money. This income is also tax protected like the fixed settlement amount. But the payee will need to risk the variations in the income as it is dependent on the chosen portfolio.

All the above options are viable but their efficiency varies from case to case.

Sometimes the payee can choose to demand lump sum payments depending on their situation. Payees can also enhance their income by buying a part of settlement options from the second hand market at good rates, to cash in when the need arises. Though most of the time long term settlement options are the way to go, in case of an emergency the need for hard cash arises, then the settlement options can also be sold to prospective buyers for a little less money than the total amount that would be finally earned. It is best to decide on the settlement option after having a talk with your financial advisor.


Why Should I Hire A Personal Injury Lawyer?

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If you’ve been the victim of an incident that left you injured through no fault of your own, there are several reasons you may want to seriously consider hiring a personal injury lawyer to assist you in filing a claim. Seeking compensation for the damages caused can be an overwhelming and complex process for someone who isn’t experienced in legal matters. Though you aren’t obligated to retain the services of an attorney, it can make a big difference in the costs you recoup and level of stress you have to deal with.

Familiarity With Personal Injury Laws

Chances are, your understanding of personal injury laws and your rights are limited, and trying to wade through all the legal jargon to comprehend enough to get through the claims process probably won’t do your case much good. A personal injury lawyer will be familiar with laws as they apply to your particular circumstance and the state you reside in. This will put you at an advantage for knowing whether or not a claim should be pursued, and if so, how much you may be entitled to.

Skilled to Negotiate Higher Reward Payout

Insurance companies do their best to pay injured parties the least possible amount they can. Oftentimes, they look to settle quickly and offer settlements that are far lower than what would be considered fair. Since a personal injury lawyer knows how to place value on a claim, they are well-equipped to dig their heels in and skillfully negotiate until they’ve reached a reasonable agreement, and can usually accomplish the goal in a much shorter timeframe than if you were to go back and forth on your own.

Experience in Court

In the event that you aren’t able to come to terms on a settlement, it may be time to turn your claim into a lawsuit. The guidance of an attorney in court proceedings is invaluable. Your lawyer will file all of the necessary paperwork for you, making sure to do it within the allotted time you have to make a claim, and then put together a strong case showing why compensation should be awarded in your favor. Inexperience in court can cause your case major harm, especially if you’re going up against a corporation with professional representation.

Minimize the Burden

In the aftermath of an accident there are many things you will be going through mentally and physically (trying to recover from injuries, time off of work, loss of recreational activities, etc.), and adding the stress of a personal injury case on top of everything else is more than one person should have to handle. Hiring a personal injury lawyer will take the weight of most of that burden off your shoulders and allow you to focus on getting well again.

Most who have found themselves in this kind of situation before would agree that it’s in your best interest to hire a personal injury lawyer when pursuing restitution. The benefits are sure to outweigh the costs as long as you select a trustworthy and esteemed attorney.

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By Tiffany Olson

Tiffany Olson has first hand experience with personal injury woes. Her stepmom slipped and fell at a grocery store several years ago and the whole family has learned a lot throughout the claim process.


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