Considerations When Setting Up A Structured Settlement

For years now, the structured settlement has proven beneficial to the people who engage in it. The person making the payments is able to give affordable amounts to the annuities whereas the annuities are able to receive fixed/ constant amount of payment. What’s more is that this method of payment is not affected by creditors claims neither does the divorce process able to take it. It is hence a win/ wins process for the two parties. However, one has to be open and stay guard to some potential exploitation.

The first consideration that has to be made is the commissions given. Most of the insurance companies rip a fortune from the structured settlement. It is therefore highly advised to consider the amount of commission charged in this set up. Inappropriate percentage in the principal can lead one into frustrations and dissatisfaction. It is advised to get the lowest commission for the better of the future.

Secondly, consider the overstated values. In most cases, after the negotiation process is complete, an overstated value might be claimed. This means that one will have to pay or receive less than is supposed to be. This is a major channel of exploitation to many people taking this agreement. It is hence advised to understand all the terms and by what means the amount came to rest at that.

Life expectancy has also to be considered. In matters of injuries, ones life might be shortened. When this happens, it is advised to take care when choosing the appropriate structured settlement agreement. Will it be an agreement, which will end upon death, or one that will continue after death? Care has to be taken when selecting this method, if one has children, this decision made should be appropriate.

There are many more aspects that have to be considered when setting up this settlement which include multiple insurance companies and self-dealing. It is advised to take time when setting up this agreement.

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