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| Structured Settlement Annuity Company/narasiinspirasi.com |
Structured Settlement
After winning a personal injury lawsuit, you may have a couple of choices for how to accept your money. You may opt for a series of payments over time—a.k.a. a structured settlement. If you’re looking for a lump sum, you may work with a structured settlement company. These companies offer a smaller lump sum in exchange for your structured settlement payments.
Structured Settlements a Good Idea
It depends. A structured settlement may offer more money over time. It may also be a good idea if you don't have experience managing money. Your payments are tax-free—and there is less of a risk of losing the money through a bad investment. But if you need access to more money sooner, the lump sum option may be better. The biggest downside of a lump sum is you will receive less money overall. While selling your settlement for a lump sum is often tax free, it can be taxed in some situations too.
Difference Between a Structured Settlement and an Annuity
Structured settlements and annuities have a few things in common. Both involve fixed income periodic payments and may prevent you from spending a lump sum of money. There's a key difference, though. You can buy an annuity as an investment from an insurance company. A structured settlement offers the same payment structure, but it’s a payment option you can choose after winning money from a lawsuit.
Cost of a Structured Settlement
Structured settlement companies make money by taking a percentage of your settlement. As you read during this article, the companies are not too forthcoming about sharing how much exactly it will be. The CFPB recommends getting the company's fees, extra costs, and interest in writing before signing a structured settlement deal.
Selling structured settlement payments
Yes. You must follow several steps, including a court approval process, to receive your structured settlement payout. After obtaining the judge’s approval, you can sell all or a portion of your structured settlement payments.
Choosing the Structured Settlement Companies
Dealing with a lawsuit can be stressful—even after you have won. If you are looking to cash in your structured settlement for a lump sum, there are many factors to consider. To create our list, we looked at company history and accreditation. We also compared website transparency, the settlement process, customer service, and other standout features.
Top 5 best structured settlement companies according Kate Dore on Investopedia
1. Peachtree Financial Solutions
Peachtree Financial Services earned our top spot for several reasons. The company has a long history and solid reputation. It is now owned by J.G. Wentworth another big player in this industry. The reason it inched ahead of its parent company is the faster timeline for payouts—including the company’s cash advance options.
Pros
- The process is outlined on the website
- It's easy to reach customer service
- Cash advance option
- The process is outlined on the website
- It's easy to reach customer service
- Cash advance option
Cons
- Lack of pricing transparency
- Must call a representative for key details
2. Fairfield Funding
Structured settlement companies tend to not provide easy-to-access pricing details online. Fairfield Funding offers a guarantee to beat competitor pricing with a $500 offer if they can’t. So you don't have to worry pricing transparency and can rest assured you are getting the best price. This makes the company our review's best for pricing.
Pros
- Low pricing guarantee
- Fast transaction process
- It's easy to reach customer service
- Low pricing guarantee
- Fast transaction process
- It's easy to reach customer service
Cons
- Less established than competitors
- Must call a representative for key details
- Must call a representative for key details
3. DRB Capital
DRB Capital was an easy pick for our customer support slot. It’s the only company that promises a dedicated representative throughout the process. DRB Capital also offers both English and Spanish support.
Pros
- Dedicated representative
- English and Spanish support
- Stop Structured Fraud program
Cons
- Dedicated representative
- English and Spanish support
- Stop Structured Fraud program
Cons
- Lack of pricing transparency
- Must call a representative for key details
- More established competitors
- Must call a representative for key details
- More established competitors
4. Stone Street Capital
When you’re dealing with a structured settlement, it’s important to work with a company you can trust. Stone Street Capital made the cut because it’s the oldest company on our list, with strong consumer reviews.
When you’re dealing with a structured settlement, it’s important to work with a company you can trust. Stone Street Capital made the cut because it’s the oldest company on our list, with strong consumer reviews.
Pros
- Established company
- It's easy to reach customer service
Cons
- Lack of transparency on website
- Must call a representative for key details
5. USClaims
USClaims’ recent Consumer Litigation Funding Provider award, long history, and reputation make it an easy choice for pre-settlement funding best. A few companies on the list offer a cash advance but none within a 24-hour timeframe.
Pros
- Fast payments
- It's easy to reach customer service
- Fast payments
- It's easy to reach customer service
Cons
- Limited pricing details on website
- Not a member of National Association of Settlement Purchasers
- Limited pricing details on website
- Not a member of National Association of Settlement Purchasers
