A Useful Guide to the Structured Settlement Loan Process
Almost anyone residing in the U.S is eligible to receive a structured settlement loan. Most individuals enter into a structured settlement to get compensation from a company or another person after a lawsuit. Compensation is provided in equal installments and over a fixed period. The installments are delivered through as collateral or in the form of a life insurance agreement. Applying for a structured settlement loan is very easy.
There are a few prerequisites that must be met before you apply. First, you need to have an understanding of the type of structured settlement loan you’re eligible for. One thing you must avoid is applying for a loan when there is a clause that says you are not permitted to take out loans or financial leverages to use the document as collateral. If there aren’t any restrictions, then you are eligible to apply for a loan. If the settlement has been reached, you still may need permission of court. Also, if the settlement took place out of court, then you may need permission from the defendants or the insurer. After you’ve done your due diligence, and you’re certain there are no restrictions, you can then begin the loan application process immediately.
After evaluating the paperwork, either the bank or financial institution will accept your application. In some cases, processing can take up to 4 months. Another option to consider is to sell your annuities. Selling your annuities, will make it possible for you to receive the money in 6 weeks or less. After your loan has been processed and granted approval, you will be responsible for paying fees. The fee and other charges will deduct income tax from the total loan amount. Annuity payments will allow you to pay back the loan, while you only spend what is needed.
Getting To The Point – Resources
It’s wise to compare the settlement sale with the disbursal of your loan. After you sell your annuities, you might be responsible for more fees and a deduction of taxes. This will terminate your settlement, and will make you ineligible to receive payments in the future. The way to avoid this from happening is to take the loan out as a structured settlement. You are still going to have to repay the loan.
Finding Similarities Between Settlements and Life
It’s common for most annuity buyers to only buy half of the settlements, yet the majority of the loans will cover the entire payment plan. With this option, you have a lot of flexibility, because you can spend your loan in a variety of ways. The safest way to proceed is to research the credentials of structured settlement loan lenders. If you choose to hire a lawyer, you will protect yourself from any hidden fees or conditions you may have overlooked.