How To Sell Structured Insurance Settlement For a Large Lump Sum of Money
Recipients of monthly payments may not be aware that they may sell structured insurance settlement payment rights to organizations that can, in return, provide a lump sum of cash to be used by the seller immediately. Although the promise of regular payments through a structured settlement may sound appealing at first, many recipients find that having access to cash, even if it amounts to less than the total annuity payment over time, is a better deal.
People who decide to sell structured insurance settlements do so to have money at their immediate disposal, rather than to have to wait for expected payments. The lump sum payout is basically a cash advance that can be spent as needed or saved or invested for future use. People who decide to sell structured insurance settlement payment agreements find that having access to cash at one time can pay off debt, cover unforeseen medical and education expenses, allow for large purchases, and even treat the family to a dream vacation.
Some people choose to use the additional cash to take advantage of investment opportunities that might yield more money over time than the settlement offered. Regardless of what they decide to do with the money they receive, people who sell structured insurance settlements regain control of the money awarded to them and are able to do with that money what they choose in the present, rather than having to wait years for the series of payments to arrive.
Those choosing to sell will want to do some research to be sure they get the most out of the transaction. Reputable buyers offer many options to sellers and can customize agreements to suit individual needs since no two arrangements are alike.
How Do I Start the Selling Process?
If you decide you want to sell structured insurance settlement payments to a buyer, you should first find out what types of programs are offered. Understand that when you sell a structured insurance settlement, you will receive less money than was awarded to you originally; however, that money will immediately be yours to do with as you please.
And don’t forget that due to the natural flow of inflation, structured set payments are actually worth less over time. This is why it makes sense to get a lump sum now. A reputable buyer will also suggest that you consult an attorney and have him or her look over the agreement you are planning to make with the buyer.
Whether you decide to continue receiving periodic payments or to join those who have decided to sell structured insurance settlements, remember that the money was awarded to you, and you have options of when to receive your money and what you can do to make it work best for you.
Jamie has been working in the finance industry for many years and is a contributing editor to www.selling-your-note.com. Learn how to sell structured insurance settlements and get a free quote from a top note buyer on our site.
james lowery said,
April 17, 2007 @ 3:58 pm
A few years ago, it seemed that nearly every company was going public with an IPO to gain capital investment, but now, with this route effectively blocked to smaller companies, entrepreneurs, angel investors and employees are increasingly looking at the opportunity of a reverse merger with a trading shell on the OTC Bulletin Board, the Pink Sheets or Form 10.
Through the reverse merger, your private company merges into a publicly listed company called a “shell” and gains control. This gives you listed stock that can be leveraged to raise capital.
This whole process might seem shady, but it is not, indeed many well-known companies have gone public through a reverse merger process including Warren Buffett’s Berkshire Hathaway (berkshirehathaway.com/), Turner Broadcasting System, Occidental Petroleum, Blockbuster Entertainment and even American Idol (www.americanidol.com)
Investor Peter Klamka of Ann Arbor, Michigan a large shareholder in fast growing solar energy and reverse merger company Girasolar Inc (OTC: GRSR) stated that he thinks “the best way to go public in the current climate for most private companies, is with a Form 10 shell. It can be the least expensive method with the opportunity to avoid problems associated with most trading shells.”
At a purchase cost of approximately $50-$100,000, a Form 10 blank check shell company is an attractive vehicle for private companies searching for a route onto the public markets. But, under the purview of the Worm/Wulff Letters, blank check shares are prevented from instantaneously trading after Form 10-SB shells complete a reverse merger with a private firm, regardless of how long the shells have been reporting public companies.
The alternative is an already trading shell listed on the Pink Sheets or OTCBB, which, with acquisition costs ranging from $150K up to $1 Million is a much more expensive option.
The greatest benefit of using a Form 10 shell company as your route to public ownership is that the purchasing company will retain most if not all of the stock in the shell. Overall the process takes longer, but is ultimately a much better deal for shareholders and the company alike.
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