You can get structured settlement loans in almost all states of the US˳ Mostly, people enter into structured settlements for getting compensation from the companies or individuals after lawsuits˳ This compensation is paid over a set time period, and in equal installments˳ These installments are mostly in the form of life insurance agreement that can also be used as collateral for getting loans˳ The procedure for apply for structured settlement loans is easy and fast˳
Prerequisites
If you want to apply for a loan then you must first understand the kind of structured settlement you have˳ It would be a mistake to apply for a loan when your structured settlement has a clause that you cannot take out financial leverages or loans by using the document as collateral˳ However, if there are no such restrictions present, then you can apply for loan˳ Permission of court will still be needed if settlement has been reached under its instructions˳
You will also have to seek permission of the defendants and insurer if you’d reached out of court settlement for your personal injury lawsuit˳ You can immediately start your loan application process once you are sure that there are no legal restrictions or snags˳
Application
The financial institution or bank can accept your loan application after scrutinizing and evaluating all the documents˳ Processing may take 90-120 days in some cases˳ On the other hand, selling your annuity won’t take that much time as you can get money in 45 days or less˳
You will have to pay fees once your application has been processed and loan approved˳ This fee and some other charges and few jurisdictions also deduct some income tax on the loan amount˳ However, you can spend the loan amount as per your needs and pay it back with annuity payments˳
Comparison with the settlement sales
You should compare sale of settlement agreement with the disbursal of your loan˳ If you have to sell an annuity, then you may have to pay more fees and there would also be some deduction of taxes˳ This will cease your settlement agreement, and you won’t get any payments in future˳ If you take loan on structured settlement then your original settlement plan would remain intact, but you will have to repay your loan with these payments˳
Most of the annuity buyers only buy 50 percent of the settlements but most of the loans are spread over almost 100 percent of the payment plan˳ This offers much better leverage to all those who take out loans as they can spend on number of options, including investment in property˳
Check the credentials of the lenders of structured settlement loans that you are considering˳ Preferably hire a lawyer because they can examine the loan contact papers before you sign them, and they will ensure that you understand the terms of the loan, interest and other conditions˳ Also check for any hidden costs and fees that were not discussed during initial stages˳ Familiarize yourself with present interest rates of structured settlement loans to ensure that you aren’t getting charged outrageously high rates˳
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