by Structured Settlement Watchdog
How Do Structured Settlement Purchasing Companies Work?
Seems like a simple enough question, but not so straightforward for Annuity.org.
"When you contact a purchasing company, a representative will gather your information and calculate a quote based on how much cash you need and the number of payments you want to sell"
"Insurance companies take into account several factors when determining your quote, including:
- The value of your structured settlement annuity
- When your payments are disbursed
- The number of payments you want to sell
- Current market rates
- The rating of the insurance company that issued your annuity
- Fees or extra costs the insurance company may charge to initiate a transfer"
NON SEQUITUR ALERT!
"That’s because the purchasing company has legal and administrative costs to cover. Also, these companies exist to make a profit. High discount rates decrease the cash value of your settlement.
If you accept their quote, the purchasing company will send you a contract detailing the offer. Once the contract is signed, the company files necessary court documents and arranges a hearing."
The critiqued "masterpiece" was noted by Annuity.org to be written by Rachel Christian, edited by Kim Borwick and financially reviewed by Janet Berry-Johnson CPA, yet despite 3 stage "quality control" and citing 6 sources, this slipped through the cracks.
My interest is seeing that consumers have the clearest path to accurate information about structured settlements.