Brokers have an appreciable role to play in the structured settlements market, and we take a thorough look through the kinds of responsibilities they have, the advantages they bring to the table and the scenarios where you might want to depend on their services.
The Responsibilities Of A Broker
A broker’s responsibilities differ depending upon whether you are trying to negotiate a structured settlement with your employer or any insurance company, or selling already owned structured settlements to a qualified buyer.
- When you are negotiating for structured settlement with an insurance firm, the broker has the responsibility of guiding you on estimating the kind of medical, nursing and peripheral costs you’d incur in the future, and reaching on amounts that are sufficient to cover your requirements. Also, brokers need to be able to get the best deal for you in terms of the clauses of the settlement. These brokers need to be registered with the Department of Justice.
- When you are trying to sell off your structured settlements, a broker is responsible for connecting you to buyers, helping you find the buyer insisting upon the lowest discount rate, and then guiding you throughout the court approval process.
Advantages That Structured Settlement Brokers Bring To The Table
Saving you a lot of hassle – Nor willing to invest time in finding the most suitable buyer? Depend upon brokers to connect you to the best!
The most accurate and updated information – It is important that every step you take while executing your structured settlement sale be based on precise and correct information. With a broker by your side, you will have ample inputs at all stages.
Keeping documentation in order for speedy court approval – Brokers are well versed with the court proceedings, and use their knowledge to great effect by keeping you well informed in terms of the documents you need to keep in order. Also, with a broker’s inputs, you are more likely to get the court approval for your structured settlement sale.
When Should You Seriously Contemplate Opting For The Services Of A Broker?
That’s pretty much the question that plagues the mind of every individual looking to sell off structured settlements. There have been cases when brokers have ensured that structured settlement owners get a fair deal, and have hence contributed positively.
Of course, on the other side, there have also been cases wherein brokers have not really been able to bring in any differentiation, and have only proved to be an expense for the owners of structured settlements. Hence, this question continues to persist. Here, we try to figure out scenarios that warrant the inclusion of a broker in the scheme of things.
You have absolutely no idea about where to begin – If your family and you are distressed by a huge financial burden, and in addition to that, your problems are aggravated because of the fact that you have absolutely no knowledge of how you can sell off your structured settlements to improve your situation, then taking the help of a broker could prove to be very helpful.
Brokers are well aware of the entire selling process associated with structured settlements. They’d guide you right from the very first step to the very last. Also, the fact that selling your structured settlements off requires the intervention of court, there’s no way you’d be able to seamlessly sail through the sale if you are not proactive enough to have ala broker to help you.
The amounts involved are stratospheric – Considering the fact that structured settlements are pretty long term financial arrangements; the amounts associated with their sales are usually pretty high, unless the sale is being at a very late stage of the complete settlement duration.
Considering a case wherein you wish to encash your remaining structured settlement amount with about $100,000 remaining to be paid to you by the other party, if the broker is able to make a difference of 1% in the discount rate used by the buyer of the structured settlement, it could lead to an additional benefit of $1,000, which is a pretty substantial amount, and enough to cover the fees of the broker and all the expenses you incur during the sale of the structured settlement.
The structured settlement purchasing market in your geography is not yet fully developed – It could be a disappointing journey for you to note that there are no buyers for your structured settlements. Considering the fact that the purchasing market for structured settlements is not yet completely in bloom, this is not too distant a reality. In such a situation, it makes a lot of sense for you to use the services of a broker, so that you are able to negotiate a great deal from the buyers.
The reputation of buyers is not that great – Why risk being duped by a seller? Of course, the fact that regulations governing structured settlement sales are stringent enough to prevent a seller being fleeced makes sure that there are no huge financial risks in deciding to sell of your structured settlements.
However, there exist unscrupulous parties that try to intervene in such deals and blindfold the seller into taking a wrong step. If you are not sure about the few structured settlement buyers you’d want to deal with, it will make sense for you to engage a broker in the scheme of things. Brokers have complete knowledge about the processes, and will see to it that you are not left stranded at any time.