F A Q
- Should I use the structure consultant that the insurance company provided me?
You can, of course, and they might do a nice job. The huge risk is that they don't do a good job because they were hired by your adversary. If you don't have your own consultant you may never know, but would you forever wonder? And, YOU ALWAYS HAVE THE CHOICE TO CHOOSE YOUR OWN EXPERT! - What type of fees are associated with doing a structured settlement?
There are no "visible" fees in a structure. Think buffet, not a la carte restaurant. Generally when you are provided a quote, any fees associated have been included. Of course, the insurance companies will make some profit, however, that is true for the other choices you’re likely considering. Banks, stockbrokers, insurance agents; all will make money in handling your money. As much as people like to think negatively about insurance companies, they serve a vital purpose and do a wonderful job of providing financial mechanisms specifically structured to meet your needs. - How do I know my structure consultant is the right one for me?
The best way to know that you’ve chosen the correct person for the job is to ask them any questions you have. It may take more than one conversation, but not too many. Not only should you get good answers, but I think the consultant you choose is the one who also presents you with information and ideas that you hadn’t already pondered. “Like-ability”, trust and experience are three major factors when choosing any consultant. Assuming your settlement annuity broker is qualified, has experience, has the appropriate credentials (i.e., membership in the National Structured Settlement Trade Association), and doesn't have a conflict, which happens often in the structured settlement annuity business, you should be good. It is always best to educate yourself before making a significant decision(s). That is why you are reading this information RIGHT NOW!! - How do you protect yourself in a structure?
The only risk of loss in a settlement annuity is that the insurance company providing your benefits may go under. Because the companies involved are very large and highly rated, the greatest protection is to split the total annuity premium with more than one company. Most people don't truly believe that any of the largest, oldest, most highly rated companies will go under; and, that if one them were severely troubled that the government would step in and solve the problem. As they did with AIG (now known as Chartis). Second, consider ratings. The four most well known ratings agencies are AM Best, Standard and Poor's, Moody's and Fitch. These folks wake up every morning with one job - to study various companies and rate them. Third, once you've chosen one or more companies that are highly rated, check for size. Very simply, the bigger the better. Beyond these three things there are nuances that only the most thorough person would investigate, and, guess what, you'd then be doing what the ratings companies do every day.
® 2011 STRATEGIC SETTLEMENTS
