Payment For Future Money

Brokering the Deal

Preliminary research has indicated that there are more than 400,000 individuals nationwide that have been awarded structured settlements. An important question that you should ask a broker when considering getting a lump sum payment for future money is how many underwriters will they present your transaction to? This is a very critical issue because many brokers have entered into exclusive contracts with the 'funders' or buyers of structured settlements themselves and it may limit you on the amount you receive.

Generally, these exclusive contracts limit the broker as he or she has guaranteed to use only certain buyers of structured settlements. Many brokers have been seduced into signing contracts to bring their deals directly to these particular underwriters, thus eliminating any outside competition. This certainly affects you and how much of a payment for future money you will get for the transaction. The more options you have, the more chance of getting the most out of the transaction itself. Basically, when a 'funder' knows that no one else is bidding on your transaction, they will low-ball you and try to just pay what they want, which translates into as little as possible. You should certainly check out all of your options and shop around before committing to a particular broker.
 

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