Structured settlements expert John Darer reviews the latest structured settlements and settlement planning information and news, and provides expert opinion and highly regarded commentary. that is spicy, Informative, irreverent and effective for over 20 years.
The STRUCTURED SETTLEMENTS 4REAL® Blog is a highly regarded source for structured settlement news, information, and commentary, led by structured settlement and settlement planning subect mater expert John Darer CLU ChFC MSSC CeFT RSP CLTC. With two decades of operation, the blog and 4structures.com are recognized as comprehensive resources, offering detailed guides and specialized insights. Established in 2005, the blog caters to a broad audience, including legal professionals, injured individuals, families, and various stakeholders, providing reviews and opinions on settlement planning. John Darer, President of 4structures.com LLC, is a seasoned structured settlement expert with over 40 years of financial services experience and 31 years specializing in structured settlements. Based in Stamford, CT, he is a Certified Financial Transitionist and Registered Settlement Planner, holding insurance licenses in 45 states and the District of Columbia. John Darer is dedicated to transparency and advocacy, he emphasizes the importance of engaging trained and licensed professionals for settlement planning, offering valuable insights through his investigative journalism and professional commentary.
When is a Structured Settlement Payment Servicing Agreement Needed?
Structured settlement payment servicing arises when an annuitant chooses to sell part of their payments to raise cash now.
Structured settlement payment servicing is needed. This is because some life insurance companies that issue structured settlement annuities choose not to split payments. Instead, they transfer all payment rights (including the unsold part) to a factoring company or servicing entity. This entity receives the payments from the annuity issuer. It handles the task of dividing them between the annuitant and the investor(s). Life insurance companies make choices for different reasons. It is to save money or for other factors. Regardless, such circumstances do exist.
When a servicing agreement is in place, the annuitant must contact this entity, NOT the annuity issuer for questions about the payments beings serviced.
If a structured settlement annuitant sells only a sliver of their payments, they face restrictions. This can happen a few months after the annuity is issued. They no longer be capable of contacting the annuity issuer. They must deal with the payment servicing company for the duration of the payments being serviced.
It is only fair in such circumstances that an annuitant should not live in a state of confusion. They deserve to have the most direct route to the answers to their questions and/or service needs.
It has been said that less than 5% of structured settlements are factored. This author believes that this figure only shows the sold payment structured settlement payment rights. The volume of payments being serviced is larger.
Now that the cat is out of the bag about the reasons for structured settlement servicing, 4structures.com, LLC is compiling a list of structured servicing companies and their telephone numbers. This will help annuitants have their questions answered. This author is canvassing all factoring companies and factoring brokers to supply the list:
Does your company service payments for annuitants? Have they sold only a part of their structured settlement payment rights to you?
Do you use a third party servicers? Under what circumstances?
Your toll-free customer service phone number
If you use third party servicers, what is their toll free customer service number?
Is this a separate dedicated line for assisting customers with tasks like beneficiary changes? Does it also handle direct deposits and location updates? Is it distinct from the call center handling responses to TV, radio, and internet ads?
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