Isn't it a shame we can't all take out funeral insurance on a dead investment? Probably if we could, then there would be far less likelihood of having any investment 'die' on us! I am getting very cynical in my wisdom as I grow older.
But now is not the time to sell your structured settlement policy. I think with Christmas just around the corner some people are probably thinking of passing it in or at least taking out a cash advance against it. A small cash advance probably wouldn't do too much harm but to take out a large loan against it at this point in time is probably not the brightest idea for you.
Everyone (by that I mean the average Jill and Joe) are struggling this season with a cash flow shortage. Borrowing heavily against a soon-to-mature policy is not a good idea.
The reason I believe this is because the interest rate on borrowings will rise over the next 12 months and if your income is on the decline, you will end up with worse financial problems.
As always, it's your decision whether to sell or hold, and I am simply advising against it. Hopefully, I'm wrong. But what if I'm right?
Showing posts with label cash for structured settlement. Show all posts
Showing posts with label cash for structured settlement. Show all posts
Monday, December 13, 2010
Thursday, December 17, 2009
Is it a Good Time to Buy Structured Settlements?
To buy a structured settlement in todays financial climate could be an interesting exercise in financial investing. According to Ben Bernanke, from the US Federal Reserve bank, the future is still far from certain. If you were to buy structured settlements at this point in time you could either make a heap of money or lose your shirt.
The upside to buying this type of investment is if the market does stabilise and you have been able to buy the settlement at a heavily discounted price and the settlement agreement is from a financially secure institution, then you and your bank manager will be very happy customers.
On the other side, if you buy a structured settlement from a less than financially secure institution, and you paid almost face value price minus interest costs, you could end up minus your shirt and with a very unhappy financial advisor along with a very unhappy bank manager. Not to mention that if you live in the northern hemisphere, you will quickly feel the cold tickling around bare ribs.
Ben Bernanke has been probably one of the most financially influential listened to gurus for a number of years now and if he's advising caution to financial institutions and investors, then why disregard his advice at this point in time? Yes, I do hold him partially responsible for the mess the world's economy is in now but I do think perhaps he isn't all bad and now he is looking for the best way for all of us out of a failed financial system.
If you are seriously considering buying a structured settlement contract at this point in time then you will need to carefully research the financial institution who has issued the contract and do a severe due diligence on their viability.
Don't forget, AIG and Bear Sterns may have been 'too big to fail' but how many times and how many other insurance and financial institutions are the Tax payers around the world prepared to bail out of corporate greedy decisions, especially when today we see in the Guardian Newspaper in the UK that the British Government has had to legislate a special "Bonus Tax" because the banks are still giving their corporate governors multi-millions in bonus payments.
Buying a structured settlement agreement today is still risky business and you need more information available to you rather than just listening to what the hawkers of financial products are 'talking up' around the world.
The upside to buying this type of investment is if the market does stabilise and you have been able to buy the settlement at a heavily discounted price and the settlement agreement is from a financially secure institution, then you and your bank manager will be very happy customers.
On the other side, if you buy a structured settlement from a less than financially secure institution, and you paid almost face value price minus interest costs, you could end up minus your shirt and with a very unhappy financial advisor along with a very unhappy bank manager. Not to mention that if you live in the northern hemisphere, you will quickly feel the cold tickling around bare ribs.
Ben Bernanke has been probably one of the most financially influential listened to gurus for a number of years now and if he's advising caution to financial institutions and investors, then why disregard his advice at this point in time? Yes, I do hold him partially responsible for the mess the world's economy is in now but I do think perhaps he isn't all bad and now he is looking for the best way for all of us out of a failed financial system.
If you are seriously considering buying a structured settlement contract at this point in time then you will need to carefully research the financial institution who has issued the contract and do a severe due diligence on their viability.
Don't forget, AIG and Bear Sterns may have been 'too big to fail' but how many times and how many other insurance and financial institutions are the Tax payers around the world prepared to bail out of corporate greedy decisions, especially when today we see in the Guardian Newspaper in the UK that the British Government has had to legislate a special "Bonus Tax" because the banks are still giving their corporate governors multi-millions in bonus payments.
Buying a structured settlement agreement today is still risky business and you need more information available to you rather than just listening to what the hawkers of financial products are 'talking up' around the world.
Wednesday, November 18, 2009
Life Insurance Information
When you fist investigate taking out a life insurance policy to cover yourself as the beneficiary or your wife and family as the beneficiaries all the legal 'mumbo-jumbo' can seem daunting. Here is a very brief explanation of some of the more common insurance classes that are used in Australia and most other countries around the world.
Firstly, an insurance policy is a contract between you and the insurance company you choose. When the insurance policy matures the beneficiaries will be paid out via a structured settlement even if it is paid as a lump sum payment.
It is a contract to pay which means the terms have already been structured into the policy maturity conditions.
Please be aware that each country has their own insurance statutes and laws and each insurance company have their own laws and by-laws governing all types of insurance policies in line with the country in which the insurance policy is applicable and then each company also has their own terms and Conditions applicable to each insurance policy. Read More
Firstly, an insurance policy is a contract between you and the insurance company you choose. When the insurance policy matures the beneficiaries will be paid out via a structured settlement even if it is paid as a lump sum payment.
It is a contract to pay which means the terms have already been structured into the policy maturity conditions.
Please be aware that each country has their own insurance statutes and laws and each insurance company have their own laws and by-laws governing all types of insurance policies in line with the country in which the insurance policy is applicable and then each company also has their own terms and Conditions applicable to each insurance policy. Read More
Wednesday, November 4, 2009
Receive Cash for a Structured Settlement Agreement
A structured settlement is an agreement put into contractual form for the payment of an agreed sum of money to be available on the occasion that a certain event has occurred. The best example of this type of contractual agreement is a life insurance policy.
A life insurance policy is said to mature read more here
A life insurance policy is said to mature read more here
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