Wednesday, July 17, 2013

What is a structured settlement?

structured settlement is defined as an agreement by which an insurance company makes payments to an injured person as the result of a bodily injury claim settlement. The money then will be awarded to their surviving family if in the case that the injured individual is deceased.
For about 30 years, structured settlements have been around aiding injured person. For the insurance companies, rather than paying all at once, it is easier to pay over a period of time that is why structured settlements were established. Payouts must follow a certain structure that is why it was named structured settlements.
A financial institution is the only authorized body who can distribute structured settlements. In many cases, these institutions will specialize in structured settlements.
For a certain period of time or even over a lifetime the payments are made in installments. Some settlements accommodate immediate payment to comprehend a specific damage that occurred.
The defendant usually buys an annuity for you in the amount of the settlement. There are many different ways you can set the money such as when you are sick and entail medical care; you can save funds for your medical treatment.
Over a certain amount of time, a structured settlement annuity offers tax-free payments. In some cases, the payments can be made over the lifetime of the individual. In the event that the payee dies, then the payments can be made to their beneficiary.
The settlement cannot be changed once established. Hence, you need to be certain that it is arranged the way you want it. It will be helpful to have an attorney in determining the terms of the structured settlement.
Structured settlements are sometimes bought by many companies so that you can receive a lump sum. There are investors that are always seeking for people who want to cash out their structured settlement. If you really want to cash it out you may sell it by parts, or sell just a part of it.
You may exchange it with some companies who are willing to trade it with you if you think that selling your settlement is not a good idea.
Some states do not allow structured settlements so better think about it many time before deciding. Make some research about its pros and cons and weigh if they are right for you. Who knows it might be a good way for you to get the money that is meant for you.

Tuesday, July 2, 2013

Will paying my utility bills on time improve my credit score?

No, it doesn’t factor into the credit score.  Paying your utility bills such as electric company, the gas company, and your television and phone service, it also includes cellular phone providers, on time would not reflect and it doesn’t make it to your credit score.
Your utility companies has nothing to gain if they report you timely paymentsthat is why most utility companies don’t go to the effort and expense of reporting your timely payments to the credit bureaus.
But the thing is some utilities will make a report if you are late on your payments.  Therefore, it will likely go on your credit report if the account goes to a collections agency.  This will not happen unless you make an arrangement for payment with the
But you would rather not do so because this doesn’t mean that you have an excuse of not paying your bills on time.  The utilities are charging interest on late accounts, and therefore they can send the account to a collection agency.