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Settlement Funding - Settlement Funding Settlement funding is the dollars made available to a plaintiff by a settlement funding company or attorneys fighting the case. Settlement funding may be a structured settlement or lawsuit settlement or life settlement. A structured settlement is the payment of dollars for a personal injury claim where all or part pertaining to the settlement calls for future periodic payments. Lawsuit settlements are settlements based on compensation cases. Life settlements are based on Life Insurance policies. Lawsuit settlement funding may be pre-settlement funding or post-settlement funding. Usually persons are not directly funded by their lawyers, because State Bar Associations recognize that at the time a lawyer becomes a creditor or client, a conflict of interest is created that may interfere with the attorney-client relationship. Pre-settlement funding is given in advance to a user who has filed a lawsuit including is waiting for the settlement amount. In post-settlement funding, a user who got a positive compensation verdict, but has not yet received the money, gets funds from a funding company in anticipation of his verdict amount distribution. Both of these are non-recourse funding. Pre-settlement funding involves considerable risk, is a complex process including the fee rate is additionally high, as the verdict amount is a particular assumed value. Post-settlement funding is simple including usually absolutely no risk involved including the fee rate is low, as the verdict amount is a known value. Structured settlement funding does not depend upon the assumed strength pertaining to the settlement, as the settlement value is already determined. Moreover a particular annuity or government bond generally guarantees structured settlements. Life settlement funding is advanced to qualified life insurance policy owners to liquidate a life insurance policy for a particular amount much higher than the cash surrender value. If a senior user owns a policy that is absolutely no longer needed or affordable, then the life settlement funding companies help him in selling his life insurance policy at a much higher price.
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