Frequently asked questions
What is a structured settlement?
A structured settlement is an agreement that is reached between a claimant (person affected) and a defendant (person responsible) to settle a dispute arising from an accident, medical malpractice, wrongful death, or other event resulting in personal injury. The defendant, generally through his or her insurance company, agrees to pay monetary compensation to the claimant in a series of future payments rather than in an immediate lump sum. To fund the future payments, the defendant purchases an annuity and the annuity issuer (usually an insurance company) ensures that the payments agreed to by the parties are made.
How does Seneca One®’s services work?
We help structured settlement recipients all over the United States exchange their future payments for an immediate lump sum of money. One of our Annuity Specialists will discuss your situation with you and help you make a decision about selling all of your payments, or only part of your payment stream. We will pay you a fair present value of the annuity payments you sell, and there are no out-of-pocket fees or hidden costs. Seneca One is one of the only companies in the industry that pays all fees involved in processing and funding transactions. We will work with you to determine the specific amount of money that you are looking to raise.
How do I qualify?
If you receive structured settlement annuity payments, and you live in a state that allows for the assignment of your payments, you are automatically qualified for all the services Seneca One has to offer. All you have to do is explain to your Annuity Specialist what you want to do with the money and prove that your basic living expenses can be covered through other sources of income.
What if I live in a state that does not allow for the assignment of annuity payments?
There are currently five jurisdictions that do not provide statutory provisions for the sale of annuity payments: DC, NH, ND, VT, and WI. However, if you live in one of these states, we may still be able to help you if the annuity company paying you is domiciled in an approved state.
Does Seneca One work with all types of annuities?
We do not work with workman’s compensation payments, divorce settlements, child support payments, unemployment benefits, retirement funds, pensions, trust funds, or social security disability insurance payments.
Do I need to have good credit in order to sell my settlement payments?
No. We do not have any sort of credit score requirement.
Can I sell all my payments or only a portion of my payments for a lump sum?
It is up to you and how much money you need as to whether or not you sell all or only a few of your future payments. Your Annuity Specialist will work out different options with you to ensure you make the right decision.
How long does it take to get funded?
The time frame varies based on the statutory requirements of your state. A typical transaction will take between 60 and 90 days. Depending on your state, we may be able to complete the transaction in as little as four weeks. Once your transaction is in process, your Annuity Specialist will be able to give you a more accurate timeline.
Can I get a cash advance while I wait for my transaction to be completed?
Certain circumstances permit a cash advance, however there are qualifications regarding your transaction that must be met. Details of those qualifications can be explained to you by one of our Annuity Specialists.
When do I have to pay the advance back?
There is no need to worry about payback dates or extra fees. The money you receive from your advance check is automatically deducted from your lump sum.
Do I need a lawyer?
Seneca One is staffed with highly trained professionals who use standardized agreements and comply with all relevant laws. However, we are not lawyers and can not give you legal advice. Some states require that you talk to an attorney before you proceed with a transaction, but many do not. In any transaction that affects your structured settlement annuity, we recommend that you obtain independent legal advice to reinforce and support your decision to sell.
What documents do I need?
To start your transaction, we need a copy of your settlement agreement, annuity policy/contract, and a copy of your driver’s license or other form of personal identification. If you have lost or misplaced your documents, you can usually contact the annuity company that is making your payments and ask them to provide you with another copy.
Will I have to pay taxes on the lump sum I receive from my annuity payments?
Generally you will not have to pay taxes. In most cases when a court order is obtained, your structured settlement annuity stream retains its tax-free status when it is converted to a lump sum. We recommend that you consult with a tax advisor to be sure.
How do I know my rights are protected?
Federal law, combined with laws passed in most states, clearly directs what steps must be taken legally when you decide to sell your future payments for a lump sum. These laws protect your rights and interests by requiring a court ordered approval of any transaction. Currently, 46 states carry statutes.
How do I know Seneca One is reputable and trustworthy?
At Seneca One, we stake our reputation on ensuring that our customers receive the best possible level of care and service. If we do not believe the transaction is in your best interest, we will tell you up front and explain to you the reasons why. We have over 20 years experience in the industry and have become the trusted source for people like you who are looking for financial solutions throughout the United States.
Seneca One is a proud member and in good standing with the Better Business Bureau, Maryland Chapter.
