Selling Structured Settlement – A Brief Review

Are you in immediate financial need? If you have structured settlements that are offering a good amount to meet your current needs then you have a good option to get a lump sum amount in return for giving up on the future payments. Read on to know the pros and cons of structured settlement and the decision to sell them.

Managing your finances is an art. As the number of options and flexibility increases, so do the chances of the benefits being misused. Yet, that cannot be a good reason to make the system inflexible. The same logic goes behind structured settlements. Say, you have a structured settlement set up as the compensation for your insurance for an accident or against any other incident, or you have a large lottery payment to be received as structured payments. Structured payments have the benefit of being a regular source of income with little risk involved of the money being wasted. At the same time, there is inflexibility as your insurance company is not permitted to give you the entire amount at once. If you have an immediate need for finances in this scenario, what is the best step to take?

Structured payments are set up so that you can have a regular source of income rather than a lump sum amount that carries more risk of being misused. The idea was to provide more financial security to the victim of the accident or preventing misuse of huge sums of lottery money. However, at times when there is an urgent need of finances in the present, it becomes more important to give up on the future income to fulfill the present needs. For example, you have some urgent bills to pay for, an important upcoming project or simply because you have an opportunity where the money can be better utilized in the present, losing which would mean financial loss.

Fortunately, this flexibility in structured payments is provided by third party companies who can buy your structured payments. That means you give them the right to receive the amount on your behalf after every defined period, while they give you a lump sum amount for the structured payments. The amount you receive depends on the best quote the company can offer you for your structured payments and hence varies from company to company. They can also give you many other alternatives rather than purchasing all the structured payments and providing the entire amount at once. Again, how much flexibility the company can offer depends on their policies and vary from company to company.

However, do not be in a hurry to get your structured settlements sold for getting your money quickly. Be cautious of companies offering you a very attractive deal or promising payment within a day or two. Since the process involves legal obligations, it does take some time. Be careful while choosing your buyer of structured settlement payment. While you are looking for the highest quote, a good look at the company, the number of years it has been in business and the span of the business would guide you to a reliable company. Though there are legal processes to protect you from any fraudulent transactions, yet to be careful at your end makes sense when you have a large amount which is rightfully yours at stake. With a little awareness and careful planning you cannot go wrong in making your decision.

Structured Settlement Annuity Payments

Structured settlement cases have increased, and largely due to the maximum settlement awards in many lawsuits. When an individual has been the victim of an injury, directly related to the fault of a large company or corporation, the settlement deemed appropriate by the courts, is usually so large, the settlement is handled through annuity payments.

Annuity payments are divided into increments over a long period of time, sometimes over the lifetime of a claim recipient. The injured or affected parties in a settlement case usually have suffered over a long term rehabilitating process and the structured settlement annuity payments work well in providing timely access to funds needed by the injured party.

Often, in structured settlement cases, the initial annuity payments assist the injured parties to make current restitution with their accumulated medical bills, but as time goes on,the lost wages the injured party incurs, leaves a shortfall in ongoing daily expenses. Having to wait on the scheduled annuity payments becomes stressful and this actually affects the injured persons healing process in a negative manner. Adding stress or insult to injury prolongs the battle of recovery.

Once an injured party has suffered persistent stress and anxiety over their recovery time and financial concerns, they begin to reconsider if their installment payments are their best solution. They realize they do have options available to sell their structured settlement for a lump sum amount. There are companies and a few individuals willing to buy their annuity payments at a discount percentage of the total remaining value.

If a recipient of annuity payments is willing to accept a lesser total amount in a lump sum, in order to collect a final but larger immediate settlement, then the buyer of the note benefits from the entire remaining amount of the structured settlement.