More and more Americans are opting to sell structured settlement payments instead of receiving monthly annuities. This is because they are beginning to realize that because of inflation money today is always worth more than money in the future. Furthermore, people prefer the certainty of having cash in hand.
What Is a Structured Settlement?
For those of you who are unfamiliar, a structured settlement is an agreement between an injury claimant and defendant whereby the injured party is paid a certain amount every month for a period of time. This is referred to as an annuity and is not subject to federal or state tax. This arrangement usually benefits both parties because the plaintiff receives money every month to pay for medical bills, rehab, in-home care, and all other expenses necessary for recovery. At the same time, the defendant is able to settle the case little by little without having to break the bank.
The Disadvantages of a Structured Settlement
However, this arrangement does not make sense all the time. Those who are just about to retire, those who need to make a big purchase or come across a rare investment opportunity may consider selling structured settlement payments for a lump sum to be more practical.
Even though the lump sum would be less than the total settlement amount, if the seller has the business savvy, investing that money could yield many times the initial amount.
The Available Options When Selling Structured Settlement Payments
What makes selling structured settlement payments even more appealing is the option to sell certain portions of your payments while retaining the rest. If you exercise this option, not only do you get a lump sum of cash you can spend at will but you also still keep getting periodic payments. If you ask around, you will discover that here are many other options available as well so you can be sure that there is one that is a perfect fit for your needs.
If you want to avoid all the things that would gradually devalue your assets, selling structured settlement payments could be the best financial move you will ever make. Just be certain you sell to a qualified and reputable buyer who is willing and able to offer you top dollar for your annuities.
Tags: Sell Structured Settlement Payments, selling structured settlement payments
[...] for many, it’s the beginning of a new set of challenges in their lives. Fortunately, you can sell structured settlement payments, and many find selling these payments for cash is the answer to their financial [...]