If you or your family has recently received a structured settlement, then you understand your repayments are intended to last you for years and even a lifetime. However, we know that life happens, and you might find yourself in a sudden financial bind.
Structured annuities are ideally suited for many different types of cases. Although these scheduled payments offer several advantages, it’s important to know the benefits along with the risks when deciding on any financial investment.
Pros of Structured Settlements
Payments are tax-free.
In the event of the recipient’s death, the beneficiary can continue steadily to receive tax-free payments.
Payments can be scheduled for almost any amount of time and can get started immediately or be deferred for as many years as requested. They can include future lump-sum payouts or benefit increases.
Spreading out payments as time passes can reduce the temptation to make large, extravagant purchases and guarantees future income. That is especially helpful if the recipient has a sickness that will require long-term care.
Unlike stocks, bonds and mutual funds, structured settlements do not fluctuate with market changes. Payments are guaranteed by the insurance provider that issued the annuity.
A structured settlement often yields, altogether, higher than a lump-sum payout would due to interest your annuity may earn as time passes.
When Would Someone Have a Structured Settlement?
Individuals and families can get a structured settlement after filing a civil claim for a loss and winning that claim, producing a pay out award. Structured settlements change from lump sum settlements for the reason that they’re designed to be disbursed in predetermined payments as time passes to provide long-term financial stability.
Payments can help people pay for the damages they’ve suffered, including medical bills, lost wages, property damage, and even funeral and burial expenses after losing someone you care about. However, if you suddenly need a sizable amount of money down the road, you however before can’t reverse your predetermined structured settlement payment schedule and have the rest of your settlement in cash. You can, however, sell the rights to your own future structured settlement payments if you need paid now to pay for something urgent and important.
Why Sell Your Settlement Payments
If you need cash, transferring the rights to your future structured settlement payments may be your only option. Though you will be selling your future payments at a discount, you may find that it’s the only path to pay extra for the expense that has come up.
Some other major benefits to selling your sell structured annuity payment include:
Receiving your desired sum within per month or two (rather than years): A buyout may be what you must see the money you’ve been promised all at once. Sometimes a chance will arise in your way of life that just can’t wait for your scheduled payments.
Paying off debts with high-interest rates: If you have outstanding debts with high interest rates, you understand that it will only be more difficult to pay it off over time. By paying everything now, you can free up money in the future for other interests and goals.
Additionally, we have an educated, compassionate team of real-life transaction navigators who are always open to provide you with customer service. Whether you want phone calls, texts, or email as your form of communication, our client team is always ready to reply to your questions, address your concerns, and cause you to be feel confident in whatever action you choose to take..
