31 Jan 2015 --- Father and daughter with laptop and game at wooden table --- Image by © Uwe Umstätter/Westend61/Corbis

Reasons for Selling your Structured Settlement

No two people are exactly the same when it comes to selling structured settlement payments. You must ask yourself what the purpose is of selling your periodic payment stream for a lump sum of cash. Selling payments is an extremely important and personal decision that you need to feel comfortable with before making a transaction. Not only must you be comfortable with your reason to sell your structured settlement payments, the judge approving your transfer must also be made comfortable that you are making a wise financial decision.

Many annuitants feel trapped due the original set-up of their structured settlement annuity. What may have made sense 10 years ago may no longer meet the needs for an annuitant today. Selling structured settlement payments can be difficult and even overwhelming without professional guidance.

Some of the most common reasons for selling annuities include paying for an education, starting a business, purchasing a home or an investment property, and planning for the future. No matter what your reasons are for selling your payments, you should consult with a financial professional. If annuity payments are transferred incorrectly, there can be adverse tax consequences.

If you’ve looked at other options and feel confident that selling your payments is right for you, it’s imperative that you work with a company who truly has your best interest at heart. Several lump sum companies have reportedly been treating their clients poorly. Companies intentionally miscommunicate dollar amounts, and even misrepresent themselves all for their own profit. It’s highly important that you work with an honest company who will take care of you throughout the entire financial process.

In closing, each annuitant’s reason for selling their structured settlement payments is extremely personal. No matter what your circumstances might be, an industry expert should be involved with the process. Consult with a lump sum company like True Vision Funding to learn how the process works and decide if it’s right for you.