Perhaps you’ve been involved with a lawsuit wherein you’ve been awarded a single payment as a consequence of some injury you’ve sustained from another party. As a result, you don’t want this awarded as a single payment, and choose instead, for periodic payments. This payment agreement is called a structured settlement and has some advantages. The main advantage is having payments available over a long period of time.
However, initial conditions can change and you might find yourself looking for a lump sum payment you’d initially decided against. It is possible to sell this resolution amount to be able to get a one-time lump sum payment in place of installment payments. Whether you have an immediate need for money or not, it’s comforting knowing you aren’t stuck with the structured settlement payment plan you initially accepted.
There are a lot of reasons to sell one’s annuity payments. Maybe your expenses haven’t kept up with inflation or you also have debts you feel compelled to pay or schooling expenses that exceed your original needs. Many structured settlement payees use the lump sum option to buy a house or even start a business. No matter what the reasons for selling structured settlement payments are, it’s the annuitants choice to sell, which provides a huge monetary flexibility.
In fact, an annuitant can sell all the remaining payments or only a portion of them. While it’s legal to sell structured settlement payments, a payee will still need to use the legal system to get the acceptance for the sale. It is equally significant to receive sound financial advice so as to discover if it is in your very best interest to sell the whole structured settlement or only a part of the settlement payments.
It’s important to contact a respectable lump sum company to ensure full transparency, a company that will help walk the annuitant through the process and ensure they are available to answer any questions. Remember, a structured arrangement is an asset, and like something you’d sell, you need to get fair value for your payments. It’s also important to note that your settlement payment will be bought at a discounted price. Companies are essentially switching place with the annuity owner and will receive payments over the life of an annuity.
Despite the fact that you’ll receive less money than the initial lump sum payment, it’ll supply you with the instant cash that you need. It’s equally important when starting the process of selling structured settlement payments that you’re the owner and still have payments to sell. Most importantly, anyone who chooses to sell their annuity payments must be certain they are dealing with a trustworthy lump sum company.