Super Fitness Health BlogWhat You Should Know about Structured Settlement Payments
If you have won structured settlement or annuity payments then chances are you have done some research already regarding the advantages and disadvantages of them. Structured settlements are awarded to individuals who have won some type of legal lawsuit. The person who has won the judgment will start to receive payments from an insurance company for a number of months. These payments can range from a couple of months, a number of years or even a couple of lump sum of payments if the client chooses.
How are These Payments and Schedules Determined?
Well the person who is awarded the structured settlement annuity is allowed to discuss with his/her lawyer what they want and feel is best. If you decided that getting a lump sum of cash all up front is best then they try their best to work out those arrangements. In a lot of cases do to the nature of settlement payments the will award and ask that the payment be made over a specific number of months or years.
Most of the times making monthly payments makes it easier for the insurance company to make payments and also they look at making sure that the person who is awarded the money is placed in a situation to help their financial situation. If the person can no longer work they want a plan that can help this person for a longer period of time.
What If you Need a Large Sum Right Now?
The thing about the structured settlement is that once you choose your payment arrangements it can not be changed. If you now would like to get a lump sum of cash you will have to find a structured settlement buying company. These companies will buy some or all of your settlement payments and get you a lump of cash.
In some cases this may be what you need and in others you may want to think about if there is another way to solve your problem. When you sell your payments you will actually lose some of your payments in the process. With receiving the monthly payments you will always end up getting the settlement amount less the time value of money. You know what a dollar is worth today isn’t what it will be worth 30-40 years from now.
Selling Your Payments Right or Wrong
There is no right or wrong with it comes to selling your structured settlement payments for cash. If you have examined your situation, went out and got different quotes from many different companies and determined this is what you need then the decision is up to you. Be safe and get a second opinion and make sure you have an attorney helping you through the process if you decide to sell.
Comments are currently closed.