A Few Things Everyone Should Know About Structured Settlements

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Can i sell my annuity

Structured settlements can be pretty confusing things, and unfortunately, they don’t seem to get any less confusing even if you find yourself with one. But the most important thing you can do in order to secure your own financial stability is to understand exactly what these are, and why you might want to sell your structured settlement payments in the future.

So with that in mind, let’s take a quick look at what things are:

What is a structured settlement? This is refers, more than anything else, to the way in which you receive a sum of money. It applies to cases like lawsuits and lottery payments, where the two choices are either to get a lump sum of money all at once or to get multiple smaller payments spread out over a long time.

What are the benefits of a structured settlement? The biggest advantage is probably the fact that you can ensure a long period of financial security, since a structured settlement functions almost like a paycheck. Another advantage is that the money will sit in an account and be exempt from taxes while it waits for you.

What are the disadvantages of structured settlements? In truth, there are quite a few reasons why people want to sell their structured settlements and get cash for structured settlement payments — up front, and all at once. Not having control over your own money is probably going to be the main reason why you’d want to sell your structured settlements; even though the money belongs to you, you can’t use all of it at once. Additionally, if you try to withdraw any money before the waiting period is over, you’ll face some steep early withdrawal fees.

So should you sell your structured settlements?

The answer here really depends on your financial situation and where you see yourself in a few years from now — but all that matters is that you’re able to get cash for settlements when you need it, and to do so securely and safely.


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