Structured settlements are the common method whereby people who have been wronged or have been injured receive periodic payments to address their monetary requirements. But it is also possible to sell the whole or part of your structured settlements to other people to receive a lump sum amount if the need arises. Some pointers to indicate why the structured settlement is a boon for both the retainers and the buyers are given below-
- Also by buying such settlements, they are obviously profiting by underpaying since the need of the seller here is the quick lump sum cash.
- For the seller, it is a way of generating the huge amount which is required immediately for maybe purchasing a home or for starting a new business.
- The benefit also lies in the fact that you have the option of selling part of your structured settlement or annuity which will take care of your current pressing problem and secure your future with the rest of the periodic payments of the remaining settlement amount.
Structured settlements are life-long monetary investments but a good source of quick money too
These periodic payments for the beneficiaries mean a long-life income stream guaranteed. Also, the tax exemption over the structured settlements increases its value. They remain protected from inflation issues and by and large, the people are secured financially for decades till the periodic payments last. Therefore, the decision to sell should be done with full consideration and after a full assessment. But the flip side of the coin here is once the structure or provisions of the payments are laid down, they cannot be tampered with, so in essence, they ignore all realistic needs of a lump sum amount that may arise in any household. Here the structured settlement buyers prove beneficial. These are organizations and financial institutions that buy the settlements but with the court’s consent and the deals also take place in the presence of the lawyers and brokers.
There are numerous benefits to the seller in the sale of such settlements
It is immensely satisfying when you need the money badly you can arrange it yourself and do not rely on anybody else’s favors. Although the current economical factors play a good role in deciding the amount that you will receive for the sale of the structured settlement that you wish to sell at a given point in time, you can choose the timing wisely to profit the most. The most immediate and valid reason for the sale is to take care of the urgent needs of the present than to worry about the future that no one has seen. Say for example, if the lump sum money gained has been used to further a business prospect then you have a fat chance to profit much more in your lucrative business than receiving the small amounts of your money in periodic payments which get squandered in useless expenditures. Sometimes the need of the hour is such that the full payment of your structured settlement is your last and only hope. Whichever way it may be, you are bound to get your amount through the legal means where the judge sanctions the dealing and the payment reaches your bank account in very little time.
How not selling your structured settlements can be the cause of your grievance
You also have to realize that the structured settlements cannot be used as collateral for any kind of loan that could help you in your difficult times. They just remain the way they have been decided upon and can help you only with their little amounts that reach you which cannot solve your bigger needs. The annuitant could transfer rights to kith and kin to receive future annuity payments. However, you would be compromising with your current lifestyle which would be quickly spiraling down in absence of the impetus of a structured settlement sale. You could use the flexibility of being allowed to sell your annuities to enjoy the freedom of lump-sum cash flow.
How the sale of the structured settlements should be handled
The entire process is court-approved and benefits the buyer. A structured settlement sale with a discounted rate of above 10%, which is generally the case, obviously means higher yields for the buyer than the seller. Therefore, keeping in mind the profit-making intentions of the buyers, the seller of the structured settlements should consider approaching more than one company to ascertain where he can get the highest payoff. There are many brokers too that can look after your interests in the whole process.
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