Structured settlement payments are extremely common – they are awarded as a matter of routine as a consequence of legal suits and lottery payouts. When it comes to lawsuits, it has been found that more 80% of cases end up with a financial settlement. Similarly, most lottery payments, jackpots and annuity schemes also come in the form of structured settlements that provide money over an extended period of time. I have often wondered if there was a way to sell my structured settlement payments for cash up front- a move that obviously has its advantages. Some research brought certain very interesting facts to light.
The main characteristic property of structured settlements is that you get paid small amounts over time. This is true for annuities, and also for lottery payouts. However, there are situations where you might immediately need a lump amount of cash. In these cases, you can opt to sell your structured settlements. There are many companies that purchase structured settlements and pay money up front. If what you need is immediate cash in hand for any reason, this is an option that can be explored.
Interesting Points and Benefits>
Structured settlement payments are inherently subject to taxes, annuity fees and penalties for early withdrawal. Annual processing fees for an annuity can be as much as 3%, whereas cashing out your annuity in the first seven years may incur a penalty of more than 5%. In these circumstances, selling your annuity can bring you better value, help you lower your taxes and fees and also make cash available at hand should you plan to start a business or settle debts.
When I was looking out for options to sell my structured settlement payments, I found the process to have its advantages. With many companies willing to purchase settlements, you can also easily get cash for settlements immediately should you choose to sell.