Is A Structured Payment Lump Sum A Good Choice?

Individuals who win a structured settlement in a lawsuit or whose lottery winnings are paid out as an annuity may choose to sell their rights to the settlement as a lump sum. You can choose to make a lump-sum payment to pay your bills, investments, or education expenses. Perhaps they want to be able to invest large sums of money to benefit from compound interest. The reasons are as diverse as the people receiving retirement benefits and pensions. In many cases, a lump-sum payment is preferable to payments over several decades. Advantages of selling structured payments

The main advantage of selling structured payments is that you receive a large amount of cash quickly. People who obtain this type of compensation in a personal injury case may need a large amount of money to pay their bills and expenses while out of work. Additionally, if the settlement proceeds are sold in bulk and the person or entity making the payment declares bankruptcy or otherwise breaches the contract, recovery from the payer becomes the concern of the company that purchased the structured settlement proceeds. It becomes. In other words, if you sell structured payments and the payer stops paying you, you're not left alone.

Other types of annuities may also be sold. 

Lottery winnings and litigation settlements are common types of settlements sold in bulk, but other types of annuities may also be sold. For example, annuity payments from an insurance policy can be sold in bulk. Let's say you've invested in a pension that's due soon, but suddenly you need a large sum of money. You can sell your pension in bulk to pay your pension and have your money in your hands in just a few weeks. In such cases, court approval may not be necessary.

Weigh the pros and cons of your situation. If you are receiving a payment from a pension, a court settlement, or a lottery win, only you can assess your situation and decide whether taking a pension lump sum is right for you. When you sell a structured settlement for cash, you give up some of your future annuity value. If you're dealing with a company that buys structured settlements for cash, make sure you understand exactly what you're giving up by selling outright. Many people, considering their financial situation, come to the conclusion that having a large amount of cash on hand right away is the best option.

Get cash instantly. 

Selling some annuities for cash does not require court approval. In this case, you can receive your cash after just two weeks. For structured settlement sales, which require court approval, he can expect it to take 30 to 60 days from the start of the process to receive the money. The specific time period depends on the laws of your state.

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