Knowing All You Need To About Structured Settlements

Knowing All You Need To About Structured Settlements

One of the good things about having a structured settlement is that it guarantees a regular income of sorts for the lifetime of the annuity. This is helpful for those who have a limited source of funds. It also supplements any earnings that people currently make.

On the other hand, having those monthly payments can be inconvenient. Compared to a lump sum, they cannot be used for making major purchases or financial moves. For instance, they may not be able to cover existing debts, payment for a new car or real estate purchases.

Sometimes, even people who can use the regular payments feel the need to get the lump sum or several months' worth of payments. They want to do this instead of getting a loan that they are not sure they can repay with just their regular income. Temporary but major expenses such as rebuilding a house wrecked by natural disasters and expensive medical treatments can prompt this action as well.

Inflation is also a factor. The prices of commodities can increase or the value of money decreases over time. It is possible that the things that a dollar can buy today cannot be bought with the same amount two or three years from now.

In the case of people with long-term structured settlement annuities, this means dealing with rising cost of living while the monthly payment from the annuity remains the same. Keeping up with expenses may be a problem, especially if one's earnings are largely dependent on the annuity. Life in general may be more difficult.

There are companies that buy annuities, fortunately. People can sell all future payments or part of it, then receives the money of the sale through wire transfer or check. With some companies, they can ask for a cash advance while the sale is in progress.

Companies usually offer a free consultation at no cost and no obligation to people. They review their clients' financial situation and analyze their finances. Then they give them a quote as to the amount of money that their settlement can currently get them.

They also prepare all the relevant documents for the sale and establish a court date to secure the appropriate approval. The company usually pays all expenses such as notary, UPS and legal fees, to be reimbursed by the client. The turnaround time is can be as little as two or three weeks.