Structured Settlement – To Sell or Not to Sell

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It is highly possible that you have already seen their advertisements on TV or have heard about them on your radio – finance firms that are eager to buy structured settlements or annuities or any other stream of regularly scheduled payments that are put into place by the law.

In simple terms, these companies will buy a portion or all of your structured settlement in exchange of a one time lump amount of cash. Now, you may have a number of questions in mind, like why would these companies want to buy such settlements, or what is it that they would gain from doing so? In truth, they will obtain the exact same benefits as you would should you retain and not sell your structured settlement.

However, the advantage to you is that you can get a lump sum of money all at once!

Tax Exemption – Contingent upon how the stream of payment is structured and decided by the court, the regularly scheduled payments may have limited or zero tax liability at all.

Steady and Reliable Income – Finance firms are just the same as you are – they require money that they can depend on in order for their business to persist. A structured settlement annuity is actually one among the most dependable streams of income around.

Healthy ROI – When a firm offers to buy your settlement, they are not going to buy it in its exact worth, which simply means that they are going to pay you slightly less as opposed to what you would have otherwise received should you decide to retain the settlement throughout its preset lifetime. For example, if your settlement is worth $100,000 for a span of ten years, then some of these companies may offer you, more or less, $80,000 to buy your settlement. This is actually where these finance companies make their earnings. It is kind of a win-win for both parties because you get a lot of money sooner and they still get a profit in the end.

So as you see, these finance firms have so many great reasons to buy your structured settlement payment stream. However, as what was mentioned early on, majority of such benefits are also applicable to you, and hence you need to carefully think it through if you are really eager to acquire that lump sum of cash right now.

Also, keep in mind that this is just assuming that cashing in on your structured settlement is indeed an option. A lot of states have laws in place that does not permit the selling of these settlements, and there could be federal restrictions that apply to you as well. So, make it sure that you do your homework prior you approach any of these firms. Click here for an opportunity to sell!

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