Welcome to Structured Settlements Guide
An online resource about selling a structured settlement. The information we provide is contained in the sections below
Structured settlement companies that buy a structured settlement do so at a profit. The amount of lump sum received by an individual selling either a part or the complete settlement is not the same as the value of the structured settlements sold. Read More
In nine cases out of ten, selling a structured settlement is not a good investment decision. Ideally, selling a structured settlement for cash should be the last alternative and should be resorted to only if the individual is confident of managing his own investment portfolio in a competent manner. This is because in any sale of a structured settlement, it is possible to lose up to half of the long-term value of the structured settlement. Read More
While the structure of your initial settlement was surely set up with the best intentions in mind, things do not always turn out that way. Of course the goal was to space out the payments in a way that would meet your financial needs over the term of the settlement. However, there is a flaw in this type of planning which is it is difficult to plan for the unexpected. Life does not follow a road map and of course ones circumstances and needs can change. In these cases it may make sense to consider selling your future payments to meet your new circumstances.
The reality is that we all have to adapt to changes in our lives whether they are expected changes or those unforeseen. Certainly whatever the case that led you to receive a financial settlement was unplanned just as financial pressures can arise that were unforeseen. From bankruptcy, to mounting credit card debt or medical bills your financial circumstances may have changed from your initially settlement. In these cases your settlement is not at all flexible and you do not have the ability to revisit the original agreement to make changes to adjust to your new situation.
How to Use your Future Payments:
While it is true you can not change the terms of your original settlement you do have the option to cash in your payments for a lump sum. Structured settlement buyers will offer you cash today for your future payments which can help you adapt to your new situation. It is also important to point out hat you do have a few options and some flexibility in how you sell future payments, if you decide to do so. Companies that buy annuity payments will provide you with several ways to receive cash.
Your options are
- Sell all of your future payments and receive one large lump sum payout
- Sell only a part of your future payments. This will allow you to get some cash today to meet your immediate needs while still allowing you to receive future payments.
- Another option you can discuss with a potential buyer is receiving a cash advance on a transaction so you can get money virtually immediately while you are waiting for the paperwork process to complete.
Understanding your options and getting quotes for each of the three ways above will help you make a more informed decision. It is very common for people to cash out and initially only sell a small portion of their payments. Then they realize they should have taken a larger sum so the end up selling a second block of payments to meet all of their immediate needs. You should take the time and care to weigh your options and needs so you can make the best decision for your circumstances.
A good structured settlement buyer can quickly and easily provide you the cash value of your payments and the options you need to consider.