Unlock your money today
Selling your structured settlement or annuity payments is the right way to solve a wide range of financial troubles that you might have. Whether you ve got to pay off standing debt or you want to invest in a new house or a college education, selling a portion or the entirety of your future payments is a way to get your finances back in control.
To get money now, call 1-800-CASH-ME-OUT and one of our representatives will be in touch with you shortly.
Why sell your structured settlement or annuity?
When you ve got an emergency or other important issue, cashing in on your annuity is better than putting your life on hold. Get your money today by selling your payments and you will be able to buy that new home, fund your kids college education or invest it in your portfolio.
Here are a couple of reasons why people choose to sell their structured settlement:
- Paying off debt (students loans, bank loans, medical, etc.)
- Buying or repairing a home
- Funding your children s college education
- Investing in your retirement fund
- Investing in property or stocks or even a business
Any event or activity that requires a lump sum of money will be made possible by selling your structured settlement.
What is a structured settlement?
When a plaintiff settles a case for a large sum of money, he will usually have the option of receiving either one large lump sum or a number of periodic payments spread over years or a lifetime. When a settlement is paid in this manner, it is called a structured settlement. The purchase of annuities from a life insurance company allows for periodic payments to be made to an individual, as it is laid out in the settlement agreement.
A structured settlement can be arranged in almost any way the parties want it to be. As an example, you can have quarterly payments, annual payments, or you can have lump sum payments every couple of years. Make sure though that you discuss this with your attorney before you sign the settlement agreement because once you ve signed, there is no way to change it.
How to benefit from a structured settlement
The number one benefit of structured settlements or annuity payments is tax exemption. With the right setup, a structured settlement will reduce your tax obligations and in most cases will grant you tax-free status on future payments.
Another benefit of structured settlements are spendthrift requirements which will protect the plaintiff from poor financial decisions. Some people just aren t good with money the minute they get a larger lump sum they go out and spend it all or give it away by investing in dubious opportunities or even lending relatives money. Minors can benefit from structured settlements by having certain costs covered during their youth with a provision of getting an increase in the future to cover for college or other educational expenses. Injured persons who have specific medical needs will benefit from having periodic payments to buy special supplies, medical equipment and other costs.
Sometimes, in cases of severely disabled persons, it may be more appropriate to setup a special needs trust instead of a structured or lump sum settlement. Consult with a financial planner to know which options would be best for you in the present and future.
The downside of structured settlements
Many people feel like their money is locked away by structured settlements. They have more immediate needs like buying a house, a car or investing in something, but they re forced to wait to receive these periodic payments before they can act.
Fortunately there is the option of selling your structured settlement or annuity. Selling a portion or the entirety of your structure will give you a lump sum which you can invest right away. Standard investment avenues will give you a greater return-on-investment than the annuity you receive from a structured settlement.
How to sell your structured settlement
If you re experiencing financial hardship or you need money now to invest in stocks or property, you are probably interested in selling your structured settlement. An estimate 2/3 of states now have laws that restrict the sale of structured settlements where a court hearing is required and tax-free structures are subject to federal restrictions when sold to a third party. Some insurance companies will even prevent selling by having specific rules that do not allow for the transfer or assignment of annuities to third parties. Because of this, your location and terms of your settlement will play a big role in determining whether you can sell your structured settlement or not.
Keep in mind that by selling today, you will receive less than the actual value of the structured settlement. However, the right way to think about this is that you re trading a small portion of the annuity for instant access today. Would you rather wait 10 to 15 years to get that money or would you rather get it now and put it to good use right away?
We offer the more than any other buyer of structured settlements. Our company is established, well-funded and has plenty of experience in this area.
Considerations before signing a settlement agreement
Before you sign the dotted line on the settlement agreement, there are a couple of things you should keep in mind.
Watch out for excessive commissions. Insurance companies make a pretty profit from annuities and these often come with high commissions attached. Make sure that the commissions attached to the structured settlement don t eat up a significant portion from the original sum.
Low dollar value. Some defendants, after negotiating a settlement figure, will overstate the value of the settlement. If the plaintiff accepts this figure, they will find out through investigation that they re actually receiving less than they should. A common scheme is for the defendant to pay the full nominal value of the settlement to get significant rebates from the companies that they re buying the annuities from. As a plaintiff, you should compare commissions and fees charged for similar structured settlements with a number of insurance companies. This way, you ll know for sure if you re getting the full value. It s possible to discuss with your attorney to have a condition written down so that the defendant pays the full value of the settlement and that any rebates received by him will go directly to the plaintiff.
Self-dealing lawyers. Make sure that your lawyer isn t involved in the insurance business by setting up a settlement on behalf of you without disclosing that he is buying the annuities from his own business or a business that is paying him commissions on the annuities. In other cases it was found that the attorney would recommend a financial planner without disclosing his affiliation to him, thus receiving a nice referral fee from it. Ask your lawyer if he has any affiliation to the financial services recommended by him.
Take life expectancy into account. An unfortunate fact is that many plaintiffs who obtain a settlement will have a shortened life expectancy as a result of their injuries. Consider whether it s appropriate to have a structured settlement where payments cease upon death. You can insist upon an annuity that pays a specific minimum amount, so that value of the settlement is not captured by insurance companies if death were to occur.
Multiple insurance companies. If you ve got a large settlement, you can always buy annuities from a number of insurance companies. This ensures that you re still protected and continue receiving payments in case where one of the company that issued the annuity goes into bankruptcy. This way you re still set up to receive periodic payments, even if the company defaults in part or in full.
There s no better time to sell your structured settlement than now. Life waits for nobody. There are bills to be paid, education to be provided for and opportunities to be invested in. Call 1-800-CASH-ME-OUT to get access to your money, today.
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