There are many reasons you could find yourself receiving a structured settlement. A structured settlement is a course of payments over a period rather than a lump sum of money. A structured settlement annuity could be the result of a employee lawsuit, malpractice lawsuit or a lottery winning. Medical malpractice lawsuits paid an average of 3.6 billion dollars in 2013 and employee lawsuits have risen by nearly 400% in the last 20 years. Becoming the victim of either of these two scenarios is not out the question and finding yourself in the midst of a structured settlement as the result is not either.
What are the Benefits of a Structured Settlement
The benefits of a structured settlement are in place to protect the recipient. Money that comes from settlement payments is usually tax free if the annuity is set up properly. These annuity payments also help to guarantee monthly income over a long period, even in extenuating circumstances such as job loss. This helps the recipient, because many times when money is received in a lump sum it is spent if not managed properly. Cash for structured settlement payments helps when a large lump sum of money is needed immediately rather than over a period of years.
How Does the Process Work
When considering getting cash for structured settlement payments a review team reviews your circumstances, situation and why you have an immediate need for cash. If the decision to move forward is made then a sum is decided which allows the recipient to surrender the monthly payments. A discount rate, comparable to that of a loan is also offered in return for immediate cash. The lower the discount rate the better the deal and the higher the discount rate the worse the deal so choose carefully.
How Long Until You Receive the Cash
Understanding the waiting times before deciding to get cash for structured settlement payments will help you with the entire process. There are a few steps that must be handled before you can receive your cash. Almost every state requires a judge’s approval before selling your annuity for instant cash. This is done in order to ensure that the cash option is done in your best interest and you are not being taken advantage of. The entire process can take upwards of around a month if not more.
What Factors Determine the Amount of Cash You Receive
Several factors will play into the amount of money you receive, and whether you get cash for structured settlement payments at all, or not. These factors include your current age, health and state of residency. How many payments you intend to sell and how much they total and the overall financial stability of your settlement company. Why you need the money immediately and your future financial needs will also be considered.
Roughly 92% of people who sell their structured settlement for cash are satisfied with their decision afterwards. Carefully consider you options and weigh your decision. Search out your options and ensure that you choose the best choice for you and your financial needs, then you too can be satisfied with your decision.