Selling Your Structured Settlement or Not?

Before you make a decision to sell your structured settlement, think about what exactly you need for the money. Urgent medical expenses, buying a house or the decision to do further study are typically considered as good reasons. Look at your needs and the needs of your family first. Maybe you desire a new house. Or do you have kids approaching college age? If so, you will not only bring upon yourself a significant tuition expenses, but you are also have less of necessitate for a bigger house.

You should know that selling your structured settlement payment will make you lose a full amount for sure. Think about whether it is vital for you to give up the safety and future total amount before you make a choice. You should understand the implication, benefits and negative aspect so you can feel satisfied in the process of making final decision.

What are the Selling Options?

There are several options if you decided to sell your structured settlement. Anyway, you do not have to sell the whole settlement amount if you wish to. Here are the available selling options to be chosen to:

i) Full amount – The purchaser (property/casualty company) will calculates the best present-day rate and offers a lump sum cash payment to buy your structured settlement.

ii) Part of the payments – Only a several number of your future payments are sold to them (property/casualty company) at their best present-day rate.

iii) By percentages – You are only selling some percentage of each payment to the property/casualty company and keep the remaining balance for yourself.

Risks of Selling Structured Settlement

1) Unethical agent/broker:
Selling your structured settlement payments will need you to contact an agent/broker who will be able to assist you to take care of the dealings. This mean you probably fall into some game-playing and/or exploitation strategy if you coincidently dealing with an unethical agent/broker. They probably promised you with high quote, but at the end they claims unable do the transaction unless they get more money or down payment from you. Other agent/brokers possibly will claim to be “experienced” even they are only completed a week-long course. So, make sure you are dealing with agent or broker who has several years of experience in structured settlement and they were member of the Better Business Bureau.

2) Losing some money:
As highlighted at earlier of this article, you will not obtain the whole amount that you suppose to get over time if you choose to sell your structured settlement payments. Thus, you will lose some money and the safety of your future payments.

3) Takes time:
Although the federal law needs court to watch over in these dealings helps to guard you, but it also holdups you from receiving the fund as soon as you wish for. If you need the fund immediately, this could irritate you and delay your plans for on time payment. Usually, once you make a decision to sell your structured settlement payments, the process can take as fast as 4 weeks and may up to 12 weeks to get the court order and for you to obtain your lump sum cash payment.

Benefits of Selling Structured Settlement

The most important benefit of selling your structured settlement payments is, apparently, that you will receive a lump sum of cash money in particular time which you are able to make use of in any way you wish for. Of course, this will provide you a great privilege and flexibility in using your money, and could make peace of mind too if you have an urgent expenditure that could not be paid in any other way.

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