There are many reasons to consider the sale of your structured settlement annuity.
Often times the reason is simply that the annuity
payments coming in over time are no longer appropriate for the needs of
the recipient. For example, the structured settlement annuity could
have been awarded when the accident victim was a minor, but now as an
adult with a full time job they would benefit more from receiving a lump
sum of money today.
Sometimes there are very specific reasons why
small periodic payments do not meet the needs of the structured
settlement annuity recipient, and only a lump sum can help accomplish
their goals.
Some of the reasons are:
Buying or repairing a home
Use a lump sum to make a down-payment on your new home or make repairs to your existing home.
Starting or investing in a business
Use a lump sum of cash as start-up capital for a new business or to grow an existing business.
Funding a college education
With the costs of tuition sky-rocketing, you can use a lump sum to pay for college while keeping your family debt free.
Paying off debt
Use a lump sum of cash to pay off credit cards, consumer debt, student loans, and medical expenses.
Divorce
Divorce can be financially devastating. Use a lump sum to fund your legal expenses up front and get the best settlement possible.
Investing
You can use a lump sum to invest in property, stocks, or retirement funds.
Sometimes recipients of structured settlements
just want to have all their money today and don’t want to have their
asset in the hands of the insurance company.
In some cases, a loan can be considered as
an alternative to selling your structured settlement annuity. However,
this is often an inferior option to selling your structured settlement
annuity because the interest rate on the loan may be high, and you must
be disciplined to apply your structured settlement annuity payments to
repay your loan. If you don’t, you could end up with outstanding debt
plus interest and no more payments coming in to pay the loan off.
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