One of the good things about having a structured settlement is that it guarantees a regular income of sorts for the lifetime of the annuity. This is helpful for those who have a limited source of funds. It also supplements any earnings that people currently make.
It has its disadvantages, however. People have a significant amount tied up to monthly payments, when what would really help them is a lump sum that they can use for major financial undertakings. These can include clearing of current debts and buying a new house or a new car.
A lump sum is also a better option for some people than getting a loan. It is certainly more practical and prevents them from getting further in debt. The lump sum can be used for house repairs, expensive medical treatment and other short-term major expenses.
Inflation is also a factor. The prices of commodities can increase or the value of money decreases over time. It is possible that the things that a dollar can buy today cannot be bought with the same amount two or three years from now.
In the case of people with long-term structured settlement annuities, this means dealing with rising cost of living while the monthly payment from the annuity remains the same. Keeping up with expenses may be a problem, especially if one’s earnings are largely dependent on the annuity. Life in general may be more difficult.
Fortunately, there are companies that specialize in buying annuities. People can sell theirs to these companies partially or in full, with the option of receiving the funds via check or wire transfer. Some companies can extend a cash advance to their clients while the sale of the settlement is being processed.
Companies usually offer a free consultation at no cost and no obligation to people. They review their clients’ financial situation and analyze their finances. Then they give them a quote as to the amount of money that their settlement can currently get them.
They also prepare all the relevant documents for the sale and establish a court date to secure the appropriate approval. The company usually pays all expenses such as notary, UPS and legal fees, to be reimbursed by the client. The turnaround time is can be as little as two or three weeks.
If you do not want to wait for your structured settlement, you can have it set up to receive the payments sooner. Structured settlement annuities allow you to use the money when you feel the time is right, instead of when the court wants to give it to you.
