News and Tips on structured settlement transfers.

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Selling Your Structured Settlement: Considering Future Value

Though structured settlements are primarily meant to be a method of payment of personal injury compensation, they can also provide a financial windfall for those in need of quick cash. They are intended to provide long-term stable income for claimant and cover medical and life costs. Instead of receiving one big lump sum, which can be more of a burden than a solution, claimant will receive regular monthly or annual payments. This provides greater financial security and ensures that claimant will have funds to provide for him self. So, why would you want to sell your structured settlement? Let’s read more to get a better idea of what we mean.

Even though they are an excellent way of settling personal injury cases, structured settlements have a few disadvantages. Before they are signed, they can be shaped in almost every form, whether it is annual payments, monthly, bi-monthly, or any combination of the above.

You can arrange for every tenth payment to be larger than regular ones, if you need to do so. In that sense, structured settlements are very flexible. However, once signed, they might as well be set in stone for that matter.

Not one letter can be changed. This aspect of structured settlements can be unfortunate; considering life does not always goes as we planned. You may find your self in a situation where you need substantial amount of cash, whether is that down payment for a new home or college tuition. Sometimes the only solution is to sell your structured settlement.

There are plenty of companies on the market that specialize in buying structured settlements. They all offer different terms so it is a good idea to ask around a bit before actually selling. The basis principle is the same with all of them. You sell your future income for the lump sum paid to you today. If you have decided to sell your settlement, one thing must be clear to you.

You will not get as much money as you would from your original settlement. The difference between what you get and the amount of settlement is a profit margin for the company. Be careful when weighing your options. Is the difference worth getting your money today instead of in 5 or 10 years? If the answer is yes, then you should sell your structured settlement.

One other thing to consider is inflation. A one hundred thousand dollars in 1980 is not a one hundred thousand dollars in 2010 or in 2030. Money loses its value over time and the longer you wait, the more value you will lose. All these factors are important when deciding to sell your structured settlement.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.

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