News and Tips on structured settlement transfers.

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Is a Structured Settlement Annuity a Good Idea?

Most of the time during an injury settlement, the injured individual is simply not going to be able to see all of the money from a large settlement at once. The injured party and the insurance company who will be paying out the settlement for a fixed period. The payment terms for the settlement can vary. In some cases, they may last the entire lifetime of the claimant. They payments from a structured settlement annuity aim toward providing long-term financial care for the claimant. This means that it is very important to make sure that the annuity provider is reputable and has the proper credentials.

In some cases, the payments are monthly, and in other cases, the payments will be yearly. It all depends upon the terms of the agreement. It is generally going to be preferable to choose annuity payments rather than have the entire lump sum handed over all at once.

First, when someone receives a large sum of money all at once, he or she tends to overspend. Perhaps they’ve struggled at other points in their life and finally have the money to be able to buy the things they’ve wanted. This is an easy road to disaster. One of the other big reasons to choose a structured settlement annuity with payments is that with the lump sum, the claimant will not receive the full amount. It is possible to sell future annuity payments, but you will not always receive what they are worth. It is possible to find some quality companies that will offer to buy the annuity payments though.

Those who are in a position to receive a structured settlement annuity should always take the time to talk with a qualified attorney about the pros and cons. The attorney will be able to guide them through the settlement process to ensure that they are making the best decisions along every step of the way.

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