Structured settlements are plans that regularly pay you a certain amount of money, typically every month, for a set period of time. That gives you long-term financial provision, but there are circumstances in which the monthly payments might not be enough. In those situations, you may want to cash in part or all of your settlement for a lump sum. Whilst this isn’t always the best route to go down, there are a number of advantages to opting for cash for structured settlements.
Why Sell Your Structured Settlement for Cash?
There are many situations where you might end up with a structured settlement. Perhaps you have just retired and are taking an annuity out on your pension. Perhaps you won a legal case due to injury some years ago and have been receiving regular payments to cover medical bills and other needs. Maybe you even won the lottery!
These structured settlements, as they are known, pay out a certain amount of money for a given period of time. In the case of a pension, the annuity is based on the pot of money you have saved over the course of your working life, and the payments will continue until you die. In the case of a lottery win, it may be a fixed amount of money that is divided up into 20 years’ worth of payments (240 months).
Either way, the sums of money involved can be quite considerable – easily hundreds of thousands or even millions of dollars. Yet on a month-to-month basis, the amounts may not be enough to cover your expenses. They may not take into account the need to buy equipment or medical procedures that you need. The money is there, and it’s yours, but you cannot access it at the time you need it. This can be frustrating, to say the least.