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Why You Should Sell Your Structured Settlement

Detailed Information and Guide Below

Why Sell Your Structured Settlement for Cash?

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.

Whats Involved in Selling Your Settlement for Cash?

Turning a structured settlement into a lump-sum cash payment isn’t something that you can do on a whim. There must be a good reason to access the money rather than accept the monthly payments. This must be demonstrable in court, since the decision will ultimately be made by a judge. Whilst it’s extremely easy to put the process into motion, then, you need to be prepared to provide evidence for why you need the money at this point, and why monthly payments won’t achieve those ends.

This is important, and the regulation around the area is part of the ways that consumers are protected. Unscrupulous companies could otherwise take advantage of people who wanted to cash in their settlements. It is a court-ordered process and is subject to strict rules and frameworks. (You cannot, for example, cash in a settlement because you want a holiday.) However, the regulations surrounding what constitutes good reason differs from state to state. It also varies depending on the kind of settlement – the court is likely to deal with a lottery win very differently to damages following a legal settlement, for example. Other factors such as your age, health and immediate circumstances may be taken into account, as may be the rating of the insurance company that makes your payments.

The good news is that the court process and the settlement buyer will take care of most of the administration and hard work for you, precisely because it takes place within this strict framework. Because of this, though, it is also likely you will have to wait at least 30 days before the process is complete, and possibly quite a lot longer – though this will, of course, depend on your situation.

What are the Advantages of Selling your Structured Settlement?

There are advantages to keeping structured settlements and advantages to selling them – in part or in full – in return for a lump sum. Whether you opt to stick with monthly payments, sell part of your settlement or take it all in a single payment will depend on your specific needs.

Advantages of cash for structured settlements:
• Lump sum instead of regular monthly installments
• You can cash out part or all of your settlement
• Greater flexibility and control over your future
• Opportunity to manage your own money
• Regulated and court-ordered process provides protection
• Most of the administration is done for you
• Easy to put into motion

Structured settlements are generally provided tax-free, assuming they have been set up properly. They will also give you an income for a long time to come. This may be highly beneficial, since if you are given a lump sum then you will need to manage your own finances to plan for the future (or pay someone else to do it). Therefore a structured settlement should give you long-term financial security.

However, there are downsides to structured settlements and good reasons you might want to cash in part or all of one for a lump sum. They may have the effect of trapping you in the scheme of monthly payments, when you have a need for a larger amount of money than you can afford (and the payments are all the income you have). Perhaps you want to pay off a debt, start a business or buy a home. It may be that none of these are possible with the monthly payments you currently receive.

Cashing in your structured settlement gives you flexibility to use your money in the way that suits you best. This may mean being able to plan better for the future – paying down debts, paying for education, funding your own company and independence, and more. You should also bear in mind that a fixed income now will not be worth the same in five or ten years, let alone twenty or thirty. Inflation will erode the value of the payments, and if you are relying on them to pay for your outgoings then you may find yourself squeezed. Cashing in part of your settlement to pay for big expenses up-front might help avoid this problem, giving you the best of both worlds. If you have to pay for your day-to-day outgoings by taking on new debt now, this may very well end up costing you more than you can afford in the long run. Contact us if you want more detailed information.

Client Testimonials

We have had the pleasure to work with some great companies.

I wanted to turn one of my legal settlements into immediate cash to help with my mothers hospital bills. Eagle Settlement made it Really easy and fast. They were always really helpful and I felt like they did the best possible job. I would just like to say Thanks!Matt Anderson
As newlyweds and moving to a new city, we needed cash to help with a Down Payment on our Dream Home. I would like to say Thank to EagleSettlement.com for making it quick, easy and hassle free. Would recommend you guys to any of my family or friends!Celia Jones

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