Selling structured settlement is an option for having instant access to a large sum. Structured settlements, by its inherent design and purpose, are intended to serve as a long term income provider. Basically, it is a system of paying insurance claim amount and lottery prize distribution in regular installments to an eligible person, instead of a lump sum. It is meant to provide the security of fixed and known income to people. Structured settlement is sold when a person faces a financial difficulty, to overcome which he or she needs a large lump sum of money. The question here is about the advantages and disadvantages of this practice. If you are desperate to get money and there are no other options, you must go ahead and sell structured settlement. Feel free to fill the forms here to get a free quote of your settlement value.
Selling Structured Settlement: Boon Or Bane?
Selling structured settlement is often compared to cutting the very branch one is sitting on, especially by the people who belong to the traditional school of money management. But in reality, this is too complex an issue to be bracketed by sweeping generalization. The basic thing that makes a serious difference about the decision is the financial characteristics of the person. It is not ideal to sell your structured settlement for financially helping somebody else. It should not be done however close the other person is, be it son, daughter, wife, brother, or sister. Always remember the wisdom vignette of all grandmothers: “the money is yours only when you have control of it”.
At the same time, if you have found yourself in a tough situation and you need a large amount to overcome it, it is better to sell structured settlement. Even if you take loans and obtain credit, you are likely to find it difficult to repay the amount. So, selling structured settlement is a good option, as it does not involve as much future liability as a loan does.
A majority of companies that purchase structured settlement actually provide several options for payment. They will allow the seller to take half of the insurance amount as lump sum and other half as regular installment amounts as previously. This is a good option for those who want to eat the cake and cut it too. But you must understand that when selling structured settlement, you will not get the full settlement amount. The companies weigh many factors like inflation and interest before fixing a value. One can easily get the value of one’s structured settlement by filling the forms here.
