Sell Annuity Payments for Peace of Mind, Part I
- This was posted on August 26, 2009
When it comes to money sometimes a little peace of mind is all you need. This, of course, has not been terribly forthcoming as of late as the economy has put most of us in a consistent state of discomfort. The most that any of us can do is to go along with the flow as best that we can and hope that we see brighter days ahead very soon.
What can certainly add to our level of discomfort is not having cash at our disposal – liquid assets that can speak to our immediate financial needs. For those of us lucky enough to have savings, knowing that this money is there should we need it right away is incredibly comforting especially in this economy where people have lost jobs that they would have once considered stable. You just never know what’s going to happen and being as prepared as possible can help to ease some of the anxiety associated with these troubling times.
This is one of the reasons that many people are choosing to sell annuity payments from their structured settlement. When money is awarded in a personal injury case often it is deposited into an annuity to be distributed through payments. This is known as a structured settlement. The recipient of a structured settlement receives those payments on a scheduled basis. But they also have the option in most cases to sell annuity payments – “trading in” future payments for present day cash.
The way in which this works is by sellers working with a buyer of structured settlement annuity – a purchasing company that specializes in such financial transactions. The seller identifies the number of annuity payments that they wish to sell and the buyer gives them cash up front for those payments. The buyer then has ownership of those payments when they come due. In the next post we’ll talk about some of the benefits of selling payments.
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