- This was posted on September 25, 2008

These are confusing times to say the least. There are very few of us out there that can say for certain that we are resting on comfortable financial footing. For most of us every month is a struggle as we try to figure out how best to meet all of our family’s basic needs and still live a life with room for fun and “extras.” There seems to be less and less room for such luxuries, however, as the economy takes a beating, prices go up, and many of us find ourselves even questioning the future security of our jobs.

This may be the time for those who are currently receiving structured settlement payments to consider the decision to sell annuity payments; a decision that may not be so easy to make in light of the current economic state.

Structured settlement payments are made to those who receive money as a part of an out of court settlement in what is typically a personal injury case. This kind of settlement decision is an alternative to paying the claimant all the money at once; instead they are given the money through a payment schedule that is made from an annuity that is purchased by those who are ultimately made financially responsible.

The decision to sell annuity payments is not one that many structured settlement recipients consider to be within their right to do. But the fact is that the payments are the recipient’s to sell if they so choose. They do not own the annuity but they own the payments that are made from the annuity. Some claimants are perfectly content to continue to receive their payments on a monthly basis or however the schedule is set up; but others, especially in the face of current financial struggle, may decide to sell annuity payments for cash on hand.

In the next post, we’ll continue to talk about the decision to sell annuity payments.

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