You Choose to Sell Annuity Payments
- This was posted on September 28, 2009
When it comes to your money you want to drive the bus. And why shouldn’t you want to be in control? This is the money that you work hard for each and every day and you should be the one who decides what is done with it – how you spend, how you save it, and ultimately what it will mean in terms of your present day cash flow and financial security. So when it comes to a structured settlement it’s not surprising that many people feel as though the decisions have been made for them.
The way in which structured settlements work is this: money is awarded to a claimant in a personal injury case. But instead of that money being paid out all at once it is deposited into an annuity and the money is then distributed to the recipient through equal and scheduled payments. The annuity is held by a third party and is not owned by the payment recipient. Meaning the recipient does not own the structured settlement as a whole. But they do own the payments.
Those who receive a structured settlement surely don’t scoff at the extra money that comes to them through payments. But they may feel as though it has been budgeted for them; even though the money was given to them. But there is a choice. Structured settlement recipients have the option to sell annuity payments and trade their payments in for cash all at once.
When you sell annuity payments you identify the number of payments that you want to sell and work with a buyer of structured settlement annuity who brokers the deal. The seller determines the amount of money they want and sells the number of annuity payments that accrues that amount. The buyer then gives the seller cash and then receives ownership of those payments to come. To sell annuity payments is to make a choice; and when it comes to our finances, choice is important.
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