- This was posted on September 18, 2008

It would be very nice to get a check in the mail every month or every couple of months, wouldn’t it? Surely most of us could very easily figure out what to do with some extra cash flow. Those who receive structured settlements have this very scenario; they have been awarded money through an out of court settlement in a personal injury or wrongful death case. Instead of getting all their money at once, however, they are being sent payments from an annuity. This is certainly helpful for many people and they learn to manage their payments well and make some financial headway. But it doesn’t always happen like that.

In some cases, there may be structured settlement recipients who are facing a particular circumstance in which the need for a lump sum of money is much greater than the need for payments. And in such cases these recipients may choose to sell structured settlements.

This phrase, however, is misleading. To sell structured settlements does not necessarily mean to sell the entirety of the settlement amount. Those who choose to get cash for structured settlements sell annuity payments. And they don’t need to sell all of them.

In the case of a sale, the person who is currently receiving the structured settlement will work with a buyer of structured settlement annuity – a reputable company that has experience with such transactions. The seller determines the number of upcoming annuity payments they need to sell in order to garner the amount of cash that they need. They then turn over the ownership for that exact number of payments to the buyer of structured settlement annuity. The buyer gives the seller the cash today and the buyer receives those annuity payments in the future.

The decision to sell annuity payments is often done if the seller is facing a financial crisis – impending foreclosure, significant debt, medical expenses and so forth. With cash for structured settlements they can tackle their financial responsibilities.

Popularity: 31% [?]

Share This