When insurance settlements happen they help alleviate financial burdens by taking care of immediate expenses like hospitals bills etc. But more often than not, settlement money is not dispersed as a lump sum. It is in fact given in small monthly installments. That’s when the real problem arises. Even though the claimant is happy with what he is supposed to get, the wait sometimes gets too long.
It is inconvenient to most people to have to wait for money to come in, so claimants usually have to look for better ways to get the money. That’s where selling off your ‘Structured Insurance Settlement Payment’ comes into play. The need for money could be anything from financing a business to buying property to paying off bills to just paying for a holiday. There are companies willing to pay you a lump sum in exchange for your structured payment. It might take care of your immediate financial problems, but be sure to remember that you are actually losing out on money in the process. The lump sum will be very less compared to what you are supposed to get over a period of time. So, it is important to remember some things before you sell your structured payment.
The advantages of selling must be weighed carefully first. If your need for immediate cash is greater than losing some of the money by selling then go ahead and do it. But if the “need” behind selling is just to have a gala time or go on a luxury cruise or buy something, then hold it! Do you actually need to put yourself in this situation? People without financial troubles can sell the payments and spend it as and when they like it but if you have no steady income or make very little, then these structures payments can help you a long way. The point is to assess your situation carefully before taking the step forward.
One point that works in favor of selling the structures payment is that over a period of time inflation will make them worth less than what they look now. Whereas a lump sum can even be invested in someplace which might give you more return over a period of time. Though, there is also the option of selling part of your structured insurance payment rather than the whole thing. This gives you cash in hand and also some security of income for the future.
Once you have decided to sell your structured insurance payment settlement, make sure to check out the legal procedures in your state regarding the issue. It is imperative that you follow the legal route to avoid getting into trouble later. Some states like Texas, Kentucky, Virginia and Illinois apply a lot of restrictions on sellers.
If proper care is taken, selling can be quite easy and profitable. Be sure to weigh all your options before you jump into the selling cauldron to ensure that you and your sale are safe and legal, and also in your best economic interest.
