An In-Depth Look at Selling Your Structured Settlement: Pros and Cons of Trading in Your Stream of Income for a Lump Sum.

A structured settlement is a type of financial arrangement where an individual receives payments over a set period of time as opposed to a lump sum. Structured settlements are often used to settle legal claims in serious injury and wrongful death cases, and are also used in annuity payments, lottery winnings and types of compensation. When deciding to sell your structured settlement, it’s important to weigh the pros and cons as it could be a life-altering decision.

The Pros

The primary benefit to selling your structured settlement is gaining access to a significant amount of money all at once. When needing to pay for a large expense, such as a house or college tuition, selling your structured settlement is the quickest way to receive the desired amount of money. Furthermore, if the selling individual already has their own spending plan in mind, selling a structured settlement eliminates the guesswork of budgeting for all the payments of the settlement.

The Cons

When selling a structured settlement, individuals often receive a lot less than the full amount. Companies that buy structured settlement payments will generally purchase the settlement at a discounted rate, with the amount of money received being a fraction of the total settlement. This means that if there are multiple needs the settlement had to satisfy, selling it for a lump sum might not be the best option.

Furthermore, should you decide to keep the structured settlement, there’s the benefit of peace of mind when you have regular payments coming in over the duration of time. Selling a structured settlement for a lump sum could disrupt this steady stream of income if the individual who sells it isn’t fiscally responsible with the money, creating the possibility of financial hardship.

Ultimately, when deciding to sell a structured settlement, the determining factor should be the individual’s financial circumstances. Before making any decision, it’s important to research and understand all the potential consequences. A financial advisor and attorney experienced in structured settlements can be hired to provide guidance and make sure the process goes smoothly and legally.

Exploring the Benefits of Selling Structured Settlement Payments to Companies Who Buy Them: A Case Study

Exploring the Benefits of Selling Your Structured Settlement: Why You Should Consider the Option.