Your Structured Settlements - When You Should Sell Them

But the living situations can change suddenly and a person will need a big amount of cash money from his structured settlements

. It is the time to think the selling of the settlements.

1. The Usual Funding.

The structured settlements are usually funded by the annuities, which are set up to protect the recipient of lottery winnings, legal awards or insurance settlements.

2. To Whom The Structured Settlements Are Targeted?

The ideal target groups are minors, injury victims and other disabled people, who cannot manage their finances and who will get a secure financial future. These people usually see, that the structured settlements are better solutions for them, than the one lump sum system.

However, the parties can agree about a future lump sum payment, if needed.

3. The Payment System Follows The Needs Of The Recipient.

The basic system is, that the payments happen periodically during the next ten years, for instance a fixed sum of money every month. The income from settlements is tax free and the interest is not paid.

4. Why To Sell The Plan?

The main reason is, that the plan is fixed but the living situations may change and the recipient will need cash money. These new sudden situations are the will to buy a new home, to pay for the education of a child and the increased medical expenses, for instance.

5. What About The Future Inflation?

One serious reason to sell the structured settlement plan is, that a recipient sees the upcoming inflation so big, that it will decrease the value of the plan. So he thinks, that it is better to sell away the whole thing. He thinks, that when he has the lump sum, he can invest it with the better profit.

If you need cash money and you want to sell the structured settlement plan, you can also think to sell only a part of it. Now you still preserve your future financial security, but will get the needed cash money.

When you end up to sell your plan, it is very important to select the buyer, who has a good reputation and who has been in the business for many years. Otherwise, it is possible, that you will lose both the plan and the money. It is recommended, that you will check the potential buyers with The Better Business Bureau, because they know the scam companies in the industry.

by: Juhani Tontti

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