subject: Structured Settlements [print this page] There are many reasons why an individual get to have structured settlements in their financial portfolio. Among the most common reasons are; insurance arrangement, personal injury claims, lottery winnings, inherited pensions and so much more. Along with these structured settlements are host of positive outcome on the person's financial status. The most basic advantage on this kind of financial arrangement is the stability that will be provided to the person. Consider the fact that a particular amount of money is given to you on a period of time. if the contract is for the duration of 10 years, then a specific amount of money is provided to you every month for the next ten years. Thus is the financial stability that goes with a structured settlement.
However, due to the recent economic lowdown, more and more individuals with structured settlements are looking into the prospect of selling their annuities to a structured settlement purchaser. The purchasing company will buy off the whole amount of the settlement claims and provide the claimant the lump sum of such coverage. The amount is discounted though, since buying off secured settlements is a business that needs to acquire the needed ROI. And purchasing company has to take the risk in buying off the settlement by giving the amount in whole to the claimant, that is why; a portion of the amount is then discounted.
Structured settlement is actually a logical financial arrangement; however, when the need arises, the claimant can then sell it off to a purchasing company. If the situation calls for emergency cash, then the individual has all the right to sell their structured settlements in exchange of a larger amount in whole. The only thing that a claimant must take into consideration is to spend the lump sum to a good use. For if selling the structured settlement is only for other worldly reasons, then the act of selling the settlement will then be such an imprudent course of action.
