At times life throws surprises on your way such as unexpected expenses. At various times, there are plans or opportunities where you find your prevailing financial condition incapable of accommodation with the same. For people owning structured settlement annuity, there is a choice of selling few or all of them so as to enjoy access to a lump sum amount of liquid cash to meet the current needs. In short, to meet your unforeseen expenses when your financial condition is not stable, you can sell structured settlement and deal the situation.
Purpose of selling structured settlements
The main purpose to sell structured settlement is to offer scheduled payments as a mode of compensation for any personal injury that has been sustained. If you are the assignee or plaintiff in the settlement, being the recipient of this type of periodic payments shall pave way for the income stream available presently in almost all states. These settlements are safe as they are prepared keeping into consideration all legal norms. With consideration to cashing on your structured settlement as lump sum vs. schedules payment, it is mandatory to first understand that being a seller; you won’t be receiving the sum that seems to be the face value. People usually take into consideration the investment in totality but what they must consider is NPV or Net Present Value.
Beware! Your Request May Be Turned Down If Found Inappropriate
When you set up a structured settlement, it is nothing but a series of the future payments working in a systematic way similar to that of amortizing mortgage. But before believing that you can cash in, you need to know that your case has to be presented before the judge so as to determine the authenticity of the request you made. A number of factors are taken in consideration in this context. If the reasons offered by you don’t match the criteria set before hand for letting one the right to sell their structured settlement, your request will be turned down. Thus ensure that when you are approaching with a request for the same, that is appropriate and sound enough for being approved.
On a whole, it cannot be left saying that indeed annuities are the best way of ensuring a regular flow of income when you are facing financial constraints. Hence it is recommended to make investments in structured settlements to enjoy its returns when in need.