Who, why and how to get cash from future payments
Insurance companies issue large settlements for claims. Some of these are for auto accidents, wrongful death, malpractice (legal or medical) and workman's compensation. When settling these claims, the money awarded to a plaintiff is often given in a structured settlement annuity. This means the plaintiff receives the money in monthly, quarterly or annual payments.
A financial professional can tell you how to cash in that structured settlement annuity and receive your money in one lump sum. There are many reasons for doing this and here are a few examples:
* If you find out you have cancer or another serious illness, the money can be used to help pay medical bills. Catastrophic illness is an unexpected expense and while your health insurance pays a good portion of the costs, you still find yourself unable to pay the remaining costs. In addition, you may be out of work because of treatments and recovery and you may not be paid for this time. Cashing in a structured settlement annuity can help you avoid bankruptcy.
* You can send your son or daughter to college without breaking the bank or perhaps you have dreamed of returning to school to complete your degree. Tuitions rates have skyrocketed in the past few years while the number of loans and scholarship programs has declined. You need money to pay for the costs.
* Your can a buy a new car and stop throwing money down the drain to repair your old one. With the money from your structured settlement annuity, you may even be able to pay cash for it and avoid monthly payments and high interest rates.
* You can purchase the home you have always wanted. You may be able to make a sizable enough down payment to lower your monthly payments or interest rates.
* You can be your own boss and buy a business.
Many financial professionals offer free quotes either by telephone or online. When looking for a financial professional to handle you structured settlement annuity, you should know a few things:
* What are the laws in my state regarding the sale of a structured settlement annuity? Laws regarding the sale of a structured sale annuity vary from state to state and your financial professional should be familiar with these laws.
* How much money do I need? When you cash in your structured settlement annuity, you can chose to receive it all in one lump sum or you can choose only to cash in only a few payments. It is up to you to determine how much money you need to meet your financial needs.
* When will I get my money? There are many variables that affect payments such as state laws, court approval and company polices. You can receive your money any time between a few weeks or up to 90 days.
* How will this affect my taxes? Your financial professional should be able to advise you on how this will affect your tax return.
