Steps for cashing in structured settlement annuity payments
What if you won a new car on a game show, but you were told you would be receiving one piece of the car each month until the entire car was received? Although that scenario is unlikely, it is similar to how a structured settlement annuity works. You receive money but it is handed out to you in payments.
How is a structured settlement annuity awarded? First, a plaintiff files a lawsuit. The plaintiff and the insurance company may reach an agreement and award a settlement. However, the settlement will be awarded in several payments that may be monthly, quarterly or annually. The plaintiff may also win the lawsuit and a judge may order the award be distributed in payments rather in than a lump sum.
These monthly payments are good for people who want the security of money coming in each month. But most people want more control over their money. They want to make investments, buy a home or business or pay for a college education for themselves or their son or daughter. These are positive life changes that require extra money. They may have found a better return on other investments.
But not all life changes are positive. For example, receiving the monthly payments was a good addition to your income and has improved your quality of living. But you have been diagnosed with a catastrophic illness. You are facing medical bills, a loss of income due to being out of work for recovery or treatments and the anxiety of not knowing how you will survive financially.
Or perhaps your car is in need of repairs that will more than the value of the vehicle. You want to purchase a new car but you are faced with high payments and high interest rates on a long-term loan. You have to have a car to get to work, get the kids to school and run errands.
Cashing in a structured settlement annuity is a good idea for those who need cash. Many companies offer plans for cashing in structured settlement annuities. A good number of the companies have information online that can tell you about the advantages and disadvantages of cashing in your structured settlement annuity. The company may also offer a free online quote where you can find out the impact of cashing in your structured settlement annuity. Depending on your situation, you may want to cash in all of your structured settlement annuity or just a part of it.
A financial professional can guide you through the steps of selling your structured settlement annuity. There are many laws that govern the sale of a structured settlement annuity and the laws vary from state to state. The sale of a structured sale annuity requires court approval.
A financial professional can also tell you when to expect your money. There are many variables that can affect the payment including state laws, company policies and the amount of time it took to receive court approval.
Cashing in your structured settlement annuity gives you the freedom to spend your money how you want. A qualified financial professional can guide you in making this decision.
