When you are thinking about selling structured settlement payments for cash today instead of over time, there are a few items you should consider first to ensure you are making a well informed decision. The most obvious and the one that causes the most concern in the process is that you will not receive upfront was the payments equal over time. When you decide selling structured settlement payments, you should know that the lump sum payment will be much less then the aggregate of the total settlement because the value of the settlement is less than the payments over time. Although the payment now is less than the payments over time, the cash may be utilized to pay debt, for medical bills, for a big purchase, to pay for school, or any other need you may have now. The amount your receive today is going to be less than the face value since the structured settlement purchaser much account for opportunity loss, inflation along with the cost indicative of the transaction. Understanding these factors is important in making a decision to sell structured settlement payments now, however current needs may be greater than the lesser amount then the aggregate.
Selling Structured Settlement – Know your options
It is important to work with a company that has the experience and knowledge to provide you all the options available to you. Selling the entire structured settlement is rarely in the best interest of any annuitant regardless of what other companies may advise. The consideration should be to cover the current needs, whether that is bills, car, a home or any other major purchase, with the minimum amount of payments as possible. The best situation is to use a small portion of the future structured settlement and keep a large portion of the future payments in tact. As in making any major purchase it is very important to work with a professional who has the experience to fit your needs with your annuity payments. The decision of selling annuity payments needs to made with a complete understanding how the loss of future payments will affect your future well being.
Selling Structured Settlement – What do I need to Know about the process?
Fortunately for you, in 2002 certain rules, statutes, went into place that provide specific guidelines for the transfer of structured settlement payments to another party in exchange for cash today. These rules were adopted mostly in a standard form, however some states added additional provisions. To know what requirements affect you in your particular state is important to speak with a structured settlement company who has the experience a knowledge to navigate these rules. In some rare situations insurance companies may restrict the sale of your future structured settlement payments or some other rare situations the annuity provider may be in poor financial health and is therefore to high a risk to purchase payments. So when you are considering, “Should I be selling structured settlement payments?” make sure to seek out experienced structured settlement purchasers who can guide you through these issues and get you the most for your future annuity payments
Additional information you need to know is that certain rules in each state require that in order to transfer the payments to another party you must first go in front of a judge who will determine that the transaction is indeed in your best interest. Years ago transactions were being completed that greatly benefited the structured settlement company to the detriment of the annuitant. The condition of having to go in front of a judge ensures that a third party, the judge, will review selling structured settlement payments transactions to ensure that it is suitable or as the statute requires, in your best interest. Make sure to consult an expert which may be an attorney or CPA in this matter to advice you better on the current legislation.
Contact us and receive the best possible experience and most cash by calling one of our representatives at 1-404-939-0029 or visit www.mainstreetsettlementfunding.com.