Why Selling Structured Settlement Payments Might Be The Choice For You
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by: heal3r
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Structured settlements are not flexible when life circumstances change and there are new demands on you financially. It is your money it just makes sense that you would be able to make use of it when, where, and how you choose.
Selling Your Structured Settlement Puts You in Charge
You may have a regular stream of income from the settlement annuity payments, but you probably do not have control of the funds or immediate access to the full amount of your award. The structured settlement factoring industry exists because insurance companies refused to offer that option to their annuitants.
The fact the settlement payments are not taxed certainly complicates the issue. The insurance company gets a tax break for creating the settlement. The attorneys get all their money up front, the settlement brokers are paid, yet you are the whole reason for the annuity and you have to wait. There are plenty of circumstances where that makes sense, and even more where it seems a little unfair.
Having full control of your money makes more sense and factoring companies provide that service albeit at a cost. The price of getting tomorrows dollars today, as well as the court expenses, processing fees, and of course the profit the companies need to make. Can you imagine how much a company like J.G. Wentworth needs to charge to pay for all those commercials?
Consider Selling Your Structured Settlement Payments
There is no right or wrong time or reason to sell your annuity payments. There is only the determination of what is in your best interest. While this should be your decision, the courts, insurance companies and even the factoring companies have a say in the matter. Most importantly is the judge’s opinion as the judge ultimately approves or denies the transaction in court. Factoring companies like Prosperity Partners take that into consideration when working with clients.
People decide to access cash by having Prosperity Partners buy their settlement payments for many reasons. They may
• Have pressing financial obligations
• Have things they want to do in life—buy or remodel a home, pay for college or education, vacation
• Prefer to invest their money themselves to enjoy larger returns
• Be concerned that their annuity will outlive them
Ultimately, cashing in your future payments for a lump sum now has a price, so consider carefully what you will gain versus what it will cost you when you are considering factoring your payments
Evaluate Your Options Without Obligation
It is smart to consider selling structured settlement payments, because the rates and costs change, and considering selling your payments is not the same as actually selling them.
It makes sense to know what your options are, even if you choose not to exercise them, or decide that a settlement sale is not right for you at this time.
About the Author
The PPI Team writes about the structured settlement factoring industry. Some of their writing can be found at their structured settlement blog.
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