If you’ve been injured and another party is at fault, you may rightly decide to take legal action. Both parties may then decide on a structured settlement agreement, rather than a lump sum payout. These agreements can be complex and confusing, and if you decide to sell your structured settlement annuity, you may be overwhelmed with your options or not know the correct steps to take. Here are some common questions about structured settlements and annuities to help get you started:
- What are structured settlement annuities?
There are many types of annuities, which refer to insurance contracts that will provide payments over time instead of all at once. With a structured settlement annuity, an injured person receives regular payments over a long period of time. The length and payout periods for annuities can vary, but two of the most common are those that pay out over the course of 25 years, and those last until the person’s death.
- What are some benefits of structured settlement annuities?
One pro is that these agreements are tax-free. Another is that they can provide income for life for the recipients, while helping them manage their money responsibly.
- What are some negatives of these agreements?
One drawback is that the recipient never actually owns the agreement; that right belongs to the insurance company who provides payment. If the insurance company funding the agreement goes bankrupt, then the injured party may never receive the money they were promised. Another downside is that, while the purpose of an annuity is to cover a person’s income for their lifetime, depending on the settlement terms, the monthly payments may not make enough of a difference to improve that person’s life. This is often the case if that person is in a significant amount of debt or has a large number of medical bills to cover.
- Why might I want to sell my structured settlement?
Selling a structured settlement annuity can be beneficial for those who need to pay off student loans and credit card debt. If you sell your structured settlements, you could also make an investment in your future by attending college, buying a house or a car, starting your own business, or travelling around the world. Selling your settlement can allow you to do things you never thought possible with your budgetary concerns, and it will free you from feeling like you’re at the mercy of an insurance company. You can often live much more comfortably than if you were on a fixed income, and the payout will allow you access to a future you might not otherwise have.
- If I decide to sell, how long will it take to get my money?
Every case is different, but we always work with clients to ensure they receive their money as quickly as possible. The process of selling your settlement can take up to 90 days, given that it has to be legally finalized by the court system. However, we can work with you to secure an advance in order for you to meet financial obligations.
If you have a structured settlement agreement and want to make a substantial investment in your future, you should consider selling your annuity. Contact us today to find out your options and see how easy it is to receive the money you deserve.