What You Should Do Immediately After Getting Cash for Structured Settlements

getting cash for structured settlements

When you find out that you’ll be getting cash for structured settlements, your mind may quickly wander to the many ways you could spend all of that money: You could buy a fancy new car, buy your significant other something pretty, or go on an expensive cruise!

But then, reality sets in. You have bills to pay and a life to lead. If you’re the recipient of a substantial structured settlement agreement, here are the first practical steps you should take to manage your new financial situation.

  1. Understand how it will impact your taxes.
    Boring? Yes. Important? Incredibly so. Depending on the nature of your case settlement, your reward could be subject to income taxes. The first thing you should do is hire an accountant to explain your options.
  2. Pay off your debt.
    Whether you have medical bills or school loans, the best way to provide a better financial future for yourself is to pay off that debt as quickly as you can to avoid accruing interest. An average household spends $6,658 on interest payments every year, so it’s worth your while to shave off debt with that money burning a hole in your pocket.
  3. Invest.
    There’s the old saying, “You have to spend money to make money.” Getting cash for structured settlements could be your ticket to a whole new future, so long as you know how to do it. Invest in education. Invest in launching a new company. Be smart about where and how you spend your money.
  4. Donate.
    Making a donation to a charity is a way to give back to the community and spread your newfound wealth. Remember that for every annuity settlement won, there are plenty of other people who weren’t as fortunate. Do what you can to help others in need and feel free to give yourself a pat on the back while doing it!

If you manage your money wisely, there will be plenty of opportunities throughout your life to treat yourself to small indulgences. Rather than spending all of your settlement money the moment it hits your bank account, think twice about how that cash can be spent for something bigger or better than a wild night on the town — something like your own future.

What to Do When You Need to Get Settlement Money Now

get settlement money now

If you’re the recipient of a structured settlement annuity, chances are you didn’t get there by choice. Structured settlement agreements are often the end result of a long, drawn-out, and even painful process. Perhaps you were involved in a car accident, a workplace injury, or a class action lawsuit. No matter the cause, one thing is for sure: moving forward with your life is the most important step in recovery.

However, that’s not always easy after a major trauma or an incident that puts you out of work for an extended period of time. The end of a long legal process does not mean the end of your stress. After your lawyer collects her fee and moves on to the next client, you may be stuck with a mountain of medical bills to pay. You might need to find ways to reduce debt after using up your credit to cover upfront expenses. You might need to start a new career altogether — in which case, you might be thinking about going back to school.

Any of these expenses might be more manageable, you might think, if you were simply able to get settlement money now, instead of having to wait for the next annuity paycheck. At the end of 2013, for example, there were an estimated 34.8 million deferred annuity contracts in circulation worth a combined $2.58 trillion. That’s a lot of money that could be helping individuals put their lives back together.

Luckily, there’s good news. You can “sell” your structured settlement agreement to a trustworthy financial institution in order to get settlement money now.

It’s simple: The institution will take on your structured payments, and in return, they’ll give you a lump sum up front so that you can spend your money any way you choose. You can also choose to sell only a portion of your settlement. This way, you can get the amount of money you need to cover your expenses, while still receiving the steady support of an annuity check in the mail.

If you’re ready to get settlement money now, contact us at 123 Lump Sum today. One of our experienced representatives can walk you through the process to find out if selling your structured settlement might be helpful to get you back on your feet.

Structured Settlement Annuity FAQs

annuityIf 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.

Structured Settlement Annuity Benefits and Drawbacks

structured settlement annuityImagine that you’re offered a choice. Sitting across the table from you are two piles of money. One is very big, and you can take it all home with you today. The second pile is pretty small, but you can come back next month to get the same amount — and every month thereafter for as long as you want. Which deal do you take?

Many people who receive lottery winnings or are granted settlement money after an injury or accident are faced with this exact scenario. Most people would instinctively grab for the larger pile of cash. Why wait around when you can use that lump sum to reduce debt or buy a new car?

Unfortunately, structured settlements, annuity settlements, and lump sum payouts are not quite that straightforward. There are certain strings attached to each kind of deal that every claimant should know before making their final decision.

In fact, structured settlement annuity benefits often outweigh their disadvantages. Here are some of the ways that taking that smaller pile of cash might be smarter in the long run:

  • It’s tax exempt. In most cases, the money you receive from a structured settlement or annuity plan won’t be included as taxable income. That means more of your earnings stay right in your pocket.
  • It keeps you honest. Many people don’t know how to budget a sudden windfall of cash in a way that’s sustainable. Statistics suggest that 25-30% of accident victims use up all of their settlement funds within two months of recovery, and 90% exhaust the money within five years. If you’ve suffered an accident that prevents you from working, how will you survive financially if your dry up all of your funds too quickly? A structured settlement plan ensures long-term security and a steady stream of income.
  • You always have the option to sell. Structured settlement annuity benefits are nice, but sometimes you really doneed a chunk of cash to pay for unanticipated medical expenses, to put a down payment on a house, or to send a kid off to college, for example. You can sell all or part of your structured settlement at any point in its duration to a financial institution for a lump sum payout. This gives you the flexibility to use your money as you see fit, exactly when you need it.

So which pile of cash should you take? The answer is ultimately up to you. The structured settlement annuity benefits might be appealing, but for some people — especially minors — taking the lump sum to invest the money yourself can prove more rewarding over time. Consult with a lawyer, financial planner, or certified accountant to weigh your options and decide which deal is right for you.

3 Easy Ways to Reduce Your Debt

reduce debtIf you’ve found yourself in debt, you certainly aren’t alone. Nearly one in five Americans from ages 18 to 24 feel they are in debt hardship. Dealing with financial challenges can be particularly stressful and overwhelming, but there are simple things you can do to help reduce debt. Here are three ideas to get you started:

  1. Cut back on expenses and shop smartly
    The little changes you make can really add up. You could downgrade or eliminate your cable package in exchange for a popular (and less expensive) streaming service. Use cash-back services and coupons when doing your shopping. Skip the extras when out at a restaurant, and be sure you know the difference between a necessity and a desire. Even programming your thermostat and unplugging appliances can help with your energy bills every month. All of these saving strategies mean that you’ll be able to make more progress in paying off your debt every month.
  2. Save loose change
    You probably don’t give a second thought to the coins in your pocket or wallet, but you’d be surprised how much you could actually have in your piggy bank! Saving your spare change in a jar seems like an antiquated idea, but it’s a great way to save without feeling too many of the effects in your daily life. At the end of the year, you can take that change to the bank and put it towards your debt; it may not seem like much, overall, but that’s money that you probably didn’t even realize you were saving!
  3. Sell your annuity
    If you’re the recipient of an annuity, you may think your only option is to wait for your yearly check. However, you can sell your annuity and receive a cash payout. In the United States, around 35% of the population said they had trouble paying their bills or were stuck paying off medical debts in 2014, and outstanding student loan debt increased from $1.21 trillion to $1.3 trillion in one year, from 2014-2015. If you are struggling to pay medical bills, student loan debts, or credit card payments, selling your annuity is a great option to help relieve your financial burden.

By making minor adjustments and selling your annuity, you can easily reduce debt in your life. Contact us today to find out how you can quickly get cash for an annuity.

How Long Does it Take to Receive a Settlement Check?

how to get money from a settlement

Congratulations! Your personal injury case has been settled and you are awaiting your award. But what’s next? You might be wondering how to collect your settlement or how to get money from a settlement now.

Unfortunately, it’s not always a quick process. There are several factors that will affect your payout as well as several steps that must be completed before you can get paid.

The Release Form
The first step in receiving your check is to sign a release form that sets forth the settlement terms. The release form will usually state that you will not pursue any further payments from the defendant for the specific incident at hand.

The Internal Process
Some states have established deadlines by which the defendant must provide settlement funds after receiving the release form. Some states are even permitted to charge interest on the funds to ensure that there is a disincentive for the defendant to delay the payment.

Still, settlements do experience delays. For instance, attorneys may have disagreements regarding the terms of the release form, causing a delay in the creation of the form. The defendant’s insurance company may also cause a delay because of its internal process protocols.

Structured Settlements
If you have been awarded a structured settlement rather than a lump sum, it will naturally take longer for you to receive the total amount owed to you. Structured settlements are often used by courts in the following cases:

  • Severe personal injury
  • Workers compensation
  • Wrongful death

Oftentimes, structured settlements are ideal for plaintiffs because they can provide a lifetime of financial security. The money is protected from taxes, market fluctuations, recessions, and a myriad of other risks typically associated with investments. Household income has grown by 26% in the past 12 years, yet the cost of living has gone up 29% in that same time period. In other words, receiving a steady income from a structured settlement can provide stability in an ever-changing economy.

However, life happens and your needs can change in an instant. When this happens, you may want to access your money immediately.

How to Get Money From a Settlement Now
You have the right to sell your structured settlements. If you are in a financial crisis, you have the ability to use a specialty finance company like 123 Lump Sum as a direct funding source for structured settlements.

Call 123 Lump Sum today to get cash for your structured settlement and stop worrying about your finances.

When a Structured Settlement Annuity Hurts More Than It Helps

structured settlement annuityMany times, civil lawsuits never even make it to court. That’s because in the vast majority of civil cases both parties eventually accept a structured settlement agreement that pays the defendants enough money to recoup their losses. Whether your case was the result of an accident, medical malpractice, insurance dispute, or another type of liability claim, your compensation should be all about helping you get better and move forward with your life.

It’s very common for awards from cases like these to be distributed through a structured settlement annuity, in which case you will receive small, recurring sums of money over a long period of time — sometimes as long as 20 years or more. This is a great way to ensure a steady flow of income if you’re otherwise unable to work or provide for your household after an incident.

However, there are times when those small paychecks may feel more like a burden than a blessing. Under certain circumstances, it could be beneficial to get settlement money now, rather than having to wait for that next check to arrive.

Do these frustrating hypotheticals sound all too familiar? Then it’s time to consider whether or not to sell annuity settlements.

But how do you know if it’s the right decision?

You have medical bills to pay. If you received your structured settlement annuity from an accident or injury case, chances are you still have a long road of recovery ahead of you. Pending and overdue medical bills aren’t just stressful; they can actually hurt your credit score.

As many as 20% of credit reports are damaged by outstanding medical expenses, and in turn, the interest acquired on those bills can add up, too. The average American household pays $950 in interest alone every year, an expense that could easily be eradicated by simply having the cash for structured settlement payments upfront.

You’re swimming in debt. Most people carry some amount of debt throughout their lives, but there’s debt, and then there’s debt.

There were an average 3,422 bankruptcy filings per day in February 2015. This is a particularly cruel fate when you know you have a settlement amount waiting to be delivered to you in slow increments over time. If you’re looking for ways to reduce debt, you might want to think about selling your annuity to a financial institution for a lump sum payout.

You’re ready to start over. Moving on after a traumatic injury or stressful lawsuit is difficult, but the money you receive is supposed to serve as a way forward. Whether you’re looking to buy a home, start a business, or move to a new city for a fresh start, a safety net of cash from your settlement can be the security you need to take the next step.

If any of these situations sound familiar, it may be time to think about selling your structured settlement annuity. Talk with 123LumpSum toll free at 1-800-397-6721 today to learn about how you can turn in those small checks for a lump sum to get you on your feet again.

Pros and Cons: Structured Settlement Agreements

structured settlement agreementWhen it comes time to receive just compensation from your lawsuit, many people are presented with two options: a structured settlement agreement or a lump sum payment. With the first one, you receive your money in small increments over a long period of time. With the second, you get all of your money up front.

Every circumstance is unique, and your decision will ultimately depend on your situation and needs. Generally, there are a number of advantages and disadvantages to a structured settlement agreement that you should consider and discuss with your attorney and accountant before making the final call.

  • Pro: In the end, you usually get more money out of a structured settlement annuity than a lump sum payment.
    Because of taxes, interest, and dispensation periods that can take years to complete, you usually end up with more money from a structured settlement payment than you would if you were to opt for a cash-up-front compensation.
  • Con: That money takes longer to get to you.
    Of course, waiting for annuity payments means you might not have the money you need right away. This is especially important for people with medical bills to pay as a result of their case; overdue expenses can damage credit reports, as is already true of 20% of the population.
  • Pro: Annuity settlements provide future security.
    Some people can’t stand money that burns a hole in their pockets. Receiving all of your award up-front may tempt people to spend recklessly; some 25 to 30% of accident victims report using up all of their judgement funds within two months of recovery, while 90% are out of money within five years. A structured settlement agreement forces you to budget that money so that it can last for future medical expenses or financial security.
  • Con: You may not be getting the most out of that money.
    If you receive all of your money up front, you can create opportunities for investing your money. In the end, that may create a bigger pay-off than an annuity. People can use that money to get out of credit card debt, for example, which 70% of Americans say bears a greater stigma than any other kind of debt.

No matter what you decide, the good news is that it’s not necessarily written in stone. Even if you opt for a structured settlement payment plan, you can always sell your structured settlements to a financial institution — either partially or fully — to get a bulk sum of money to cover any emergency expenses.

Understand your options and make the best decision by consulting with your attorney.

Tired of Small Structured Settlement Payment Plans? There’s Another Way

structured settlement payment

Structured settlement payments are common in instances of personal injury or product liability, when companies agree to compensate claimants with a nice sum of money, usually in order to avoid a long and lengthy court process.

While you may have been promised a lot of money for your injuries or damages, chances are you haven’t actually seen much of it yet. That’s because structured settlement payments are almost always doled out in small increments over a long period of time instead of all at once.

In the end, this long, drawn-out process will help get you all the money you deserve while avoiding nasty tax issues. However, it’s simply not a feasible solution for everyone — perhaps especially personal injury victims who may have high medical bills to pay. Statistics from the insurance industry indicate that some 25 – 30% of all accident victims wind up using all of their case funds within two months of recovery, while 90% use up that money within just five years. Moreover, outstanding medical bills can be a serious financial burden — approximately 20% of all credit card reports are damaged by overdue healthcare expenses.

The good news is that there is a way to get cash for your structured settlement up front. You can sell your structured settlement to a financial institution to get settlement money now.

Selling a structured settlement simply requires some paperwork and a sign-off from a legal judge. You essentially forfeit all of those small, regular checks in exchange for one lump sum right off the bat. The trade-off is that your overall earnings will likely be less than if you waited the 20 or 30 years to see your annuity through — however, there’s no shortage of ways to invest your money now to see that it grows more through the years.

As of 2013, there were some 34.8 million deferred annuity or structured settlement payment plans across the country that, when combined, totaled more than $2.58 trillion. If part of that money is yours, you don’t necessarily have to wait years or decades to get your hands on it. Speak with an annuity seller today to learn more about your options.

Paying Off Your Debt Fast: Top Tricks

paying off your debt fastDebt is a major problem in the U.S. today. Throughout every single household, adults owe an average $11,244 in student loans, $8,163 on car payments, and $70,322 in mortgage payments. Try as you might, paying off your debt fast simply isn’t a feasible solution for the 26% of Americans who admit having trouble making their monthly bill payments on time.

But if you’re the recipient of an annuity or structured settlement payment, there’s a better way. Instead of waiting for your payments to trickle in over the years, or even over the decades, you can sell your annuity or structured settlement agreement to get cash now.

Many people don’t realize that selling your annuity is even an option, let alone the benefits it can have for your financial situation. While the comfortable security of that monthly check might help you pay your bills, it also prolongs your debt. The average household pays $6,658 in interest each year — expenses that could be wiped out quickly when you get settlement money now and can start paying off your debt fast.

The process is simple, and you don’t necessarily have to sell your entire structured settlement at once in order to receive a lump sum payment in return.

First, talk with a financial institution authorized to purchase annuities or settlements. They’ll not only help guide you through the process but discuss your options and offer a quote.

Then, you’ll have to go through some paperwork, which is to be submitted to a judge in a court proceeding. They simply want to know how you’ll use your direct cash and that the sale of your annuity will not immediately jeopardize you or your family in any way.

Finally, you’ll walk away, cash in hand! It’s really that easy, especially when you have a professional helping hand along the way.

Think of what you could do to start paying off your debt faster if you had the money in the bank. No more car payments. No more student loans. A simpler future awaits when you start living the debt free life.