Have you recently won the lottery or had a lawsuit settle in your favor? If so then you are probably aware of how a structured settlement annuity works. Put simply, lottery winnings and lawsuit settlements are not paid out in a lump sum even though they may be marketed that way. Instead, the money is paid out to the deserving individuals in small amounts on a monthly basis. The good news is that by selling an annuity settlement you could get the money you deserve in a lump sum. Here’s a few things to know about selling a structured settlement annuity:
1. Structured Settlement Types – Annuities come in all shapes and sizes; two of the most common types of annuity payments are over the course of 25 years or every month until death. Can you imagine having to wait that long for the money that you deserve? Unfortunately, it happens to people all across the country every day. Lottery winners and recipients of large lawsuit settlements are told that instead of being able to collect their funds in a lump sum and move on with their lives they must wait and only see tiny bits of it every month for the next several years.
2. Reasons to Sell Your Structured Settlement – The main benefit of selling your structured settlement annuity is to get your money in a lump sum instead of having to wait years or decades to see it all. Choosing this option allows you to make the most of your money whether that be by taking a vacation to somewhere you’ve only dreamed of going or by paying off your debts so that you can start saving money. Structured settlements are probably more common than you think. In fact, at the end of 2013 there were 34.8 million individual deferred annuity contracts in place. If you or someone you know has a structured settlement that you are tired of waiting on then contact someone today to discussing selling it!
3. What You Can Spend It On – You are the only person who can decide how best to spend the money you have from selling your structured settlement. Americans are swimming in debt that ranges from credit cards, medical bills, student loans, or mortgages. Right now in the United States the average adult owes $3,761 in credit to various lenders. Your specific situation will determine the right way to spend the cash for your structured settlement. If you find yourself confused about where to start you may want to ask a financial adviser to weigh in.
If you have won the lottery or settled a lawsuit that has left you with a structured settlement then you may want to take some time to think about what that means for your life. Instead of getting a lump sum of money you will be afforded small amounts each month for years. Is that really going to help you out of your financial hardships? If not, then you may want to consider selling your structured settlement annuity so that you can see the lump sum payment when you really need it: now!