Lump Sum or Annuity — Making the Difficult Choice With Structured Settlements Easier

Get cash now from settlement

If you have ever been awarded a lottery payment or won a particular sum of money as a result of the positive outcome of a lawsuit, you would likely know how structured settlements work. These payments are usually made in the form of an annuity, where you receive a stipulated sum of money every year until you receive the entire due amount. However, if you are in a situation where you feel the need for ready cash is overwhelming, this system might not work out for you. You can always opt to sell annuity payments and get cash for your settlements. The important question here is whether it is lump sum or annuity that you need, and the following pointers may help you decide.

For many, annuity payments might actually make sense. If you are in a situation where there is no immediate need for a bulk amount of cash, you should have no problems sticking to the annuity system of payments. Getting a set amount of money at regular intervals might ensure that you remain financially viable over a longer period of time, and even help you manage your finances better in the long run. If such is the case, the debate of lump sum or annuity should most likely swing in favor of the latter. However, if your situation is different, there are other things you can do.

There are certain situation which might require you to have a large amount of liquid cash in hand. For example, if you are among the 40% of American families that spend more than they earn, you might have landed yourself in some significant debt. Having some cash in hand can enable you to deal with that debt in a more efficient way. If you have always wanted to start a business, having some money to use as seed capital can enable you to get your business idea off the ground. A lump sum amount of money might help you purchase real estate that you have always wanted, or finance higher education and go on to further your career. If you are in any of these situations, the lump sum or annuity debate has an easy answer — selling annuity payments.

When you have the lump sum or annuity debate in your mind and have arrived at the conclusion that you really need to sell your structured settlement for immediate cash, there are a few steps that need to be followed. To start off with, you need to find the right people to do business with. You are likely to find a number of companies in your area that specialize in the purchasing of structured settlements, and you need to research them carefully before you make your choice. Learn about the kind of returns you can expect from each establishment, as well as the fees and other necessary deductions that would be applicable, finally arriving at the final figure that you would be entitled to receive. This is the figure that you should be concerned with, and going with the company that brings you the best deal in this respect should be of great importance.

Once you do sell your structured settlement, you should expect the entire lump sum amount of money to reach you in very little time. Using this money for your intended purpose can allow you to finally realize your dream and enjoy financial comfort for an extended period of time.

Leave a Comment