What you need to know before selling a Structured Settlement Annuity
When selling a structured annuity settlement there are many questions which begin to arise. Before you decide to sell structured settlements, think about what you want/need the money forIf it is an immediate medical expense, buying a home or the decision to go back to school is usually considered good reasons. Examine your needs and the needs of your family as well. Perhaps you want a new home. Do you have children approaching college age? If so, you’ll not only incur significant tuition expenses, you’ll also have less of a need for a larger home.
Selling your payments will result in a loss from the full amount. Consider whether or not it is important for you to sacrifice the security and future total amount before you make a decision. You will have to understand the implications, benefits and pitfalls so you can feel comfortable making an informed decision.
“Will I get the full amount from my structured settlement annuity that I would receive over a period of time?”
No. The amount you would receive over a period of time is calculated by adding interest to the principal amount. Instead, you may receive the present-day value of the amount. This present-day value may have to be further discounted to cover the costs to do the deal. The rest will be sent to you in one lump sum. You might want to shop around to find out where you can get the best deal.
