Why Should I Cash Out My Structured Settlement For A Lump Sum Payment?
More often than not, when people are awarded compensation for accidental injury or wrongful death from their insurance companies, they choose to receive a series of payments over a longer span of time instead of an immediate lump sum of cash. These structured settlement payments usually total more than the amount one would have received at settlement. In order to opt for a settlement structured in this manner, the plaintiff must sign a settlement and release agreement that permits the defendant to buy an annuity policy to provide for the payments to the annuitant. The annuitant does not own the annuity nor does he have the right to sell it. He does have the right though to sell structured settlement payments to a third party.
Is a Lump Sum Payment Necessary For You?
The specific reasons plaintiffs have for selling structured settlement payments may vary but it all boils down to some kind of change in their financial situation. During the time the structured settlement was made, the scheme fitted the annuitant’s needs. Over time, financial hardships may strike or investing opportunities may come knocking that necessitate the possession of a large sum of cash now instead of staggered payments.
