If you’ve won a settlement due to a lawsuit, you’re probably receiving it through regular annuities in what is known as a structured settlement. While there is much to be said about receiving payments on a regular and reliable basis, not everyone knows that the settlement money is theirs, and they can have it in a lump some whenever they want it. This is accomplished by selling the settlement to a structured settlement company. Here are a few reasons this could be the best course of action for you.
1. Payment Is Extremely Quick
When you receive money through annuity payments, you’ll never have all of that money until the annuities have exhausted the funds. This could take years, and there are several ways you could use that money right away. When you sell your payments to a company that buys structured settlements, that money could arrive within a few weeks, enabling you to spend it on whatever you want.
2. Pay off a Debt
If you’re carrying a lot of debt, it may not be wise to have settlement money sitting somewhere you can’t reach it. The compounding nature caused by high interest rates means it probably makes better economic sense to have that money up front instead.
3. You Can Invest Your Settlement Money
As your structured settlement arrives over the years, the effect of inflation devalues your payments the longer you wait. By receiving your money in a lump sum, you can have access to it before its value decreases, and then invest it so the value of your money will actually go up instead of down. You could also invest it in a new business or in making improvements to an existing business. Either way, your settlement money is working for you instead of waiting to arrive several years from now.
4. Pay off Medical Bills
If you’re hit with a medical emergency, you might have new debt you can’t pay off. This is particularly problematic if you’re unable to pay for continuing treatment. Selling a settlement in such an instance can literally be beneficial to your health.
5. Pay for Tuition
Getting a degree is extremely important to your prospects for earning a living in the future, and a perfect example of when money delivered up front can be more valuable than when it’s received through annuities.
To gain advantage of having access to your settlement money when you need it, contact a company that buy structured settlements, and they’ll walk you through the process.