Are You Ready to Sell Your Structured Insurance Settlement?

Selling your structured insurance settlement today is very tempting to a lot of people suffering financial difficulties. These difficulties need to be assessed against potential earnings that the insurance policy will bring on it's maturity date against what will be achieved by selling it early.

These term life insurance policies have been designed with a long term benefit in mind to be fully realised only on their maturity date. By selling it before this date will sometimes bring a penalty that can be so severe that you would have done much better with the amount of money accrued in it if you had simply banked it into a term bank deposit.

So what will be the benefit of selling early for you?

It will certainly relieve you of those embarrassing phone calls asking for bills to be paid. Creditors who phone asking for payment are very stressful to get when you owe them money. It is extremely embarrassing to say that you can't pay them now but not taking their phone calls is not an option either. In fact, not taking their calls will only get your creditors mad at you and you will more likely end up in a small claims court. This isn't good for you, your reputation or does anything to relieve your financial situation.

In fact, this kind of financial stress can get so stressful that you get to the stage of not wanting to answer any phone calls unless you know precisely who is calling. This attitude to your financial problem only worsens a bad situation as you may just miss out on a call that will be a job coming in that could cover the creditors bill.

This method of dealing with your financial problems is of absolutely no benefit to you whatsoever.

One Way you could benefit and keep your structured insurance settlement is to treat it as an asset.

Assets are highly regarded by financial institutions and other credit providers. They represent a form of guaranteed payment for the lender and all businesses who are in the financial services industry like to be as sure as possible that when they lend money to someone that it will be repaid.

So if you are fortunate and have an insurance policy that has a structured maturity date on which the full value of the policy will be realised then your recommended course of action is to borrow the sum of money that you will need to cover your outstanding debts against this insurance policy.

By taking this course of action, you will get the money that you need short-term with a chance to repay the debt and keep the full value of the policy intact for it's assigned maturity date. If you end up not being able to repay the loan against it, at least you will still have the remaining balance on the policy accruing some interest for you. But ideally, as your financial situation improves and you totally repay the loan against your structured settlement you will have been able to 'have your money and get it too'.

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Posted in: Insurance,Ready,Settlement,Structured