When Should You Sell Your Structured Insurance Settlement Payment?

Have you been considering selling your structured insurance settlement payments for a lump sum cash payment? Before considering this, you need to consider a couple of things that can affect how much you receive now and in the future.

If you are already receiving payments from an annuity or other settlement, then you know that those payments are guaranteed for a set term, usually 30 years. While the monthly income you see might not seem significant, over the life of the payments, it can really add up.

The issue arises when you are wanting, or needing a lump sum of cash and begin to think about selling your monthly payments for it. Did you know that this can reduce, if not eliminate, your monthly income substantially?

The companies that are in the business of buying structured settlements or annuities are in the business to make money. If you are seriously considering selling, be prepared that you might only a small portion of the remaining payment value. This can be considerable depending upon how long you have already been receiving payments for.

Another issue is depending on if there was a legal case involved in creating the annuity for your settlement, it could be up to the judge to review or even allow the sale of the annuity for cash. Also, there are usually fees associated in selling so be prepared for those.

Most of the time, it is usually not a good idea to sell your annuity. You are reducing the total amount that you can receive over time. If you sell the entire annuity, you will not have a guaranteed income from it anymore. While these are a couple of things to consider, there are legitimate reasons to sell your structured insurance settlement payments for cash.

The main thing to consider and keep in mind when wondering about selling your annuity or structured settlement is should you sell the entire thing, or only sell a portion of the payments that will provide the cash that you need right away. This can be a good idea as it will give you the cash you need while still providing income in the future.

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Posted in: Insurance,Payment,Settlement,Should,Structured