If you are receiving annual payments from a structured settlement, you may be able to exchange your annuity for cash. This is an important decision, and you should consider all aspects of the question. It’s a good idea to talk to a personal financial planner as well, to determine if you would be better off getting cash for structured settlement payments. For many people, selling fixed annuities in exchange for a lump sum frees up their money, to use productively or invest as they wish.
Lump sum v annuity
Fixed annuity settlements can originate in several different ways. You may have won the lotto, or been awarded a legal settlement, or you may be receiving an insurance or disability payout. A structured settlement annuity is paid out in fixed yearly payments over a number of years, most often 29 to 30 years. Structured settlements have become popular since the 1950s and by 2013 there were around 34.8 million individual deferred annuity contracts with a total worth of more than $2.58 trillion.
Clearly, that’s a lot of money tied up in annuity payments. Employee lawsuits, for example, lead to average payouts of $150,000. And in 2013, the total payouts for medical malpractice lawsuits reached $3.6 billion. For someone receiving an annuity, it can be an assured source of income for years. At the same time, the money isn’t always at hand if they need to make a major payment.
Reasons for selling a structured settlement
There are many good reasons for selling an annuity settlement in exchange for a lump sum. With an annuity, the total amount involved is subject to inflation and loses value over time. Even $100,000 a year will not have same value thirty years down the line. If, instead, you decide to sell annuity payments and invest your money, with good advice and planning you can increase the value of the money over the years.
While an annuity guarantees a fixed income for what is a lifetime for most people, there are several disadvantages to this model. You may want to use your money to go to college, buy a house or a luxury car, to start a new business or to invest productively. While your money remains tied up in annual payments, you can’t access it easily, even to pay for urgent medical needs. You can’t even borrow against it.
What would you do with your money?
What would you do if you could access your money all at once? If you decide to get cash for structured settlement payments, you could use it to:
- Go to college
- Buy a house
- Buy a car
- Pay off your debts
- Start a business or invest in one
- Build a financial portfolio
- Take a luxury cruise
If you’re like most people, you have dreams and goals but not the means to realize them. By getting cash for structured settlement payments, you may have the key that will unlock the door to a better future.
Getting cash for structured settlement payments
There are many good reasons to choose cash for structured settlement payments. This is your chance to complete your education, to pay off your debts, to treat yourself to a luxury cruise. If you’ve decided to sell your annuity, the best thing is to find a reliable speciality finance company to help you. They have expertise in institutional funding, underwriting, and law and have built up relationships with national banks. They can can help you get access to your cash now instead of waiting for 30 years.
If you’re ready to make positive changes in your life, you don’t want to wait. With your cash in hand, you can begin to move forward to meet your goals.