The Confusing Phrase of “Structured Settlement Cash Advance”

The Confusing Phrase of “Structured Settlement Cash Advance”

We frequently get contacted by folks looking to get a cash advance on a structured settlement.  Cash advances seem to be fairly common these days in other realms.  For example, many websites and for that matter store fronts are dedicated to things like:  Title loan cash advances, payday loan cash advances and other forms of getting money immediately for some asset or a right to payment in the future.  While there are companies that offer structured settlement cash advances, the nature of these advances are dramatically different than ones you find, for example, if you look to get an advance on your car title.

On a very simple level, a car title cash advances works to allow you to receive some amount of money today in exchange for putting up your automobile’s title so that the entity giving you the cash today has an asset it can collect against should you fail to pay back the money within the agreed period of time. That is to say, if you take out a $500 car title cash advance it is more akin to a “loan” in that the company will look to take possession of your car in the event you fail to pay the money back… with interest.  ”Structured settlement cash advances” however do not work in this fashion.

In order to truly get money from your structured settlement, you as the annuitant, generally have two choices (although variations of these two choices exist).  The first choice, and the most prudent if you are not in need, is simply to wait for the structured settlement payments to come in on the predetermined schedule.  As you know, structured settlements are set up to provide some degree of economic protection.  As the annuity issuers and owners are generally well established companies, you can rest assured that in most cases, you will receive your payments as scheduled.

If you find yourself in a bad spot however, and you have explored other options for raising money, one thing you may consider is selling your structured settlement for cash.  This option however has clear downside including what rate the purchaser uses to discount your payments for calculating a lump sum.  If you determine this is your best option, you may also want to discuss the type of cash advance a company will provide you as the transaction moves through the system and you wait for a court to either approve or disapprove of the sale of your structured settlement.  While the availability of a cash advance on structured settlement sale is definitely important to many customers, it is only one of a host of other factors you may want to consider.

Stay Focused When Evaluating Options Including a Structured Settlement Cash Advance

Stay Focused When Evaluating Options Including a Structured Settlement Cash Advance

Call Us at 800-317-3769 to discuss various options that we can provide.

Creative Life Contingent Structured Settlement Buy out

Creative Life Contingent Structured Settlement Buy Out

When it comes to selling life contingent structured settlements not all buyers are created equally.  As you may have read on other sites, there are various web pages out there that seem to indicate that the company behind the website have experience getting individuals cash for structured settlements that are life contingent.  The reality, however, is that many of the sites are purportedly nothing more than marketing groups that find “leads” and then sell the lead or information to 3rd parties.  While you may or may not come to a reputable life contingent settlement payment buyer through this methodology, we believe that it is better to start with a group that will directly work with you and actually has the expertise and background to do so.

Knowing the secondary market place for life contingent structured settlement sales is important when choosing a company.  What you do not in this ever changing market place is that there are various options you may have depending on your age, health, and due date of the life contingent structured settlement payments.  Some buyers, especially ones that do not really understand the space, may only provide you one cookie cutter, take it or leave it offer.  This may be true even if you multiple alternatives exist.

Structured Settlement Life Contingent- Learn About Options

Structured Settlement Life Contingent- Learn About Options

Take for example (and just as example), a 26 year old healthy annuitant that has a monthly structured settlement of $5,500 that starts paying in 2026.  Maybe the life contingent structured settlement is due from Hartford or Allstate Life or Metlife or one of the other well known structured settlement annuity issuers.  Now, with such a large monthly structured settlement- and coupling that with the annuitants fairly young age, the fact that s/he is in good health and that the monthly structured settlement income comes back in March of 2026, there are a variety of options that could be designed to get this person a lump sum.  Not all the options require that the annuitant sell the full monthly life contingent payment stream.  More so, it is possible to construct a transaction that does not even start with the life contingent structured settlement due in March of 2026.

Like with any sale of future income, the sale of life contingent structured settlement payments should not be done in haste and the annuitant may be best off to shop around to various vendors to see which company offers the best option and/or the most cash- depending on the circumstances.

At Catalina Structured Funding, we take pride in our ability to assist people get a lump sum for all or some of their structured settlement annuity payments.  Call us at 800-317-3769.