Exercising Caution When Selling a Structured Settlement
With an economy in state of flux, it may be tempting time to sell a structured settlement for a lump sum. According to some reports, in September of 2014 unemployment rates dropped in 31 of the United States and estimates have it that the overall unemployment rate has dropped under 6 percent. This may sound like good news overall but if you have lost your job recently or have been unable to find employment for a while, you may be considering converting a portion of your structured settlement for a lump sum. You should proceed down this track with caution and only after you have considered all your options.
You will find various companies that buy structured settlement annuities on the internet and you may have seen commercials for others on your television. Is it a good idea to contact one of these companies and cash out your annuity or part thereof? The short answer is it depends and it depends on a host of factors that you are in the best position to evaluate and decide upon.
In considering with to move forward, it does not really hurt to get a quote from a reliable buyer and then to explore that alternative with trusted advisers if you so chose. It also may be prudent to get options from more than one or more buyers and do so with the idea that different companies may provide you dramatically different offers for the very same payments. This may be based on a host of internal factors regarding the buyers financing or it may be unrelated. In the end though, does it really matter? What you want to go with is a buyer you are comfortable with and that is providing you fair value.
Going back to the unemployment factor, if you are in this position and receiving monthly structured settlement payments you may pause and consider selling something other than your full immediately due annuity payments. While not commonly understood at first, the structured settlement buyer does not have to purchase the full annuity you don’t need to sell structured settlement payments coming due immediately. Instead, if you are relying on that immediate income but still need a lump sum, you may be best off to ask the buyer of structured annuity to provide you with options that purchase some of the deferred/non-immediate portion of the annuity payments.
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