Saturday, 24 November 2012

Selling Structured Settlements - The Big Payoff

What is a structured settlement?
structured settlement is most times a settlement which is acquired subsequent to the time when an officially permitted course of action needs a person whom the petition is against to pay out a certain amount of money to the claimant or petitioner for a given length of time. The state of affairs of structured settlements would then necessitate that the claimant be paid on monthly basis for a specified number of years. Sometimes, the payment for structured settlements is continuous and last for a very long time. This can go as far as lasting throughout one’s life time.
Nevertheless, the claimant can choose selling structured settlement to a company to enable him get his money paid to him at once and instantly. There may be a reason for choosing this option but being aware of your intention for taking this option determines how thriving getting your pay will be.

The advantages:

Selling structured settlement is appropriate when you want to buy goods or services in bulk take for an example when you need to buy houses or take care of the cost of your child’s university or college costs. Again, for those who are already old and as a result may not live long to gain from the structured payment over a long period of time, they can choose to sell out their structured settlements to companies specialized in buying structured settlements. You can also decide to get your structured settlement for use by your family in case you die and this gives you the option of sharing your money to your children or those you want to the way you want.

Also if you have no intention of making use of the money you realize from selling structured settlement immediately, you have the option of requesting that your money be deposited into your savings account so that you can lay hands on your money anytime you want and need it. If you or your financial adviser thinks that being paid in bulk is a lot better and will encourage investments than receiving the money for structured settlement over a long period of time, you can also choose selling structured settlement.

The disadvantages:

When you decide to sell your structured settlement, to the companies specialized in buying structured settlements, you will not be able to get the amount of money you would have got if you had kept it all for yourself without selling it. This having been said, you still have a profit in that you are still able to make choice of the company that is buying structured settlement from you. This means that you must be very careful when you select a company that you sell your structured settlement, plus compare the prices at which different companies buy to help you maximize your gain as much as possible.

Giving out your structured settlements to companies that specialize in buying structured settlements or selling your structured settlement may not profit you if you have difficulty in managing and putting your money to a good use.