The Benefits Of Selling Your Structured Settlement
Filed under: Structured Settlements — Structured Settlement Expert @ 2:14 pm
In a personal injury case, a case may be settled thru a lump sum payment or a structured settlement in exchange for dismissing the case and thus avoiding the time and expense of litigation. A structured settlement is in lieu of a lump sum payment and is defined by structured periodic payments made directly to the claimant that can be used for ongoing medical care and other costs associated with their injuries, or as the claimant otherwise sees fit. A plaintiff is often open to the terms of a structured settlement as it provides them with recurring payments over time.
However, the circumstances of a claimant may change causing them to need a lump sum over the periodic payments of their structured settlement. Ongoing payments may be financially limiting to them in terms of making decisions regarding how best to use their own money. For instance, a claimant – instead of receiving ongoing payments in amounts that offer little momentum in addressing there current needs – will choose to sell structured settlement payments and receive all or part of their money in a lump sum payment. Reputable buyout companies work with their clients in this capacity, giving them a lump sum cash payment in return for an assignment of some or all of their structured settlement annuity payments. The buyout company will begin to receive the payments from the annuity, and their client will have cash in hand.
With a lump sum of money at their disposal, claimants have buying power, as well as financial power to make decisions that can affect the rest of their life – such as starting their own business, eliminating debt, paying for education, or buying a home.
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