Did you know that the average settlement amount resulting from class action cases was over $27 million?
While you may not have received a settlement of this size, you may have received a cash settlement in recent years. Did you opt for a structured settlement option?
These have been very popular in recent years. However, after agreeing on the payment structure, circumstances may change and you may find that you need a lump sum of money.
Should you consider selling your structured settlement agreement to get a lump sum? Why not consider some of the benefits of doing this in our in-depth article.
Why Sell Your Structured Settlement?
Structured settlements are designed to provide you with a steady income for many years. They prevent un-disciplined spending and ensure that you will have income should you not be able to work because of injury.
However, in time this type of settlement can become a burden.
Should you have unexpected debts, such as medical expenses, house repairs, or even a funeral, you may find that you need this money sooner rather than later.
The benefits of selling a structured settlement include the ability to get that lump sum of money at the time when you need it most.
Sell All or Part of Your Settlement?
Did you know that you don’t have to sell all of your structured settlement? In fact, most who apply to sell their settlement, do not sell 100% of it.
A person who receives $5,000 per month may decide to sell $1,000 per month for one year. This lump sum may be enough for them to be able to meet a medical expense. After the year is finished they will resume receiving the full amount.
Another person may choose to sell their entire monthly settlement for one year and live off savings.
The vast majority of people do not sell the entire amount of their settlement. It is good to consider exactly how much you need and for what purpose.
How Would the Sale Work?
Now that we have considered the pros of selling a structured settlement, how do you actually do it?
You should keep in mind that any sale of a structured settlement must be done in accord with the law established by Congress on this matter.
Congress supports structured settlement arrangements because they ensure that a person will not require government financial assistance for the duration of the payments.
However, as long as you can show the judge that your plan will not leave you financially crippled and that you have a good reason to apply to sell, they will likely approve the sale.
The Many Benefits of Selling a Structured Settlement and More
Receiving a settlement in the form of a structured settlement may have seemed like a good idea at the time. The flow of money is controlled and you are provided with guarantees about its safety. However, as time passes your circumstances may change and mean you need a lump sum after all.
If you would like to know more about finance and lifestyle subjects, then why not take a look at our other blog articles. We write and share articles each week on subjects that we know will benefit you.