A Structured Settlement Annuity: Information and Examples To Guide You To Cash

What is a structured settlement or annuity? I often wondered what is an annuity was let alone know what are the benefits of having a structured settlement and why to have one instead of a large payout. Structured settlements happens when the person and the company agrees upon a financial or insurance agreement based on the terms. It can be received each month or year for funds to be sent out to the claimant. Structured settlements is granted upon a person in a judgment receiving the funds and receives it on a timely basis based on what is written in the agreement of the installment provided to the person. The funds schedule depends solely on the person and what the company agrees to. There are two ways for a person to receive payments and it can either be in installments each month over a number of years or lump sums over a number of years.

There are many organizations or ways to receive a structured settlement based on company or funds. Here are some circumstances that provides a way to receive structured settlements: 

• Lottery cases
• Guardianship cases
• Social Security
• Workers Comp
• Disability
• Accident Cases
• Lawsuits
• Large Payment From A Will

There are a few benefits to having a structured settlement, even though most people would rather see the lump sum of money into their hands. It would be best to receive money through time to take it as a second income to your household instead of receiving all of it and having to deal with other issues. Here are some benefits to having a structured settlement rather than receiving a lump sum: 

• Reduce taxes
• Receive timely payments to have cash on hand throughout the years
• More security of having monthly payments rather than lump sum
• Beneficial towards the future
• Save more money
• Good for senior citizens
• Good for minors

Many people that have a structured settlement may be asked from outside agencies to buy their structured settlements to make an investment. So, what are the benefits of selling a structured settlement? Is it safe to sell a structured settlement to an outside company? There are a few benefits to selling a structured settlement like receiving a large sum of cash rather than receiving the periodic payments. Another benefit is not having to deal with waiting on your cash and following by an agreement if you choose not to have the settlement, but there are disadvantages as well. Selling your settlement can be tough on your part because there are certain restrictions by certain laws and regulations in some states to not sell your settlement. Another reason can be the company purchasing your settlement can try to make more money off of you rather than helping you. There can be certain restrictions on your agreement by selling your settlement that can hurt you in the long run so make sure it is something that you are up for. Consult a lawyer before you make any decisions on a settlement.

EPS Settlements

J.G. Wentworth

Fairfield Funding