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Structured Settlement Annuity Companies

A common type of financial contract in America is a structured settlement. This is an agreement where you receive monthly payments for a certain amount of time, often because of a legal settlement or from an annuity. While these arrangements are great for monthly income, they have a rigid payout structure. If you need a lump-sum of money fast, it is difficult and expensive to get it out of your structured settlement.

In these situations, a structured settlement company can help. These companies specialize in giving you quick cash in exchange for some of your future payments. This is an easy way to free up liquidity when you’re in a tough spot financially. There are a number of different situations when it can be to your advantage to consult a structured settlement company.

Court Structured Settlement

If you win a court case and receive a financial payment, you’ll usually receive the money as a structured settlement. What this means is the court takes your winnings and sets up a long-term payment plan. The point of a structured settlement is that it helps Americans manage their court winnings and make sure they have enough income for the future.

While this is a great idea in theory, it can be a problem if you need more money all at once. For example, you could have some unpaid legal or medical bills that you want to pay off in full after your trial. Through a structured settlement company, you can get this money. A structured settlement company would give you a lump-sum payment in exchange for some or all of your future court payments.

A nice benefit of this arrangement with a structured settlement company is that it maintains the tax benefits of your court settlement. When you receive compensatory payments for an injury or illness, this money comes in tax-free each month. When you sell these payments for a lump-sum payout, your payout is still tax-free.

Annuity Payments

A structured settlement company can also help you manage an annuity. An annuity is a type of investment contract often used for retirement. To buy an annuity, you make a large, lump-sum payment to an insurance or investment company. In exchange, the annuity company gives you a series of monthly payments either for a fixed period of years or for the rest of your life. Once again, this is a great strategy for setting up a budget, but runs into real problems when you need cash fast.

Annuities don’t offer a way for you to speed up your payments. Generally, if you need a lump sum payout, you need to cancel your contract. Annuity companies charge a penalty, known as a surrender charge, when you cancel your contract. In addition, you lose your investment for the future. If you locked in a great interest rate, cancelling your contract means you might not be able to ever get the same rate again.

With a structured settlement company, you can get around this issue. You can sell some or all of your future annuity payments to the structured settlement company in exchange for the money you need. By doing this, you aren’t ending your contract so you won’t get charged surrender charges. In addition, it gives you a way to keep your contract going should you only want to sell off a portion of your annuity.

Lawsuit Advances

Winning a lawsuit can take months or even years. This can put an enormous strain on your finances and possibly force you into settling for less money than you deserve. By working with a structured settlement company, you can make sure that you have the resources to last through your trial by taking out a lawsuit advance.

In a lawsuit advance, a structured settlement company reviews your court case to see how likely you are to win plus estimates how much money you will win. After this review, the structured settlement company will make you an offer for the amount of your future court winnings that you want to sell. A lawsuit advance is a safer choice for extra money than a bank loan. If you lose your court case, you don’t need to pay back a lawsuit advance whereas a bank loan needs to be paid back no matter what.

Other Services

For the most part, if you have money set to come in sometime in the future but you need cash today, a structured settlement company can be of assistance. Other common services offered by structured settlement companies are advances on a future inheritance, sales of mortgage notes, and advances on cell phone tower leases. In all these transactions, you get to exchange a long, drawn out stream of payments for one easy, lump sum payment.

Money in the future won’t do you much good if you have financial issues today. A structured settlement company can give you fast cash at a fair rate so you don’t get stuck going broke waiting for your future income to come in.