Structured settlement transfer is it a good idea?
Structured settlements are future monies that have been awarded to you or a family member as the result of an accident or some other incident that caused an injury or life changing event that a court has deemed a party responsible and you are to receive monetary compensation for your loss or injury.
People receive structured settlement payments as the result of legal action. If one party sues another, there might be a settlement and the defendant might agree to make payment over time. The defendant, in conjunction with an insurance company, purchases an annuity policy from another insurance company. The annuity policy makes payment now and in the future to the original lawsuit’s plaintiff.
These payments are usually spread out over time and can be paid out in the form of lump sums, monthly payments or a combination of both.
Structured settlement transactions must be accomplished according to strict legal guidelines. A Transfer and Assignment Agreement are executed with the seller following full disclosure of the price and other contractual terms. The sale is announced to all interested parties (payment beneficiaries, insurance companies) and then must be approved by a judge.
There are any number of companies that are willing to take your future structured settlement payments and pay you a discounted cash value for the payments now rather than in the future. This comes at a price so it is well advised that you do your homework and find a company with a good track record for handling these transactions and one that will provide you with the best rate possible.
You are not obligated to transfer all your remaining payments. You have the option of transferring a portion of your future monies it is your choice.
Everyday something happens to someone which requires they need to access funds now instead of waiting. You could have an emergency that requires immediate home or auto repair, or you may want to start a new business or maybe they need money for the education of a child. Whatever the reason, a structured settlement payment stream is a personal financial asset that can be exchanged for cash today.
There are myriad legitimate reasons to have the ability to use your structured settlement transfer money now. Having the ability to access these funds now rather than later, makes sense to a lot of people. It gives you the ability to resolve issues that need immediate attention. It also allows you to take advantage of the change in the housing market and possibly purchase a new home or look into starting your own business with up front capital.
So is a structured settlement transfer a good idea? Depending on your individual situation, a structured settlement transfer could be a very good idea. Just remember the key is doing your homework and have a set organized plan for the use of the funds.