Lump Sum or Small Payments?
Posted by danaustema on November 16, 2008
The upside to cashing out with a structured settlement company is that you would end up with a lump sum to use for whatever you need. There are many companies who offer lump sum cash payouts in exchange for a stream of annuity payments. With the advent of new Federal Laws in 2002, an injured party has the legal right to get cash for their structured settlement payments by selling their annuity to a third party if he or she wishes to do so. Finding a buyer can be somewhat complicated, especially if you’re not sure where to begin.
Structured settlements provide the injured victim with the immediate security of an assured payout rather than small payments over time. Structured settlement companies who purchase a structured settlement do so to make a profit. Structured settlements provide very important financial protection to injured victims. Protection against early dissipation by annuity owners who lack the experience to invest the large sum of money. Structured settlement transactions are priced on the basis that a dollar today will not have the same buying power as it will tomorrow.
This entry was posted on November 16, 2008 at 3:13 am and is filed under Factoring Companies. Tagged: annuity, annuity payments, buying power, Cashing out, injured victim, lump sum, structured settlement. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
