Structured Settlements--To Sell Or Not To Sell

Copyright (c) 2011 Sandra Tiffany

Structured settlements are designed so that plaintiffs, especially those that have suffered life altering injuries, will receive a steady stream of payments for their future care and expenses. Structured settlements can also be awarded for damages such as malpractice and other torts.

Annuities resemble structured settlements in that they are generally purchased by an individual to assure steady income for themselves or a loved one. And lottery winnings also resemble structured settlements if the winner chooses a payout for a period of years instead of receiving a lump sum.

If an individual is not responsible financially and might quickly dissipate a large lump sum payment, then retaining a structured settlement would be a prudent decision. However, if you happen to have been seriously injured in an accident and you need to be able to take care of yourself with initially high medical equipment purchases and care, then selling all or part of your structured settlement may be a wise decision.

The structured settlement may seem as if it will provide you security for a lengthy period, but it is often not sufficient to pay for immediate needs such as care of the family, buying and paying a mortgage on a house, college tuition for children, an auto and the like.

Yes, the settlement will keep paying you a steady amount, but that amount will be worth less and less in a period of high inflation. Selling your settlement for a lump sum will allow you, for example, to purchase rental property as an investment and otherwise expand your asset portfolio. Conversely, if people feel the economy will get worse, they will be more fearful of selling a structured settlement.

Currently, there are a number of structured settlement factoring companies that purchase these settlements or annuities. Radio, TV and the newspapers are filled with advertisements seeking such purchases. Some people, however, predict that these companies will become less plentiful as government regulation of their practice increase.

Ultimately, the sale of all or part of a settlement or annuity must depend upon the personal situation of the settlement or annuity holder. If the holder of a settlement might waste the lump sum on careless adventure or expensive habits and addictions, then the structured settlement should be retained. However, if by selling a structured settlement or annuity a person could purchase with a lump sum ever more expensive long term care insurance, a debt free residence, or make some wise investments, then selling a structured settlement or annuity would be advisable.

------

One of Sandra Tiffany's relatives received a structured settlement as a result of an injury and she is quite familiar with his decision to sell the settlement and the results of that sale. Her site covers selling structured settlement, annuity, lump sum store, viatical settlement store, books, articles and a "Deal of the Day" opportunity.

http://www.sell-settlement-for-cash.com