Typically, the individual that is looking to receive a quick conversion of their structured settlement into cash is usually one that does not want to wait for years for full payment. As a response, many settlement purchasing companies assist individuals who wish to obtain cash instantly no matter where they are in the execution of a structured settlement. Any individual that receives a lump sum for their structured settlement has the freedom to use the cash anyway they desire including the purchase of a home, car, education, and big-ticket item purchase or to pay down debt.
Converting the Plan into Cash
It is very common for the recipient of the annuity or structured settlement plan to deal with financial difficulty. Others might be finding an opportune investment that offers better returns than the amount made every month on the structured settlement. During these times, the structure settlement owners often consider converting their plan into cash to use the money as a way to increase their investment portfolio.
Purchasing at a Discounted Rate
Any company that is willing to purchase an annuity or structure settlement will do so at a discounted rate, and at the very minimum they can. Typically, the discount they offer is equal to the current bank rates. There are times when the annuity or settlement purchaser requires a higher discount as a way to cover any risks involved to guarantee a profit. Risks that may be involved include untimely payments or a settlement that has not been well seasoned (a long history of active timely payments).
Many Flexible Plans
Companies that purchase structured settlement plans usually do it in a variety of ways. This allows the owner of the settlement to sell off the total annuity, or only a portion. Many flexible plans are available that can be tailored specifically to the requirements of the individual. This way, the individual can receive a lump sum of cash at hand while still receiving timely payments from the annuity.
The course of action taken by the company that purchases the annuity or structured settlement will usually depend upon the immediate requirements of the seller including the payoff of debts, debt consolidation, business venture, or paying on their child?s college fees. Typically, the cash received for structured settlements is usually obtained as a full payment, shared payment or partial payment.
A Full Payment
A full payment of a structured settlement will involve the receipt of the entire lump sum of cash that covers the entire annuity. Usually, it is an option available when an individual has high debts that need to be repaid. Contrary to belief, an annuity that pays out over a longer period of time usually produces a smaller lump sum than those that retire sooner, even if their valued the same. This is due to the value of money as it depreciates over time, due to inflation.
Partial and Shared Payment
A partial payment can be extremely useful when repaying a loan, consolidating debt or other financial challenge were only a limited amount of money is required. Due to the given number of payments, the annuity or structured settlement sold with a lump sum will be only a partial payment of its total value.
A shared payment of an annuity or structured settlement is usually paid out as a lump sum that will paid over a short time. Through a shared payment, the individual can pay off ongoing expenses that will be incurred in the near future including the purchase of a new vehicle, or paying down educational fees.
Individuals that are intending to obtain cash for their annuity or structured settlement will need to have the approval of the court. The paperwork will have to include the wording that complies specifically with state and federal restrictions. Before ever deciding on which buyer to do business with, it is essential to check out their credentials along with the history of the company.
Jason Brown is a writer for StructuredSettlement-Quotes.com, your #1 structured settlement and annuity marketplace. Learn how to sell you annuity for a lump sum payment.?
diplo rodney atkins fergie one republic michael dyer suspended new years ball drop new years rockin eve
No comments:
Post a Comment