Structured Settlements 101
When someone has a settlement, they usually are getting payments on a monthly basis. The settlement can be for injury, malpractice, worker’s compensation, or medical negligence. The settlement is designed to protect you from having to worry about financial duress in the future in regards to medical expense, living expense, and any other expenses that could be unseen. But what about selling the settlement? How can I get cash now for structured settlements that I have?
How Payments Work
After a settlement has been made, payments are then made to you each month. These payments usually are small but enough to cover any expenses that may come from needing medical treatment, medication, or any other expenses. The total amount of the settlement is broken down so that there is adequate financial means every year. Then that amount is again broken down into 12 monthly payments. That is the amount that you receive each month.
Sometimes settlements include periodic lump sums which are strategically placed in the settlement to help offset the need for larger purchases. Other times they are not there. That is when the time for looking at getting cash out of a structured settlement can be necessary.
About the Process
Getting cash for a settlement is easier than most people think. There are companies that will help get you the cash you deserve out of a settlement. Settlements are simple in design. Once a settlement is proven, the payments made are not taxable. This means that the money is yours to spend how you want. But there are things to consider when looking to get a lump sum of money.
- Time – this is the biggest part of any process regarding getting cash for your settlement. When the paperwork is started, it can take upwards of 90 days or more to get the funds out of a settlement. This is due to the paperwork of course, but everything must be filed correctly with the court system and done in a very specific way. One misfiled document could make your request for cashing out a settlement can end up being denied.
- Company – With so many companies out there that want to help you take your settlement and turn it into cash, some research should be done. Not all companies are licensed to work in your state and some have higher rates than others. Talking to friends and family can help rid of the ones that just won’t work. You want to get the most out of your settlement, so why bother yourself with a company that will take more than their fair share? Answer is you shouldn’t.
- Understand the Risks – Selling a settlement for cash to you can be a good thing. To the insurer, they can have it set in the paperwork that selling the settlement before a certain age is reached can have consequences. Worse is that in doing so, it is considered a breach of the settlement agreement. This would make the settlement null and void and all payments if any are left would not be forthcoming. Read your settlement and take it in with you to the company you chose. They can help determine if there would be any penalty for selling the settlement for cash.
So there is a short overview of what a settlement is, how you can use it, and if selling how the best way to go about getting the cash you need. It’s basically taking the payments and turning them into a lump sum that you can get sooner than later. Just be wise with how you use the money and make sure that everything is taken care of. You don’t want to sell your settlement and then end up in a worse situation than before.Call Us Today
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