What if Your Structured Settlement Payments Leave You High and Dry?

By | January 13, 2015

Retired people have structured payments in several forms. The most common are structured settlements and annuities. Though similar in the way you get paid every month, these two financial products are very different in their origin. Usually, you’ll only have a structured settlement if you were involved in a court case as a plaintiff. In many cases, your case will be very good, and the defendant (and the defendant’s lawyers) will know that it isn’t worth their time and money to wait for a court resolution. In these cases, they’ll sit you down and make a settlement offering, money that you will accept to drop your case. These funds can be available in one lump sum, but frequently lawyers are pressured to push for structured settlements. They are pressed to do so because structured settlement companies can get paid if they divvy your money out to you over months and years. This may be good for you, getting paid little by little. But it may not be. You may have lots of expenses following your case. You may be injured or in poor health. Most people’s retirement leaves nothing in the budget for expensive court proceedings, so even in the resolution has been made in your favor, you may be high and dry.

If you have a structured settlement and need that payment to be made all at once, for a variety of reasons, there are options for you. But we won’t get to those yet. Annuities are similar to structured settlements, in that you are paid little by little. But they are different in that you typically will have set up the payment structure years before, to give you income during your retirement. This works well until you have an emergency that requires lots of money all at once. This may be an injury, illness, loss of other income, or other issue. Selling your annuity can get you a lump sum to cover the cost.

This is where companies like 123 Lump Sum – Structured Settlement Company – come in. They’ll buy your annuity or structured settlement if you need cash all at once. This can get you out of some sticky situations, and is actually pretty easy to organize. The most challenging aspect of this arrangement is that you have to get your sale validated by a state court. You have to do this because some people try to sell their settlements for stuff they don’t need, like a fancy car or an amazing vacation. These things will be enjoyable in the short term, but will not benefit you in the long term, so the courts don’t allow it. They will allow you to sell your structured settlement if you have an emergency, are paying off a high interest loan, or need to pay the down payment on a house. You aren’t limited to these three reasons, but your reason for selling has to be equally meritable. So ask around and see who gives you the best deal. Selling your structured settlement or annuity could give you the financial edge you’re looking for.