Sell Structured Insurance Settlements

Written by Jacey Harmon
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Once a structured settlement is accepted, a person is locked into the terms of the agreement. There is no access to the annuity that is funding the periodic payments. There is no way to change the amount of payments nor can you change the payment structure. Fortunately, there are ways around the strict rules of structured settlements that make them a little less, well, structured.

Life is always changing and with it so do financial needs and situations. A person who is the beneficiary of a structured settlement may experience a change in their financial needs. They know that they have future money coming, but they do not need it in the future, they need it now. Savvy businesses have identified that need and created a way for structured settlement beneficiaries to access future payments today.

A business will provide a lump sum of cash for exchange of the future payments. For providing this service, the business keeps a percentage of the future payments. For example, a person may need $1,000 immediately, but is receiving monthly payments of $250. A business may offer the $1,000 in exchange for the next five monthly payments. This is just an example and the difference in cash/payment is usually smaller than that. The amount of profit the company makes depends directly on how long it takes to get their money back.

Reasons to Consider Selling Future Payments

Knowing you will have money coming in the future but needing it now is a real pain. There are a variety of reasons why individuals decide to sell their payments. Sometimes the reason is very simple, such as going on a vacation or buying a new car. There are some situations that are more complex, like medical emergencies or reducing high interest rate debt. Whatever your reason to sell your payments is not important, they are your payments to deal with as you please.


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