You’ve just been awarded a settlement for a personal injury. Unfortunately, it’s in the form of smaller monthly payments, rather than the large sum of money you prefer to have, or maybe even need, now. You may be discouraged at this point, with overdue medical bills and other expenses. But there is a way to get cash for settlement now rather than having to wait for years to get the total amount.
There are many companies that specialize in working with people who have received structured settlements, in order to get them the money they need when they need it rather than later. These companies actually purchase the settlement from the customer, giving the customer the cash for settlement he is in need of while the company collects from the settlement over time.
The only real downside to getting cash for settlement is that you will always lose some money overall. You lose the tax benefits that are a part of the structured settlement, and you also lose some money from the principal amount; since the companies that purchase structured settlements are not non-profit organizations it is going to cost you something. You’ll need to consider how much having the money now rather than later is worth to you. Also, the sale of structured settlements is carefully regulated by state and national laws, in order to make sure the bargain will be in your best interest.
Since the practice of selling structured settlements is so heavily regulated, you’ll need to work with a company that is adequately experienced, or you’ll run the risk of having your request for cash for settlement turned down. Like any other purchase, it’s a good idea to receive offers from several companies and compare the pros and cons of each quote.
Many people like to speak with a financial adviser, but its better not to let them become directly involved in the process of choosing a company to purchase your settlement. Many financial advisers are affiliated with, or being paid by, a specific settlement company, and the advice they give you will be biased. Make your own decision, but be sure it is a sufficiently educated one. Be aware that it is better to work directly with a company than with one of their brokers. Working with a broker only adds in another person who needs to be paid for their services…paid from the money awarded to you.
If you need to get cash for a settlement, be sure that you begin the process early enough that you are able to get the money you need by the time you need it. The process of getting you your cash will take at least 90 days. Watch out for companies who claim otherwise as this is an indication that they are either dishonest or not well informed about the process.
There are many good reasons you may need money for settlement. Selling your structured settlement may enable you to buy a home, pay off debt, prevent your mortgage from foreclosing, pay unforeseen expenses, or any number of other things. It gives you much greater financial flexibility, and enables you to make your own choice as to what is done with the money you were awarded.
By Riannon Cutler