Structured Settlement Cash - Read This Before You Settle Your Case
by Doug Smith

Are you are considering selling your structured settlement to a structured settlement cash service in exchange for a lump sum? If so, you need to know these things. A structured settlement means a deferred payment obligation to you. It usually results from the settlement of a legal claim, e.g., a personal injury claim. Often these settlements are paid out (structured) over time.

There is a lot of controversy concerning people who cash in a structured settlements in place of the payments over time. A structured settlement annuity is a small part of a very large industry. The popular opinion is that it is illegal to sell structured settlement payments or annuity payments for lump sum cash. In fact, structured settlements or annuity payments are often sold to structured settlement cash services.

If investigating whether to utilize a structured settlement cash company, be sure the company has a good financial reputation and background. Don't risk forfeiting your money after you sign your annuity over to the company. Research the structured settlement cash company you have chosen. Diligent research now will prevent problems with the structured settlement cash company later.

There are big tax advantages to having a structured settlement. However, many people prefer to receive a large cash lump sum. A disadvantage of the structured settlement system is not having cash for emergencies because your periodic payments are fixed.



You may also have to pay high commissions when purchasing annuities. Some people prefer to have structured settlement cash for a purchase they have planned for a long time. Perhaps they may finally have saved the down payment for their dream home.

That down payment may be something they could not otherwise afford in the absence of their structured settlement cash pay out.

Retain an experienced attorney before you decide to sell a structured settlement for a cash pay out. Some people make the mistake of selling a settlement for one-half or even one-third of the total structured settlement value.

All they can see is the lure of fast cash. Structured settlement cash companies can make huge amounts of money from people who are in too much of a hurry to sell a structured settlement without legal advice.



It is worth your time and effort to research the operation and pitfalls before working with structured settlement cash companies. A structured settlement cash pay out may have legal, tax, or other restrictions you will need address.

Have an attorney explain the process and details involved with selling a structured settlement or annuity for cash. educate yourself about the structured settlement cash process and you will make a well-informed financial decision.

This article is ©2006 by Doug Smith. Got a structured settlement and don't know whether to keep it or sell it? Want to know how to get the most money out of it? Browse our library of free articles and tips on structured settlements. Visit StructuredSettlements.LoansForAnyCredit.com. This article may be freely reprinted as long as this copyright notice remains intact, the article is unchanged, and all hyperlinks remain active and clickable.