A structured settlement is an arrangement which pays out a huge amount of money over a period of time. It is often called periodic payments because of the nature of payment. If you win in a lottery or if you won a personal injury case, you will likely get a structured settlement rather than a lump sum.
This type of settlement lets you receive a steady income over a period of time to prevent from spending all the money at once. However, a structured settlement can lock up the payments so that you cannot gain access to a huge sum even for emergency purposes. You have another option though, which is to sell your structured settlement.
Considerations for Selling Structured Settlements
Before deciding to sell your structured settlement, you must carefully think it through so that there are no mistakes in the transaction. If you make the wrong decision, you will lose a huge amount of money and you will also lose the financial security that periodic payments provide.
As a legal arrangement, a structured settlement can have legal constraints that can hinder you from selling it. Consult your lawyer first regarding this decision and have him review the terms of the sale. This is to ensure that the terms comply with your needs completely and that you do not lose so much money in the process. Remember, the companies offering to buy your structured settlement intend to gain a huge profit from it. Thus, you must tread carefully to ensure a fair transaction.
Shop around for different offers. Obtain quotes from each buyer and compare them to arrive at the best offer. Since such companies are in it to make as much profit as possible, you must be careful in dealing with them and carefully assess each of the offers they make.
Research the background of each buying company. Even though they may promise you an attractive offer, it does not guarantee that you will get it. Verify that the company’s reputation is spotless when dealing with structured settlements. You can consult the Better Business Bureau to find out if complaints have been filed against them and that their company has a good reputation among customers. You want to avoid companies that go bankrupt or disappear after you have signed an agreement with them.
By carefully assessing the companies and their offers, you can find the best offers to suit your needs. Consult your lawyer first to review the terms to ensure that you are getting the best deal. If you decide to proceed with the transaction, at least you have made adequate precautions to protect yourself and your settlement.