I
f you have a structured settlement but would prefer a lump sum, you can choose to sell it off. Those who have these settlements usually get paid an annuity, which is a check every year. For some, this is a great addition to their income. However, there are several reasons one might choose to sell instead.
Reasons to Sell
If you are having financial troubles, accepting the lump sum could be beneficial. While you would get less overall, you could prevent yourself from hardship and additional interest or debt that you have, making this the smart choice.
Another reason to sell your structured settlement is if you are retired and would prefer the lump sum over the monthly payments. Some retired couples choose to do this so they can travel, pay off their home, and have something to leave behind to their loved ones.
There may be family reasons to sell your structured settlements too. Some owners may choose to sell for purchasing their first home, or paying for a wedding. Doing this instead of accepting monthly payments is worth it for many people as these are huge life experiences.
Where to Sell
Finding the right company is important, so shop around to see what offers you get. Different companies can offer different amounts for your settlement which might also depend on market fluctuations. There are many big and small companies who will purchase them from you. Shop around and find the best offer with the most reputable company.
Downsides to Selling
Remember, if you choose to sell your structured settlement you will lose the tax advantages. That means you will have to pay taxes on the lump sum of money once you receive it. Also, selling means you will get less overall money. This is an important choice that can determine your financial future, so plan this carefully.
