3 Things You Didn't Know About Structured Settlements
A structured settlement is a staggered payout awarded to claimants as the result of a lawsuit or lottery winning. Though it sounds great, it can be frustrating to celebrate a victory only to discover that the reparation money you won will only trickle in over the course of many years.
Many who find themselves with such a structured payout plan choose to sell their annuity to get cash for settlements. Before you take any action, though, keep in mind this helpful information, and remember — you have options:
You can trade your lump sum for an immediate annuity, or you can trade your structured annuity for a lump sum. It might be more important for you to receive steady payments for the rest of your life, or you might need a large sum of money now to achieve your goals. With an immediate annuity, you can start receiving payments in as little as 30 days.
Never heard of structured settlements until you found yourself with one? Well, they are far more common than you might have thought. Over $6 million is paid each year to fund new structured settlements, and by the end of 2013, there were 34.8 million deferred annuity contracts in place — exceeding upwards of $2.58 trillion. More than 37,000 claimants use structured settlement money every year. Whether you decide to get cash for settlements by opting for a lump sum or stick with the structured payments, you’ll be joining thousands of other Americans.
Many people are happy with their choice after deciding to sell their lottery annuity or other annuity settlement. In fact, a whooping 92% of claimants say that they are satisfied with their decision to sell their structured settlements. Perhaps this can be credited to the opportunities afforded by a lump sum that (practically) fell from the sky. Going back to school, buying homes or luxury vehicles, or traveling are just some of the new found options available to you.
When you feel your heart sinking after hearing how your lottery or lawsuit payout is structured, don’t lose hope. There are a variety of ways to structure your payout plan, with many companies specializing in buying structured settlement annuities! Enjoy your new found abilities and opportunities.