|
The responsible party that is paying for your settlement is purchasing an annuity, and the price to create that annuity is but a small portion of the amount you will receive over time. The worth of your money was determined by many considerations - the length of time you are to be paid, the difficulty of your situation, and the anticipated rate of inflation for the time you will receive the money.
When and if you sell your money, be aware that the total sum that you are likely to be offered may seem fairly modest. The value of your annuity in present-day funds may be half of the total value or even less, depending on how the annuity was designed.
Sometimes, it may be possible to sell your structured settlement, but some states may not permit it. If you consent to accept a structured settlement, it cannot be swapped for a lump sum payment, and you may not use the annuity as loan collateral.
Beware of people who want to take your money; you will want an attorney to be sure that you actually get awarded for the sale. The sale must be arranged in court and many insurance companies may not assign them to a third party. If you decide to sell your payments, discuss it with an experienced attorney. You should shop around for the best arrangement, as offers will vary from investor to investor.
Any party that offers to obtain your structured settlement is interested in doing so for speculative reasons. Buyers desire to make money on the purchase, and for them, that profit will be spread over many years.
For the most part settlement by way of annuities are quite flexible, and can be suited to just about any situation where the injured party requires a regular income for a period of years.
|
