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Need Help With Your Structured Settlement?

What Are My Structured Settlement Annuity Options?

If you won a civil lawsuit and were awarded financial compensation as a result, the payout from the lawsuit may have been provided to you in the form of a structured settlement annuity. Rather than receive a lump sum amount at one time, the entire payout from the lawsuit may have been divided up into equal monthly installment payments that you will continue to receive over the course of many years or even decades. However, there are instances when it is preferable or even necessary to obtain some or all of the funds up-front. For example, if you have considerable medical bills due now, you need cash sooner rather than later. The good news is that there are some options available for your structured settlement annuity that you can consider moving forward with.

Benefiting From Ongoing Annuity Payments

anuityBefore you make any changes to your structured settlement annuity payments, it is important to understand the benefits of continuing to receive your payments as they have already been set up. Other options available are to sell your annuity for a lump sum amount or to obtain a loan on your funds that you pay back over time. While both of these options would result in more funds being available to now, you risk losing money over the long-term. This is because there are expenses and fees associated with both of these options that can detract from the net payout amount. Before you sell or get a loan on your annuity payments, consider a few alternatives. For example, you may be able to set up your medical bills on a no-interest payment plan, and you can pay your bills through your annuity payments. Each situation is unique, so it is important to fully consider all options available to you.

Selling Your Annuity for a Lump Sum Amount

Selling your annuity does have its costs, but there are also considerable financial benefits associated with having access to all of your cash immediately. For example, you may purchase a house outright with the cash, and you can eliminate a mortgage payment from your monthly expenses. You may be interested in starting a new business with the cash. For example, some people have been injured, which resulted in the lawsuit that was filed. You may no longer be able to work in your previous position, and you may need funds to start a new business or even to go back to school to train for a different position. Some may even purchase real estate investments that can generate a better on-going income stream than what the annuity payments are providing.

Obtaining a Loan on Your Annuity Funds

Metlife Structured Settlement Review 2You may want to continue to receive your annuity payments to enjoy the financial security the funds provide. However, you may also need access to more cash right now. You may be wondering if you can obtain a loan against your annuity funds. While you typically cannot borrow the annuity funds specifically, you may be able to apply for an installment loan. The annuity payments can be used as a source of income that is considered during the loan application process. This way, you can obtain the funds you need now and still benefit from ongoing annuity payments.

Depending on your short-term need for cash and your long-term financial plans, you may prefer to keep your annuity in place, or you may want to sell your structured settlement annuity for a lump sum amount. Each of these options has its pros and cons, so carefully review the benefits, drawbacks and related expenses associated with each one before you make a final decision about how to proceed.