The Price is Right?
Structured settlements are a common financial option for those who have been injured or involved in an accident to receive periodic insurance payouts. These payments guarantee an ongoing income which allows financial security in times where many find themselves made redundant or without a continuous income. It has become common practice to sell a structured settlement to a buyer, who offers one big pay out in return. This is a tempting option for many who want to get their hands on a large sum in very little time – so how do you make sure that you are receiving the best amount for your settlement? There are a few points to be considered when looking for the best deal on your settlements.
When to Sell
A reason that many sell early, is that they are in a serious financial situation and need financial aid. Selling you structured settlement will help ease this burden significantly and is beneficial for those who need it. When looking at your finances, will the money made cover your financial necessities? Will you still have a sum of money left afterwards? If the money you will gain will not be enough to pay off your debt, it is best to avoid selling your settlement. Debt can easily devour its way through your savings, especially with the current high interest rates. It is best to consult a financial advisor who will help you decide the best way to pay off your debt.
However, if your financial necessities are moderate or low, it may be worth considering a partial cash payout. This would provide you with many advantages mainly; quick access to cash to pay off any debt and the guarantee of continuous monthly payments in the future. Investors revel in a poor market environment as they are looking to make money from those who are desperate enough to take a huge loss. Don’t let this get you down, as there are many reputable companies who stand by their clients and will ensure that you do not get bullied into a speedy decision. Finding a good company and taking your time is important to making the most from selling structured settlements.
What’s the Settlement Worth?
The bad news when it comes to selling your settlements is that no matter how good you may be at negotiating, you will never receive the settlements face value. The structured settlement payments are generally tax-free; however once the lump sum is accepted you may need to pay both state and federal tax. This could significantly reduce the settlement’s value. As mentioned above, sell only what you need. As this will allow you to guarantee fixed monthly payments from the rest of your settlement. It is also worth consulting your company to see the best option they can find for you. They may have a solution that you had not considered that would reduce your loss.
Who’s the Right Company?
When choosing the right company, there are a few things to keep in mind make sure – mainly that they are licensed and insured against loss. Check their customer reviews and look for any complaints made against them. Using the Attorney General Office and Better Business Bureaus records would provide you with invaluable advice on accredited and reliable companies. Even if the quote they give you is a little lower than another; choose the company which offers a personable experience, who answer your questions, explain the process and help you prepare for the best investment. The company you choose should also offer you a closing date guarantee; this is a schedule that predicts how long each step of the process will take and the date you should expect to receive your money. Any company that offers you an instant lump sum are a scam, and the process needs to go to court to be settled – avoid these companies at all costs!!
The most important advice is not to rush. Hurrying and accepting the first offer will rarely be the best option. So shop around for the best offer and do not agree to anything if you do not feel comfortable. It’s your money – so get the best price you can!
Mark Long is a leading financial advisor who specialises in selling structured settlements and pension plans. He provides advice for buyers who are starting out, and for those who are looking to sell a structured settlement.
Selling Your Structured Settlement for the Right Price