Everyone,
including me, would often be anxious to know if the periodic payments would be
sufficient for our necessities. If you have a loved one who passed away and has
provided you with jurisdiction over their structured settlement payment, or if
you think you can use a lump sum to open up a business venture, you might think
about the option to sell your annuity. However, selling this periodic payment
is not as easy as trading stocks or your garage items. It is an intricate
process wherein you need the help of professionals and experts. Here are some tips
that I learned when I sell my structured
settlement annuity.
Take Things Slowly
One of the most
common mistakes that I noticed when I sell
my structured settlement annuity payment is that most people are in a
hurry. They often make a hasty decision that they will regret in the end.
According to the study, at least 1/5 of Americans face debt and sell their
annuity to settle their debt. However, if you do not take your time to analyze
your situation, there is a tendency that you will face a more severe problem in
the future.
Avoid Selling the Entire Annuity
You need to
remember that the structured settlement
annuity is one large investment. You are never obliged to sell the
entirety of your periodic payments. In my case, the professional recommended
that it be more beneficial to sell my structured settlement on a limited basis.
For those relying on their annuity as a major source of their income, think
about your situation and what will happen if you sell the whole thing.
Seek For the Help of the Experts
As mentioned
above, selling the structured settlement is a complex task. There are things
that an average person will not understand and will catch them off-guard, such
as the surrender fee, that might affect your decision and the result. To avoid
any surprise and get the best value out of my annuity, I decided to seek the
help of professionals to help me sell
my structured settlement annuity.
Consulting With Stakeholders
.jpg)
The average
household in the US carries at least $129,579 in outstanding debts. This means
that having a steady stream of periodic payments may help you overcome your deficit
in the future. Before I decided to sell my structured settlement annuity,
I consulted the people who are currently benefitting from my annuity. After
hearing their thoughts and opinions, I decided to create a plan according to
their input.
All in all, I
decided that it would benefit us all to sell
my structured settlement payments. I also consult family members and
some professionals in finance to ensure that I am creating the ideal decision.
Benefits of Selling My Structured
Settlement Annuity
Individuals who
are currently negotiating on a worker’s compensation or personal injury claim are
often presented with the option to receive a structured settlement payment. Basically,
this type of periodic payment is awarded to the plaintiff due to a court decision.
The aggrieved party will be receiving an annuity instead of a lump sum as an
exchange for all future liabilities caused by the damage or accident. Though it
may sound that structured settlement payment offers financial stability and
comfort, recipients usually find it a quandary, especially when thinking about whether
they should sell it or not. In my case, I decided to sell my structured settlement annuity. Those who will choose to sell their
structured settlement will realize its benefits.
Eliminate the Waiting Time
Some people do not
have the time to wait for periodic payments. In my case, it would be better for
me to sell my structured settlement annuity
to serve as capital for my business.
Recipients of annuity may think that receiving payments periodically seems
practical but getting a lump sum can support you in opening a new business
venture and a chance to be more financially stable.
A Great Form of Investment
It may be true
that the annuity is entirely tax-free. It does not quickly depreciate in time,
especially for individuals involved in a recent accident. These people can no
longer perform and function as the average people, and they need to seek opportunities
that will allow them to find a steady source of cash. In my case, I treated it
as a form of investment when I decided to sell my structured settlement annuity. Recipients
of annuity should also do the same thing and turn it into an investment that
will support them in the long haul.
Help You Get Out of Debt
Most of the recipients
of the periodic payments often find themselves in massive debt with their
inability to support themselves due to their job loss and injury. Aside from
that, previous expenses such as mortgage payments, credit bills, and hospital
fees accumulate over time. Getting out
of my existing debt is one of the reasons to sell your structured settlement payments. The holder of the annuity
will be able to receive their cash immediately upon settling on an agreement.
The money can be used to clear your outstanding debt, and you will still have
enough money to start a new venture.
The lump sum is
the first thing you need to consider when you decide to sell your structured
settlement annuity. Individuals should consider the company offering the
highest bid and most significant value for their structured settlement.
How do I sell my structured
settlement annuity?
Before selling the structured settlement, you need to consider
if the total sum will meet your entire financial needs compared to receiving
just a small amount of your structured settlement monthly. Once you are
determined to sell your annuity, the next thing you have to figure out is the
amount of money you may need. After that, you need to know the process when
selling your structured settlement annuity.
Preparing the Paperwork
The first thing you need to do is gather any paperwork
related to your annuity. If you do not have the proper documents, the buyer of
your annuity can aid you in producing copies of the documents and obtaining the
appropriate paperwork.
Getting the Estimate
The next step is to contact a buyer of the structured
settlement annuity. If you think of
selling this partially, ask them for a quote for selling a fraction of your
annuity payment. The annuity buyer can also help you get your annuity
information if you have no idea about how much you will regularly receive until
your annuity is overdue.
Accepting the Offer
After determining whether you need to sell a portion
of your annuity or the entire annuity to get the desired amount of money, the
next thing you need to do is inform the buyer that you are now decided to
accept the offer. When you are not satisfied with their offer, you can request them
to revise their quote.
Signing the Agreement
After accepting the offer of the structured
settlement annuity buyer, they will send you an agreement together with
other legal documents that you need to sign. Carefully review the details,
especially the terms stated on the contract, before signing it. If you find no
irregularities in the paperwork, you must sign it and return it to the buyer.
Court Order
Depending on the state where you reside, the buyer may
need to work with the court in your state to get hold of the order from the
judge that will reassign the rights of the structured settlement payment that
you sell.
The Annuity Buyer may send you a wire
transfer or a check
After the state judge releases the court order that
transfers the rights of the structured settlement annuity, the court order will then be returned to the
insurance company that initially issued your annuity. They will be notified to
send the payment to the part of the annuity that you sold to the buyer. After
the insurance company confirms that they received the order, the buyer must
give you the complete payment either through wire transfer or through check.
No comments:
Post a Comment