Getting Money for Your Structured Insurance Settlement

Mar 10th, 2014 by admin in Financial

Many people have a need for money today, but do not have many options available to get this money. If you are someone who has a structured settlement, it is possible to get a lump sum in exchange for a part or your entire settlement.

Common reasons for needing cash from a settlement

It is important that you understand you are selling the rights to future payments from your settlement. When this is done, you will receive a lump sum of cash from the structured settlement buyer, but your future payments from your settlement will be reduced or eliminated. However, there are many good reasons that people do this. One of them is to help pay for tuition in school. Whether this is for your tuition or a child?s, the cash can help pave the way towards a college degree. Other good reasons include buying a home or starting a business. In general, the best reason to do this is to invest the money in your family?s future.

cash

In order to get cash from your settlement, you will first need to get a few quotes from companies that specialize in this type of transaction. They can be found throughout the country, and many of them have a presence on the Internet. In order to make sure you are dealing with a reputable firm, you should make sure the company as been doing business for a few years. In addition, get more than one quotation. This will ensure that you are getting competitive offers, and you are doing business with a quality settlements firm. Be prepared to submit all of the documentation needed to provide an accurate quote.

Important elements in a structured settlement quote

There are three things to look at when getting a quotation. All three are important, so they are not listed here in order of importance. The first is how much of your settlement is under consideration. Perhaps you want to only sell half the rights, but you may want to sell all of it as well. You also need to look at the amount of money you will receive in cash. The last item is to compare the cash offer to the amount of money the settlement is worth as it exists right now. Of course, the settlement firm is going to offer less than the settlement is worth because that is how they make their money. The only question is how much are you willing to give up in order to get cash today.

Once you have an offer you like, there are several steps that will be taken. Basically, you will need to sign a contract with the settlement firm. After this, they will issue you a cash advance on the settlement, and the final step is to get the court?s approval.