Many times, when there is an insurance or workers’ compensation claim, the winnings are paid as a structured settlement instead of in lump sum form. This is done for many reasons. First, the company that must pay doesn’t have to come up with all the money at once. The second is that the winner will get a little money each month or whenever payments are due, which can help with living expenses if the person cannot go back to work.
Sometimes, annual or monthly payments just don’t work for everyone and there is a way that you can get a large amount of money by selling your settlement to a structured settlement funding company. If you continually find yourself waiting for your money because you’ve ran out, then you may want to consider selling the funds you received to a company that will give you a large sum all at once.
Reasons to Do This
Before going to a company that buys structured settlements, you will want to determine your reasons for wanting a lump sum. Many choose to start up a business, and will need capital to get started. Getting a lump sum will help you start up that business. You may not receive enough money to live comfortably on a small amount you receive. This is problematic, because bills will continuously pile up and you could get into big trouble.
Whatever reason you have, you should definitely consider all the pros and cons. You are not asked by the funding company what your reasons are, but it is helpful to know for your own peace of mind.
Ways to Do This
There are two ways to sell your settlement, including selling the entire settlement at once or selling a portion of the payment.
If you sell the entire settlement at once, you will generally get a larger amount. However, you cannot go back and sell any more because there is nothing left to sell. This works for most people who need a lot of money immediately for some purpose, such as owning a business or those with a lot of extra bills.
If you sell a portion of your payment or one payment at a time, you can still have money to live from with the settlement and get an extra bit of money when it is required. This works well for people who have varying bills each month or needs something extra for an emergency situation.
If you are interested in structured settlement funding to get one sum of money or have a little extra one month, visit Resolution Funding to learn how.
