When To Sell Your Structured Settlement
By David Springer, Thu Dec 8th

A structured settlement often follows a life changing incident,whether it be positive or negative. Due to these circumstances,you may be faced with the need for a large lump sum paymentrather than small monthly payments over a number of years. So,where do you turn? To a company that can buy your structuredsettlement from you and turn it into an immediate payment thatyou may use on whatever you see fit.

Each individual has different reasons for wanting to sell theirstructured settlement, however, first you must decide if it isthe right decision for you.

The Benefits of Selling Your Structured Settlement

A large portion of those who receive a structured settlement canbenefit from selling it for a lump sum payment. The situationslisted in this section represent possible circumstances ofindividuals that may get the most rewards from selling theirstructured settlement.

· If you cannot wait to receive small, spread-out payments overa long period of time due to a dire financial situation or heftymedical bills and/or lawyer fees. Many of the situations thatcan bring about a structured settlement can also stick theindividual with such obligations.

· If you and your family decide that this is the time to finallymake that large purchase that you have had your eye on. Forexample, if you have previously been denied mortgages or loansand would like to take this opportunity to buy that dream homeyou have always wanted. Or if you have a child or children whoare preparing to go off to college and you fear you may not havethe financial means to support that dream otherwise.

· If you have talked with a financial advisor and both of youfeel that you could profit more by investing a lump sum payment,rather than waiting on monthly payments. If the money isinvested properly, there is a chance that you could end up withmore money in the end than your settlement was ever worth.However, this should not be a plan that is entered into lightly.You should work closely with a financial specialist and feelconfident that you have found a great opportunity to invest in.

· If you are of older age and feel that you may not be aroundlong enough to receive a fair amount of your structuredsettlement. You may want to the chance to enjoy the benefits ofyour settlement or may want to secure part of it for your familyafter your passing. This way you can distribute the funds as yousee fit instead of relying on lawyers or courts.

· If you don't plan to use the money right away, but wouldrather put it into a savings or money market account to drawinterest. This would be best suited for someone who has a veryhefty settlement, can find an account with large payoff terms,and plans to keep the majority of the money in the account formany years.

No matter what your reason for wanting to sell your structuredsettlement, choosing this option puts you back in control ofmoney that is rightly yours. The problem that many individualshave with their structured settlements is that the control overtheir money is left to lawyers, courts, and the company orpersons paying out the settlement. You are now able to saywhere, how, and - most importantly - when you spend your money.

The Drawbacks of Selling Your Structured Settlement

For a few individuals, selling their structured settlement andreceiving a lump sum payment may not be in their best interest.One must also evaluate these situations and determine if theyoutweigh the reasons you are considering selling your settlement.

· First and foremost, selling you structured settlement meansthat you will receive less money than you would if you were tokeep it. However, for many people considering this option, thisseems like a win-win situation - they will get one large lumpsum payment and the company they sold it to will make a profitin the end. The good news is that since you have severalcompanies competing for your settlement, you can choose the onethat will give you the a portion of the full settlement that youcan live with.

· Because you may lose out on a substantial portion of yoursettlement by selling it, if you are in a financial situationwhere regular monthly payments will only be a bonus on top ofwhat you already make, waiting out your settlement may be inyour best interest. However, if you're a senior, then you shouldalso take your age and the length of your structured settlementinto consideration. This would be the ideal situation forsomeone who is young enough that they have a great chance ofliving out the life of their settlement.

· If you are a person who is poor at managing large sums ofmoney, then selling your structured settlement may not be rightfor you. For example, if you are the kind of person who gets alarge paycheck every two weeks and finds themselves running lowon available cash at the end of those two weeks, then that maybe an indication that needs to be closely looked at. In thistype of circumstance, having your settlement portioned out toyou on a monthly basis may keep you from spending it tooquickly. Once your settlement is gone, you will be back atsquare one.

· For those reasons, you should also not consider selling yourstructured settlement if you have an addiction to gambling,shopping, or drugs.

· If your settlement was due to an accident that has put you outof work and the funds from it will replace your monthly income,then keeping the payments on a monthly basis may help yourfamily keep your finances in order. However, even in thissituation selling your settlement may be best for you if youwould like to renegotiate your payments into a larger sum eachmonth to shorten the life of the settlement.

Most individuals receiving a structured settlement can benefitfrom selling it to a company that can give them a large lump sumpayment or shorten the life of the settlement, especially ifthey are older persons, an individual who has enormous expensesdue to an accident or court case, someone in a criticalfinancial position, or one who wishes to make a large purchasefor themselves and their family. Finding the right company withterms that fit your needs is a key component of making yourexperience with selling your structured settlement a positiveone.

About the author:David Springer is a consultant for Sovereign Funding Group.Sovereign Funding Group is an experienced, reputable companythat offers convenient, no-risk services to help you with theselling of your deferred payments and business financingincluding structuredsettlements.