When a person is wins a settlement and is owed money the settlement is often paid out over time. When this occurs it is known as a structured settlement. Structured settlements can be beneficial for both parties involved in the payment. The paying party does not have to pay a large amount immediately, and the receiving party has future income that they can rely on.
Personal injury suits, insurance payments, and lottery winnings are several times that structured settlements can be awarded to an individual. The resulting payments are then made over a specified period of time until the full payment is made.
While structured settlements are advantageous for many people, there are times the receiving party wants or needs a large lump sum payment. A lump sum payment can be used in the short term to take care of a variety of things. People often want them to clear up debt, pay for education, or purchase a big ticket item like a house or car. To receive a lump sum payment a person can sell their structured settlement.
There are many companies that will purchase structured settlements. The company will pay the person a large lump sum for the structured settlement. This provides the individual with money that they can use right away instead of waiting for the payments to come from their structured settlement.
With the large number of companies willing to purchase your structured settlement, it is important to make sure that you receive a good value for your settlement. Some of these companies purchase your settlement from you and then sell it to a bank for a profit. These companies act as brokers between you and the bank and effectively charge you a fee for selling your settlement.
The most effective way to sell your structured settlement is to deal directly with a bank and cut out these brokers. Selling your structured settlement to a bank can help you get the highest return for the value of your settlement. Dealing with banks also helps you know that you are dealing with an established company. One bank that buys structured settlements is AnFed. AnFed is a division of BofI Federal Bank, which is a publically traded company (Nasdaq: BOFI) that is FDIC insured and federally chartered. Working with a bank can help you get a good return on your sale.
Structured settlements are an effective way to settle payments, but they are not always what the person receiving the payments wants or needs. If the recipient wants a large lump sum payment instead of a structured settlement, they should sell their settlement to a bank to get the best lump sum available.
