You may want to consider a partial sale of a structured settlement rather than the entire thing. There are plenty of benefits to this idea for you to think about. The main reason that people sell their settlement is to get money now. They may have things they wish to buy, debt they need to pay, educational expenses, or a business that they want to be involved with.
Yet when a financial instrument like this is sold a person is going to get less for it than what they would over the course of the payments. This could be up to 30% less than what the overall value of it would be and that can add up to a great deal of money. Plus, not all people are good at handling a lump sum of money. If you get a full lump sum payout and spend it all then what are you going to do in the future for income?
With a partial sale of a structured settlement you may be able to only get a lump some for a part of it. That will give you the funds you need for the pressing issues at a hand. At the same time it will give you money coming on regularly to help you with the ongoing financial need you are going to have.
For example let's say that you have a 20 year structured settlement annuity in place where you get $ 2,500 a month over that span of time. With a partial sale of a structured settlement you can get a lump sum payment and then you will only get $ 1,250 a month for the next 10 years. This may be a way for you to get the best of both methods so that you aren't worried about financial concerns.
Another reason to get part of the money up front is inflation. Chances are your money will buy more now as a lump sum than if you get it in 5 or 10 years down the road. You can make some investments now too so that you have more money in the future that you can use for anything you need.