Taking structured settlement payments after all the legalities have been put in order sometimes turns out to be the wrong decision. Insurance companies often prefer this method, so that they don’t have to shell out a lot of money all at once. It might start off as a decision that seems like it might work, but there are times when a lump sum of cash is needed. There are two types of structured settlement buyout options; partial buyout or full buyout.
Partial Buyout: Selling only a portion of your structured settlement payments will provide you with some instant cash, but keep the rest of your payments coming on a monthly basis. Sometimes a little extra money is needed to help make ends meet each day. Reasons for taking a partial buyout option might include adding money to an investment portfolio, in order to strengthen it, or it might be to supplement lost wages.
People who have suddenly lost their job might opt for a partial buyout, in hopes that this money will tie them over until another job comes along. This income of additional finds might be just what is needed to get a family over a slight financial hump.
Full Buyout: While it might have been easier to take a lump sum in the beginning, instead of turning it down for the payment plan, sometimes a lump sum isn’t even offered by the insurance company. If this is the case, then the full buyout option is one way around this dilemma. People who are needed money from their settlement to be in their hands as soon as possible benefit greatly from this payment option.
Having kids of college age requires quite a bit of money, of which can be gained from a full buyout. Other reasons for taking the full payment amount include; job loss, buying a new home, paying off debt, purchasing a car, making mortgage payments, remodeling a home, investment opportunities, or miscellaneous high priced purchases. There are times when money just can’t wait, especially in the event of an emergency.
Structured settlement buyout options are available to people who don’t wish to wait another month for their next payment to arrive. Companies that perform buyouts make a profit as well, since these are non-taxable transactions. You can easily get quotes from a few different companies to see which one will offer you the most for your structured settlement payments. Be sure to ask plenty of questions and choose a reputable company to work with.