Structured settlements or annuities are payments, often resulting from a lawsuit or investment, which entitles the owner to receive a set payment every year. There are a few differences: for example, people typically buy annuities as an investment to help manage their income in retirement. Among non-qualified annuity owners, most are female, and 80% have annual household incomes below $100,000. In comparison, structured settlements are widely used in product liability or injury cases; statistics show that more than a third of personal injury claimants are offered structured settlements. However, what both have in common is that they are typically unhelpful when it comes to short-term financial goals: variable annuities particularly have substantial taxes and insurance company charges associated with withdrawing funds early. For this reason, if you have a structured settlement or annuity that is unable to help you meet your short-term financial goals, it is often wise to sell your settlement or annuity to structured settlement brokers, who offer cash for structured settlement payments and annuity payments.
There are a number of advantages to selling your structured settlement or annuity: for example, in 1982, Congress adopted specific tax rules to encourage the use of structured settlements to resolve physical injury cases. Unfortunately, these tax rules seem to have resulted in defendants and their liability insurers saving anywhere between 10% and 30% in their payments. Therefore, by arranging to receive cash for structured settlement payments instead of collecting the payments themselves, you can simplify the tax process associated with these funds. Moreover, as previously mentioned, by collecting cash for structured settlements or annuities originally in your name, you can better handle short term financial goals or financial problems you may be experiencing.
Statistics show that most annuity or structured settlement owners are often reluctant to sell their payments: as many as 93% of annuity owners report that they still own their first annuity. However, if you are facing financial difficulties or need to access funds immediately, it may be more effective to simply sell your settlement or annuity for cash. If you are considering selling your payment, contact a settlement broker to discuss a possible transaction today. Helpful sites.