When it comes to selling a structured settlement or annuity payments in exchange for a lump sum settlement payment, you have numerous options. You can:
- sell the settlement in its entirety
- sell a portion of it
- sell the right to receive payments for a specified period
Note the wording in the last point: “right to receive payments.” This is what you actually own, not the settlement or annuity itself. A structured settlement or annuity is owned by a legal entity, such as an insurance company or other Obligor; it is this entity that directs the disbursement of payments to you as beneficiary. What you do have – and what you are selling or transferring – is your right to receive these payments.
Most people choose to sell a settlement for a single lump sum. This structured settlement lump sum is less than they would receive if they had chosen to remain beneficiaries of the settlement (this is how the funding company makes its money). There are certain advantages to this for the seller if there are pressing, immediate obligations to be met or a particularly lucrative investment opportunity, or if the seller wishes to start his/her own enterprise and requires startup capital. It may also be advantageous in an inflationary economy, since dollars today will be worth more than then they will be in the future.
It is not necessary to sell the entire settlement, however. Depending on your needs, you can choose to sell a portion of it. This can provide you with a sizable lump sum from a cash settlement while leaving you with the security of a steady and predictable income stream. Similarly, you can sell your structured settlement payments for a certain amount of time, after which the rights to receive said payments revert to you.
CBC Settlement Funding can provide you with a lump sum cash advance for all or part of your structured settlement. Contact us today for more information on customized cash options to fit your financial needs.