Disadvantages of Structured Settlements

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Structured settlements are often praised because the individual receiving them is guaranteed an amount of money for an extended period of time from top rated insurance companies. With a lump sum, an individual is more likely to spend the money at an accelerated pace spending the money sooner than they would if they were given a structured settlement. Structured settlements have many other advantages but there are some serious disadvantages of structured settlements as well.

Emergency Money
With structured settlements, an individual is only guaranteed a certain amount of money per month or year depending on how the settlement was structured. This would be comparable to a paycheck or disability benefits. They can count on it arriving in time, but if there is an emergency, the individual will not have access to more than what they’re guaranteed during that particular pay period. This is where selling structured settlement payments can help an individual come up with cash in a tight pinch. An annuitant should only cash out a structured settlement if it is the last resort.

At this time discount rates are at an all time low and an annuitant can receive a great deal but it would be in their best interest to keep their future structured settlement payments instead of cashing them out. There are times when there are no other options and you may need liquidity now, this is when a structured settlement transfer is needed. Please feel free to complete the form to the left to get a free quote now for your future structured settlement payment rights.

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This entry was posted on Wednesday, June 9th, 2010 at 7:08 am and is filed under Structured Settlement. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Disadvantages of Structured Settlements”

  1. Disadvantages of Structured Settlements says:
    October 11, 2010 at 1:44 pm

    [...] Structured settlements are often praised because the individual receiving them is guaranteed an amount of money for an extended period of time from top rated insurance companies. With a lump sum, an individual is more likely to spend the money at an accelerated pace spending the money sooner than they would if they were given a structured settlement. Structured settlements have many other advantages but there are some serious disadvantages of structured settlements as well. Share and Enjoy: [...]

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