As a victim of personal injury, managing a lump sum of money, especially without a plan, can be difficult. Sometimes, you may end up misusing it before its intended purpose. The use of structured settlements has enabled victims to manage their finances well and secure their future. However, some instances can come along that require you to sell the structured settlement.
You can sell the whole settlement or a portion of the structured settlement, depending on the amount of money you need, to companies such as We Pay More Funding. If you are thinking about “how to sell my structured settlement,”it’s vital to research the best factoring company for the best offer. This article outlines the pros and cons of selling your structured settlement.
Structured Settlements Pros
Structured settlements come with many benefits that work for the victim’s best interest. When settling for a structured settlement, it’s vital to consider knowing both the pros and cons. The following as some of the pros of a structured settlement.
Tax Exemptions
One of the biggest advantages of a structured settlement is that you will be exempt from all federal and other taxes on income. This means that you can receive all the money, giving you a chance to make plans without worrying. This was an act by Congress to ensure the victims of personal injuries have their best interests met.
Does Not Restrict Other Forms of Aid
The structured settlement does not affect your ability to seek aid from other social services, such as SocialSecurity, Medicaid, and disability benefits. You can always apply to get such services without being questioned. This ensures money given as compensation is not affected or used for other expenses given by the state.
Beneficiaries Guarantee
If the recipient of the structural settlement dies, the beneficiary can continue receiving the benefits and all the future tax-free guarantees. If the recipient was a breadwinner, it helps keep those depending on them on the same financial level.
1. The Flexibility of Payment Length
The advantage of this type of payment is that it does not limit the coverage time. Some even benefit from structured benefits for the rest of their lifetime. You can schedule or defer a payments for future expenses you might anticipate.
Structured Settlement Cons
2.Can’t Change or Alter After Settlement Has is Final
The disadvantage of using the structured settlement method is that you cannot change the terms or renegotiate the payments once the settlement has been finalized. It will stay that way if you realize later that the terms cannot meet your needs or fail to include a certain component.
3. Limited Accessibility
Structured settlements are not easily accessible, especially during an emergency where you need cash fast. To get a lump sum for an emergency case, you have to contact a factoring company that will take time before receiving the money.
The Bottom Line
When deciding on whether or not to take the structured settlement, it is vital to involve a lawyer. Ask the lawyer any questions that you don’t understand before you proceed. Hopefully, the pros and cons above give you an insight into what to expect from the structured settlement.
