Receiving a structured settlement from a lawsuit or lottery winnings can be a confusing situation. On one hand, you’re relieved that you will eventually be paid the money you deserve, but it can be frustrating to not be able to access your settlement cash when it is awarded to you.
As the recipient of a structured settlement, you should be aware of all the ways you can access your settlement cash. Settlement recipients choose one of the following options based on their personal situations, and you should only make a decision after consulting with an experienced settlement expert.
- Continue to receive fixed payments. The concept of structured settlements was introduced in the mid-1950s to early 1960s. In short, your settlement will be paid out over a number of years (often up to 50) in fixed payments. While the payments carry certain tax advantages, you are unable to obtain large chunks of your settlement at any one time without selling some or all of your settlement for a lump sum payment.
- Pre-settlement funding/partial advances. By receiving a partial lump sum payment from your structured settlement before it is completely settled, you are able to access your settlement cash in higher volume while allowing the rest to be distributed via fixed payments. Pre-settlement options are ideal for people who have an unforeseen financial burden arise but do not have the means to pay for it due to high legal fees or other circumstances.
- Receive a huge lump sum for your settlement. By selling your entire settlement for a lump sum, the rewards are simple; you can finally live the life of your dreams. You can afford higher living expenses and eliminate hefty amounts of debt. The average household in the U.S. has a staggering $7,200 in credit card debt, and 62% of Americans are unable to cover unexpected life expenses. Your lump sum can be used however you wish, and the possibilities are endless.
Talk to an expert and see which of these options will work best for you. You may be surprised at how much your settlement is worth, and being able to access your settlement cash now could change your life forever.