Should You Cash Out Your Structured Settlement?

When you receive a structured settlement or annuity, it can provide financial security for many years. But sometimes, life throws you a curveball and you need a large sum of cash right away. In these cases, cashing out your structured settlement may be the best option. RLS Funding helps beneficiaries of structured settlements or annuities obtain the funds they need to avoid financial hardship and potential damage to credit ratings.

A structured cash or lump sum settlement is a viable option that can help people financially without the added stress of having to return the money. When consulting with those with structured settlements, RLS Funding is responsible for purchasing the settlement for a lump sum. You can sell your structured settlement to a factoring company for immediate cash. While you must first get court approval, you have a legal right to withdraw your payments, either in part or in full, to a structured settlement buyer.

Depending on the terms of your structured settlement, you may also be able to sell survivor benefits. If you're considering cashing out your structured settlement, it's important to make sure you have a good reason for doing so. It might be worth it if you need to pay for immediate medical care, pay off a mountain of debt, or buy a home. Your lawyer who represented you in the court case that led to your structured settlement can help you decide if cashing out is the right decision for you. When a person first accepts a structured settlement, they are forgoing an immediate cash payment in exchange for regular future payments. If your court case ended with the receipt of a structured settlement, you know that those periodic payments can provide stability and a reliable revenue stream.

But if you don't have a traditional savings account full of cash, don't feel bad because it's not just you. Structured agreements are often designed to take into account your future income needs, ongoing medical bills, your income from other sources, and other future financial obligations, such as college tuition for your children. Withdrawing your annuity or structured settlement can help you be better prepared for any financial situation that arises in your life. Many homeowners choose to sell a portion of their payments, allowing them to get cash for settlement now while continuing to receive income in the future. You will need to appear before a judge, who will decide if selling your structured settlement payments is in your best interest. If the discount isn't too high and you have a good reason to sell your settlement, cashing out may be the best option for you.

If you can't find the answers you're looking for in the list of FAQs below, contact a structured settlement buyer to discuss your options. Despite what was happening in the economy, there were always people looking to sell annuities, structured settlements and lottery winnings. Cashing out your structured settlement can help you avoid financial hardship and potential damage to credit ratings.