Thursday, 15 August 2013

Understanding Structured Settlement Annuity

There are a number of options available for you to receive monthly payments on a structured settlement today. If you are working on making a decision about whether you want to receive a structured settlement annuity payment or you want a lump sum, you can use a settlement calculator to help you. The decision will be something that you alone can choose.
When you are receiving any type of monthly payment on a settlement , you will receive a specific amount of money from the settlement plus interest. This amount is not going to take into consideration the bills that you may have or other sources of income. Instead it will be based strictly on the amount of the settlement that is received.
Determining what amount you might receive each month is going to depend on the amount of the settlement and how many years it is set up for. Different types of settlements are structured differently. If you choose a lump sum payment, you will find that you receive a lower amount than you would if you had elected to receive payments.
Today you have the option to change your mind about getting payments on a settlement however. Most of them can be sold to another group for a lump sum cash payout. Some people choose to do this because the amount they are receiving each month does not cover their bills or they find they need a large amount of money for something.
The available options for any type of monthly payment will depend on the type of payment that you are receiving. Most can be sold to another organization for a lump sum, but there are some that are restricted. Finding out if your settlement qualifies to be sold will be the first step in the process.
Understanding structured settlement details is important in a number of ways. Because your structured settlement annuity payment includes interest, you need to factor this into what you might expect for a lump sum. If you choose to sell the remaining balance, you will not receive the interest that would have been paid over time.
Using a settlement calculator will help you determine how much interest you might be giving up. In a situation where you simply want to get all the money in one check, this might be a factor that you consider. However if you need money in a hurry, the amount of interest that you will be giving up is not likely to be a factor in your final decision.
When you find yourself struggling to make ends meet on a fixed monthly payment schedule, you can turn to Structured Settlement Quotes to help get your entire settlement one lump sum. When you receive monthly payments, there may not be enough to cover all the bills whether it is from a settlement or from some other types of plan. About the Author
About Us: Visiting Structured Settlement Quotes to get more information and to find out how you can get your cash quickly.
Contact us - 100 Pearl St 14th Floor, Hartford, Connecticut, United States
Phone no - 1-888-665-1257

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