In the vast majority of legal cases — anywhere from 80 to 92% — a settlement is involved in some capacity. In fact, more than 90% of cases that go to trial end in a victory for the plaintiff.
So if you’ve recently been awarded money in a lawsuit, worker’s injury case or any other form of legal compensation, you’re certainly not alone. In most cases, you won’t get all your settlement money at once. You will most likely get your settlement money in a series of structured payments that you’ll receive over the span of a few decades.
However, a growing number of companies will buy the rights to these structured settlements, giving people just like you the lump sum of their settlement. Because of this, more and more people are looking to get cash for settlements rather than wait for their structured settlement payments.
Are you unsure if you’re making the right choice to sell your structured settlements in exchange for a lump sum? To help get a perspective on why people choose to sell their structured settlement payments, here is a look at the the three most common situations when it’s beneficial to get cash for settlements:
Financial circumstances change
The most common reason why people choose to get cash for settlements is due to a sudden, unexpected change in finances. You could be dealing with mounting debt, unexpected medical expenses, the loss of your job or a number of other situations. By selling your structured settlement payments in exchange for a lump sum, you can recover financially immediately without having to wait for the problem get worse.
If a person is diagnosed with a terminal illness or serious health condition, it might be wise to seek cash instead of structured settlement payments. This is especially true if the payments will likely continue past the individual’s life expectancy. By getting a lump sum, people can allocate their posthumous finances more easily and give their families much-needed peace of mind.
Investment opportunities open up
Lastly, many people choose to sell their structured settlements as a way to expand their investments and grow the money they received in their settlement. Mutual funds, stocks, real estate and many other investment opportunities allow people to grow their money, rather than waiting several years to receive it in increments.
Have any other questions or thoughts about getting your structured settlement cash now? Feel free to share with us and get a discussion going by leaving a comment below.