If you have a structured settlement but you need cash right now to take care of your personal or professional business, there are companies like JG Wentworth who say they can help you get fast cash for your annuities, lottery payouts, legal settlements and insurance settlements. Some of you, who may be considering accepting a large payout from these structured settlement companies, may think that it will be the answer to your immediate financial issues or concerns. Before you go giving up your structured settlement payment for lump sum cash, you should think about a few things.
How Does The Lump Sum Cash For Structured Settlement Industry Work?
When you need money quickly, companies like JG Wentworth and other structured annuity payout companies will give you that large sum cash payout you need. However, they get to keep about 10 to 15 percent of your money in return. Structured annuity or structured settlement payout companies collect what is called an "effective discount rate," which they are entitled to keep for helping you out of a bind.
Does It Make Sense For Me To Get A Lump Sum Payout?
Only you can answer that questions. Some things that may prompt you to accept a lump sum payout for your structured settlement or annuity may include the following:
- Emergency medical treatments
- High Interest credit card debts or high interest loans
- Defaulted Student Loan
- Late mortgage payments or property taxes
- Funerals or wedding expenses
- Moving expenses where you can't get the money from other sources
The list goes on. It is really up to you if you feel you are in that much need for money that you cannot wait and cannot do what you need to do without a larger sum of money. It may also make sense to take a lump sum payment from structured settlement company because in some cases insurers can charge very large surrender fees if you withdraw your settlement amount early. So in order to avoid those hefty fees, a structured settlement company may be a better option.
What Alternatives Are There To Structured Settlement Companies?