If you have been hurt in an accident and win your case, you will likely be getting a structured settlement, meaning you will receive a payment each month for a predetermined length of time. This is generally how insurance companies and workers’ compensation like to hand out the money for the settlement instead of giving you one large sum of money.
Periodic payments are made to you over time. Most of these settlements are paid monthly, but you may also receive yearly payments. This can be extremely comforting to know that you will be paid a monthly stipend for a length of time, but in some cases, you may need more money than your monthly payment is or may just want to get as much as you can immediately and be done. In this case, you may consider structured settlement loans.
Structured settlement loans are a nice concept. There are many companies out there that will “buy-out” your settlement for you and then pay you a lump sum of money immediately. The amount you receive from the buy out will not be the same amount as your settlement; it will be less. However, you will get all your money up front without having to wait for your payments to trickle in.
The benefit of settlement loans is that you will get your money immediately without having to wait. The structured settlement loan will keep you protected from inflation; most structured settlements won’t adjust with inflation and over time, future inflation could decrease your standard of living. Another benefit of structured settlement loans is that you will have investment possibilities. Receiving all your money from your settlement at once could allow you to invest in stock or a business.
Once you have decided that a settlement loan is in your best interest, decide whether you want to sell the entire settlement or just a portion. Most people don’t realize that when they sell their settlement (or get a settlement loan), they can sell a minimal amount to get that money you need and still receive your monthly payments. This is a great way to get immediate money but still receive a monthly income after the loan.
Structured Settlement Loans can be an option for people who are playing the waiting game during settlements. Contact Resolution Funding today for professional advice. For more information visit online.
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