When you use an annuity as an investment vehicle you basically invest now to get an income later. These products are designed to provide a regular source of income based on the investment that you have made over time or as one or more lump sums.
Why would anyone give up a guaranteed income source by selling his or her structured settlement payments?
Most people are contemplating to sell their structured settlements when they face an urgent need for money. It might be simple to make the judgment of selling your structured payments but this is one of the biggest decisions you will have to deal with.
Some people may be facing some kind of unpredicted financial need. As a rule of thumb, you are better off not selling your structured settlement payments. There are exceptions to the rule sometimes. And that’s when the immediate need of the cash is the situation.
You are always far better off keeping that guaranteed income from structured settlement payments for the future. But there are exceptions to the rule and you might later decide t sell it.
