A typical annuity settlement comes slowly over time. This might seem like a good thing but life rarely waits. While a steady sum may build up over years, it isn’t always enough to handle situations that arise quickly and can spiral out of control. Annuity fees over a given year can be 3%, after all. This can seriously limit the amount of received money, whether from a lawsuit or lottery winnings. Sometimes selling an annuity settlement to receive an immediate lump sum is the best course of action. It just depends on the specific situation.
Medical Debt
Often times medical bills can pile up, especially for families or those with disabilties. Overdue medical bills seriously damage up to 20% of credit reports, many of which would have been sterling if not for the unavoidable fees. Injuries or illness can come on without warning. Neither disease nor loss of limb gives time for the assailed to financially prepare themselves for whatever might occur. Almost 35% of U.S. citizens have reported being saddled with difficult medicals bills in 2014, ones that many of them couldn’t pay and would have trouble paying over multiple months. In these circumstances, getting cash for the structured settlements would have freed them from these binding obligations almost immediately.
Educational Difficulties
Education in the United States can be incredibly expensive. While many institutions offer some sort of financial compensation for talented students, many of these aren’t enough to cover the overall cost of the institution itself. Between 2014 to 2015, student debt jumped from 1.2 billion to 1.3 billion dollars, further stacking the deck against students. While it is possible to pay off some of these debts with long-term annuities, the annual debt-climb shows no sign of slowing. No matter how much money the recipient might be entitled to, it might not be enough if received year to year. Selling an annuity settlement payments is an easy method to pay off all the money directly instead of waiting for the prices to skyrocket. It’s always better to tackle the present problem than wait for the unknown to occur.
Home Bills
Selling an annuity settlement is also a great solution for possible mortgage issues. Mortgage assistance can often require 20% of the sale price. A lump sum from another source can help pay that off so the homeowner has less financial obligation to worry about later. In the race between lump sum versus annuity, it’s often better to go with the option that will pay off in the short term and provide security for the long term. An annuity that’s immediate rather than drawn out may provide payments within 30 days, a surprisingly fast turn-around rate for those who might be in dire need of a new home. This type of settlement can also be beneficial to those undergoing legal matters that intersect with the home, such as divorce or child custody. A quick solution to these difficult domestic problems is best for everyone and getting cash for structured settlement can speed that recovery along.
