For middle income families, the path towards receiving a structured settlement can be a long and stressful one. Of course, once the arrangements have been made and the annuities start to kick in, it’s safe to say that the worst of the matter can be put behind a person. However, there are other options available when it comes to this type of settlement that could end up becoming more beneficial than the settlement itself.
Perhaps the last thing on most people’s minds is the idea of handling a structured settlement by selling midway, but this is actually a common practice that opens up more financial possibilities compared to keeping the existing arrangement in place.
Below are three the benefits that typically come with the decision to opt for a structured settlement cash payout.
Ideal Source of Money for Emergencies
Receiving lump sum payments instead of smaller scheduled payments over time makes it much easier for families to have instant access to funds in the case of an emergency. Because emergencies tend to happen when least expected, it helps to have the money available when a family needs it most.
Whether it’s a more serious emergency, such as a hospital stay for an illness or injury, an important repair to a vehicle or home, knowing there is money to cover these unexpected costs dramatically lowers the levels of stress a person would normally face in any of those situations.
Helps With Budgeting
Receiving scheduled payments over the years may sound appealing at first but since bills and other expenses can’t wait, such an arrangement could end up becoming more of a burden. Selling a structured settlement means having the money when a person needs it and the freedom to use it when they want it and how they want it.
Coming into lump sums of cash is great for budgeting needs for a household of any size. Families getting ready to invest their funds into a child’s college education serves as a prime example where having access to a large amount of money can come in handy. The cost of a higher education certainly hasn’t gone down in recent years and doesn’t look like it will anytime soon.
College bound students planning on attending a school with a high sticker price, such as UC Berkeley in the San Francisco Bay Area, could greatly benefit from the sale of a structured settlement.
Freedom to Spend Your Own Money
One of the biggest benefits to selling a structured settlement is that the recipient gets their money to do with as they please. Waiting on funds can be inconvenient and sometimes all a person wants is to have their money ready and available. Selling a settlement accomplishes that with a lump sum to pay off college loans, pay for tuition, or the variety of expenses that come with attending college.