How To get Cash for Structured Settlements

If you have a structured settlement and you need a lump sum of cash right away, you may consider getting cash for your structured settlement. You can sell your settlement to a private note investor or a lending institution. But keep in mind that this move is not without some risk. Read on to discover some important information about how to get cash for a structured settlement.



When you apply to get cash for a structured settlement, you have to keep in mind that this can be a complicated process. You should have a structured settlement specialist help you. This person may be an attorney or a financial professional that has had specialized training.



Selling your annuity payments will assign all rights to future payments to the institution that you sell your payments to. But it is important to remember that in most cases you can choose to sell your annuity payments in parts or you can sell the whole thing. For example, if your annuity payments are set up over a period of thirty years, you may choose to sell only two years worth.



The very first thing you should do before getting cash for a structured settlement is to figure out how much money you need. What are you going to be using the money for? Do you need to pay off mounting medical bills? Do you have high interest credit cards that are eating up your budget? Once you determine the amount that you need and what you need it for, you will have a clearer picture of how much of your annuity payments to sell.



The next thing you need to do is to get all of your structured settlement details together. You need to have the name of the life insurance company that backs your annuity payments. You also need to know the exact dates of payment disbursement, how much the payment is going to be and how many payments you have left.



When you meet with your investor you need to let him know how much money that you need and how many payments your are going to sell. He will take this information, calculate the present day value of your settlement and connect you with those individuals or organizations that can give you the most money for your annuity payments.



Before you try to get cash for a structured settlement, carefully weigh the pros and cons. Make absolutely sure it is something that you want to do. When you sell your structured settlement you are giving up future income. If you do opt to get cash for your structured settlement, use the money wisely.

Annuities After Retirement

The difference between people who look forward to their retirement and those who wonder if they will ever retire is the fact that the former group has made investments in annuities. There are two phases in an annuity investment, the accumulation phase or the period when you pay a premium or premiums and the pay out phase when you begin to receive income from the investment.

Annuities are designed to help people live independently and comfortably in their retired years and truly make them the golden years. Insurance companies offer individuals a chance to buy an annuity by making a one-time payment or several premium payments and assure them a certain rate of return that may be revised from time to time. There are many types of annuities that can be used to plan for your retirement and to ensure that little changes in your lifestyle after you stop working. The different types of annuities include deferred annuities, equity-indexed annuities and immediate annuities.

The income received from the annuity would depend on many factors such as the age of the investor, rate of return, etc. Women usually receive less income than men because they have a longer life expectancy. Also if partners hold the annuity jointly then the income received is lower.

Some features of annuities after retirement:

* Tax is deferred on annuities and is paid on the gains one receives as income from the annuity. Since one is in a lower tax bracket, the tax is thus affected. Also the gains from the annuity are taxed as ordinary income.

* Only the part of the income that is considered as gains are taxed and not the rest of the investment.

* After your working years you can decide to receive income from the annuity for the rest of your life or for a fixed period of time.

* The income can be received as the investor wishes, on a monthly, quarterly or yearly basis.

* In cases where people have not invested in annuities before their retirement they may choose to do so later. There is no age limit on investment in annuities. For such investors the immediate annuity may be the most appealing. The immediate annuity begins paying income to the investor virtually as soon as the annuity is bought.

* If required payment from an annuity can also be deferred until the investor is ready to receive it.

* If the retired person has a bulk sum of money then investment in an immediate annuity will supplement the other sources of income.

Your retirement can be secure and enjoyable by investing in an annuity. If you haven’t created a personal retirement plan with an annuity, it is never too late to start. Buy an annuity today!

Retirement Income Annuities

Retirement Income Annuities are ordinary deferred annuities, but with an additional feature...a decreasing term life insurance rider that provides term life insurance with a face amount that decreases each year the policy is in force.

The effect is that if the annuitant reaches retirement age...for example, 65...the decreasing term insurance death benefit expires and annuity payments begin providing long term income. If, however the annuitant dies before reaching this age, the decreasing term insurance death benefit is combined with the value of the annuity and then paid to the annuitant's beneficiary in any settlement option chosen.

A number of financial products now offer significant security for retirees. Consider annuity policies, which allow you to invest a chunk of your savings in return for regular payouts. Annuities got a famously bad rap in the 1990s because of their unfamiliar - and surprisingly steep - fees. Since then, the variety of products has grown and some of the fees are down, especially if you shop around. Moreover, today there is an annuity to suit every stripe, and many are "unbundled," allowing consumers to customize their annuity just as they might tweak a new car purchase to add side-curtain airbags.

Even with all the bells and whistles, annuities still roll out of the factory on one of two basic chassis. Fixed annuities yield a steady stream of income for a set number of years or the rest of your life. Variable annuities can also provide regular checks, but they tie the amount of your payouts to the performance of an investment portfolio. Both types allow you to choose whether to begin receiving payouts immediately (in monthly, quarterly, or annual installments) or at a later date. And both varieties pay out partly taxable money - you are taxed only on your gains, not your original investment - at regular income-tax rates, an important fact to weigh when considering annuities for your financial plan.

Just like a new-car purchase, you then start adding options. You can buy fixed annuities and tack on inflation protection for your payouts; you can choose to add a death benefit - or not. Some policies offer an option for long-term-care insurance, which raises your payouts if you become disabled. On certain variable annuities, you can opt to have your portfolio value (and thus your payouts) reflect your performance only in neutral or good years.