Cash Settlements: Cashing in on the Future

2007-03-08 10:33:40

( Financial )



Cash settlements differ vastly from cash cards, instant cash loans or the money market in that they are payments of cash today for the right to forthcoming or future payments. This means that you can exchange structured payments you are going to receive over a couple of years for a discounted cash settlement today. However, the amount of cash you will receive in lump sum is much smaller than what you would have received through a structured payment scheme.

Cash settlements can also be payment of life insurance policy benefits, dispute settlements, payments in exchange for trade securities certificates or finalizing of a property sale, also called closing, wherein the title is transferred from seller to buyer. In a cash settlement, you are in effect selling a portion or all of your future payments for the cash you need today.

A cash settlement:
- is not a loan but a cash advance;
- is not due until a settlement is reached;
- has no monthly payments; and
- cannot be subject to usury

If you have been injured, are facing a settlement lawsuit, need cash or have tons of bills which keep piling up, you may be in need of a cash settlement. However, searching for the right cash settlement can be tricky and confusing and may require the services of a financial professional or an attorney. A lawyer or professional can help you decide on a settlement designed to meet your immediate and future financial needs. Whether you need a monthly inflow of cash or a once-a-year lump sum payment, you need to work out a budget specially suited for your needs. You may think cashing in on your annuity for the money you need today is the best move, but what you do not realize is that this involves huge fees. Look into all alternatives and make sure the figures work in your favor.

While there are adverse opinions and objections raised against it, cash settlements are, for some people, the only means to obtaining immediate cash to meet emergency needs ranging from living expenses to huge medical bills.


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