Cash Settlement: Cashing Out

2007-03-08 10:33:40

( Insurance )



FAST, EASY CASH

If you need to liquidate your assets and use the money for a particular reason, cash settlement is an option available to you if you. You can actually sell a structured settlement, an annuity settlement, or a viatical settlement if you have any. There are companies that will purchase these from you in turn for a cash settlement.

There are many lending companies that can provide you with cash settlements. They consider such purchases as an investment.

VIATICAL AND STRUCTURED SETTLEMENTS

In viatical settlement for instance, you can sell your life insurance policy at a price lower than its face value. Some people do this when they have life insurance but no qualified beneficiaries. If you have a life insurance, but your beneficiaries do not really need the insurance money, you can sell your life policy in return for a cash settlement and instead make use of and enjoy the money while you are still alive. The company who bought the viatical settlement will then pay the rest of the premiums and will then be the beneficiary of the insurance money upon its maturation.

These companies may also structured settlement for the same reasons. Structured settlement refers to the staggered payment terms that a court sanctions under a personal injury lawsuit. If you are the complainant and you win your case, you are entitled to receive compensation. Structured settlement is the deferred scheme by which you receive your payment. Structured settlement is usually paid over a period of several years with terms agreed upon by both parties.

If you want to cash out on your structured settlement and use the lump sum, a company will buy your structured settlement at a value lower than what is on the contract. Once they buy the structured settlement, the company then acquires the right to receive the payments as indicated on the settlement terms.


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