A structured settlement is an agreement in which an insurance company agrees to pay an injured party a predetermined amount of money for a fixed length of time. A fixed sum payable at specified intervals is known as an annuity.

Payments in a structured settlement annuity can be made for the duration of a claimant's life. Structured settlement payments may be in equal installments, installments of varying amounts, or lump sums. Structured settlement annuity is income-tax free and guaranteed by contract.

Selling structured settlements allows you to exchange installment payments for a lump sum of cash. There are various legal financing companies who specialize in selling structured settlements; they will pay part or your entire structured settlement annuity in exchange for a lump sum of cash.

The cash value will be less than what you would receive in long term installments. However, the advantage of selling structured settlements are that you can get immediate money to put directly toward other goals, such as purchasing a home, covering college fees, starting a new business, or paying off debts. You can also invest the money and collect interest on it now.

Sometimes people consider selling structured settlements when there are unexpected expenses, such as a sudden illness or divorce. Whatever the reason, having a structured settlement annuity gives you the power to decide how you would like to receive your money.

When selling structured settlements, it is your choice when and how to do so. You should select a time that is in your best interest. A settlement annuity in steady payments may provide you with financial security so selling structured settlements should not be considered lightly.

The insurance companies who pay annuities are not necessarily in favor of people selling structured settlements. It is in their best interest to pay as little as possible to let the rest of the annuity make interest that they keep for profit. Therefore, getting lump sums of cash from a structured settlement gives you the opportunity to invest and gain interest on the money instead of the insurance company.

A settlement annuity is a legal way for you to tap into your own cash flow to help you meet your financial obligations or goals. Carefully researching legal financing companies that can make this process smooth, easy, and efficient is important. The decision of when and how selling structured settlements will fit your best interest is then completely up to you.

About Author: Cash Flow Investment Partners (CFIP) brings you the best of structured settlements, annuities, lump sum settlements and much more. Potential customers fill out a simple evaluation form and we do all the paperwork required to get them cash for their annuity, a lump sum pension payment, or a lump sum payout in exchange for lottery payments. For more information, visit www.lumpsum-settlement.com