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January 6, 2014:
. Find out more about getting cash for your settlement checks.

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Annuity Buyers

Many different groups buy up settlements and annuities. They are smart people and know how to give you the worst rates, so watch out

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Learn about Annuities and Payments!

In many cases a lawsuit will be settled with an annuity which is also called a structured settlement. Instead of a lump sum payout, an arrangement is made to pay smaller amounts over time, either to lessen the financial burden on the paying entity, or to ensure that the plaintiff in a case is guaranteed an income over a period of time. In some cases benefits of these settlements can be tax avoidance, planning for injured or minor parties, or just to keep money for future needs. Many times people will even opt for annuities because they will be assured of income when other sources fail.

Other annuity payments are best known from prizes, contests, lotteries, or insurance payouts. Insurance companies use annuity funds to make investments, and therefore it is possible for ordinary people to buy these annuities as an investment. Depending on the annuity, there can be problems, as it is not always possible to borrow from the annuity's future value. In this case, people may be seeking a lump sum payment from brokers who specialize in converting small payments into available funds.

How you get your annuity payout should be heavily dependent on the amount you receive and what accounts you have available to you. Do you have a checkig, savings, or prepaid debit card account? If so, then you might be able to get a direct deposit or wire transfer. Otherwise, you are going to have to set up a bank account, but large payout checks typically take a few days to clear.

Notes and Special Information

Special note: The official opionion of this website is that it is better in the long run to stick with the annuity. Family members and friends may pressure you to take quick cash from a settlement, but then where will you be? A payout may indeed solve short-term problems, but unless you are financially savvy you are more likely to lose out over the long term. Living on a periodic payout may not be the most fun thing, but blowing it all in a month (or getting it taken by scavenging friends and relatives) is not going to improve your outlook when you are totally broke, and presumably unable to work and make more money.