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The Benefits Of A Structured Settlement

Many of you reading this will be wondering what a structured settlement is, in a nutshell it is when a company offers you a sum to buy from you your settlement. Next question will be, “what do you mean by settlement”, answer: say you have a crash or a court case or even win on the lottery and you are set to receive 5,000 each month for the next 50 years until your sum is reached.

What a structured settlement quote will offer is a lump sum that is at a reduced value compared to what you would receive if you waited and they buy from you the agreed amount per month. It is a win, win situation, you receive often a large lump sum and the other company makes long term profit, but obviously as a huge company it won’t be a problem receiving it incrementally.

This article will highlight the benefits of accepting the lump sum and what companies are out there to offer you the best deal.

Live your Life

With a lump sum of money there are a lot of things you can do with your life. While incremental payments are a sensible thing long term they don’t really give you the access to the money in a way that can allow you to live your life properly. It is important that you only take the lump sum if you are in a financially stable position on a monthly basis, for example if one of you works or you have another way of keeping the money rolling in.

Many people will read this and think its irresponsible taking a lower about for the money in a lump sum but I truly believe it is worth it. You only live once and the way in which you receive structured settlements are often very fortunate or by some form of compensation, in other words a manner that hasn’t involved hard work.

My view is that as long as you have a sensible head on your shoulders and you spend the money in the right way, enriching your life, then I don’t see any problem and actively encourage you take the offer of a lesser amount that companies such as Structured Settlement Quotes offer.

Why Wait

The benefits of waiting are that you ensure a secure income each month; while this is great for the first few months you will soon realize your wants are not insatiable. £3000 a month won’t be enough to keep the lifestyle you have and you will want more and end up getting into more debt knowing that money will be coming in.

With a lump sum you know where you stand and can budget long term for yourself.

Can help you and others

Having a lump sum can help you help out all those people that you have been meaning to. Treat the family members and friends you always wanted to and go on those dream holidays you wanted to. I say why not, as long as you aren’t stupid you can live off the interest and thus still can use it to pay the bills.

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Andrew is an author who loves to write about finance and saving money. He has over 10 years industry experience.