Working With Your Policy
We all want more financial freedom in our lives. Why might you? It leads to less stress, better health, improved relationships, and more options in life. Constantly worrying about bills and how to make ends meet has been shown to lead to numerous mental and physical health problems, not to mention the negative effects on your lifestyle and future.
Structured settlements were inherently designed to provide this sort of financial stability thanks to their tax-advantageous nature and the fact that they guarantee income over time. This is a result of the Federal Periodic Payment Settlement Act in 1982, which not only exempts structured settlement revenue from all income taxes, but applies to any earned interest as well.
Contracts for professional performers and athletes are similar in that when you sign the contract, you don't get the entire value of it all at once (they don't have the same tax benefits as structured settlements however). Instead, the total amount is paid out over time per the terms.
Sometimes though, life attacks and our circumstances change. Suddenly, your regular income stream isn't enough. You need cash and you need it soon.
Once you've reached the settlement or signed the contract however, it's final. You can't go back a year later and say "Actually I changed my mind, I'd like smaller monthly payments over a longer term."
You aren't totally out of luck though. You have the option to sell some or all of your structured settlement or contract payment, and you're free to use the money on whatever you want. Have high-interest credit card debt? Pay it off. Going back to school? Pay for your education. Home needs work? Time to remodel. Suffering an illness? Save yourself from medical debt. Regardless of the purpose, selling all or a portion of your structured settlement or contract payments may be the smartest route forward.