Many individual investors do not realize that they can participate in structured settlement annuities without being involved in the original litigation case. This is not to say that the investor must somehow become involved in the court case, but simply that they are able to participate in the benefits of the settlement annuity structure. Buying structured settlement investments is an excellent way to not only assist the annuitants in the case, but to provide a high yielding investment in annuity income payments.
The annuitant of a structured settlement can sell all or a portion of their annuity contract should the need arise. While the court does not openly suggest this as an option during the settlement, sometimes the need for a lump sum of cash occurs with the annuitant. In theory, a steady stream of income payments is a great way to ensure income for the lifetime of the annuitant. In practice, the need for an immediate lump sum of cash to cover unanticipated expenses often occurs.
Although selling the annuity is not necessarily a pain-free process, it is possible for the seller to find a willing buyer for their payments. To sell a structured annuity, the sale must be approved by a judge in the court system. They have to accept that the annuitant has a genuine need for a lump sum of cash and that the sale of the annuity is in their best interest. The court is not interested in the seller becoming a ward of the state in the future, and do not want their annuity sold for frivolous purposes.
From the perspective of the investor, it is a great opportunity to purchase a stream of fixed annuities income for a discounted price. If the investor has the cash on hand to purchase the annuity payments, they can bypass the typical fees, commissions, and costs of purchasing the annuity through traditional channels. The investors has a great opportunity to receive high yields will little more risk than a standard annuity contract.
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