Thousands of annuitants sell the rights to their annuity payments every year, but what can each of these individuals due to secure their financial future? The simple answer is to plan ahead for both the certain and uncertain events that will happen.
Annuitants sell the rights to their payments for a multitude of reasons, most caused by a financial situation such as debt.
Once a lump sum of money is received for selling their structured settlement, the last thing these individuals need is to be placed in the same exact position a few years later. If this situation were to occur again, the annuitant will either have to sell more payments or may have to file bankruptcy.
The purpose of selling a structured settlement is to eliminate or solve the financial dilemma the annuitant was presented with in the first place, but the lump sum should also provide some sort of security to enact a plan that will protect the individual from financial difficulties in the near future. Matching the financial strength of a structured settlement annuity is near impossible and all options should be investigated before selling the annuity away.