A structured settlement can be beneficial to a claimant in many ways. There are times however when claimants have no other choice but to sell them. Selling structured settlements is a tough decision and entails letting go of all its benefits. If ever that point comes, here are a few tips to help you with it.

Before anything else, think long and hard – are you really going to sell your structured settlements? Structured settlements are highly advantageous because it provides a lifelong financial support. If not a lifetime, it could last you several years depending on the agreement. Handing over any leftover payout to an heir is also possible even after death. Once you sell them in full or partially, the benefits you will receive will be gone or reduced drastically.

Besides, selling structured settlements will only get you a portion of their actual value. If you have a settlement worth $200,000 for example, companies may offer you $150,000 at most to get them leaving you $50,000 short. The reason why you need to know all of these is so that you will be aware of its consequences.

Another tip for selling structured settlements is to know their benefits. Just as you are aware of its consequences, you should be equally aware of what it can get you. Even though selling it will get you an amount smaller than its value, do note the time it will take to get you that same payout if you just complied with the settlement. A $150,000 one time payout may be a rip-off from your settlement’s $200,000 value but that lump sum could take decades to acquire if you merely complied to the agreement. Decades may be time you don’t have for an immediate financial need. Whenever you bump into a financial crisis that requires you to shell out a large amount of cash, selling your settlement could help you. This scenario is an example wherein benefits outweigh the consequences of an action.

Lastly, try not selling structured settlements in full. If possible, only sell a portion of it depending on how much money you need at the moment. By selling them partially, you can suffer from less setbacks and still be able to enjoy the benefits of structured settlements. For example, you can sell just $50,000 worth of settlements to pay a debt of $30,000 and have the remaining amount continually given to you in the form of structured settlements.