Why would someone sell a settlement for what would probably be less money in the long run? Lots of reasons, and they usually revolve around the immediate need for cash that only your future payments can cover. If you can provide proof of what your settlement is and how much you are owed, you will have enough information to at least start filling out some applications.
Now, back to the companies on TV that offer to pay cash for court awarded settlements even before you win the case. Can they do this? Sure, but read the fine print. After all, does it make sense that anyone is going to give you money you haven’t won yet? They say you won’t need to pay anything back if in fact you don’t win, but what they don’t tell you is there are some pretty hefty fees associated with not winning the case!
Another common cash for settlement segment is selling your annuity payments. An annuity is actually a form of an insurance policy – the insurance company is insuring your investment. In other words, your original investment won’t decrease in value. If you started your annuity a few decades ago your payments may now be at a point that doesn’t make much difference in your monthly bills; you might think selling the annuity is a great deal.
However, before selling your annuity or some of the payments, check with a financial advisor. This is your money already! It might make better sense to just pay the penalties associated with early withdrawal rather than losing even more money by selling them to a company who will pay you less than they are worth.
No matter how badly you need the money, read the fine print and get some professional advice before signing anything. It is usually recommended that you have an attorney look over it as well, so that you are certain everything is in order.