03 Sep 5 Events to Sell Your Annuity Settlement
Selling your annuity or structured settlement is a great way to obtain cash — cash that you can use immediately. The annual income provided by a settlement or annuity is nice, but emergencies are unavoidable, and sometimes you can find yourself strapped for cash with a big expense looming. Here are a few of those situations and reasons for making the sale.
You’re on your morning commute to work, when suddenly a man riding a scooter appears in front of you as you turn a corner. Relax, you just clipped him. But he was in a crosswalk and you’re going to end up footing the bill for his fractured tibia. The average claim for a bodily injury in an auto accident was $15,443 in 2013, while for property damage it was $3,231. In this scenario your bill will probably be less than 15 grand, but between court fees, insurance fees, and the eventual payout you’ll have to come up with several thousand dollars, at least.
Sometimes, you need money for happier occasions. For example, imagine you’ve met the love of your life and it’s time to start a family. Did you know that the average cost of a wedding ceremony in 2014 was $31,213? Even if you can swing that — perhaps with the help of your parents or your future spouse’s parents — it’s likely that sooner or later the stork will visit, leaving behind a hefty bill. Doctors’ fees and hospital charges alone for a normal delivery average $9,700 ($12,500 for a cesarean section), according to the Kaiser Family Foundation. And that’s just for the birth — the average lifetime cost of raising a child was $245,000 in 2013.
If you managed to hold on to your annuity or structured settlement through the wedding and the birth of your child, that’s great. But maybe you did so by working long hours, traveling for your job and throwing yourself into your career — and now your neglected spouse wants a divorce. According to divorce360.com, two industry experts said the average cost of legal fees in a divorce can be from $2,500 to $10,000. A contested divorce with children and extensive assets is going to cost you up to $100,000.
Now you’re old, tired, and growing increasingly sick from the stress and depression following your divorce. Soon you’ll be one of the two million people who file for bankruptcy due to unpaid medical bills.
The moral of the story? Life is expensive. If you’re facing any of the above scenarios, it might be time to consider cashing in your structured settlement or annuity, in order to gain access to the money you’ll need to see you through these major life events.