Structured Settlement Secondary Market: Pros and Cons of Structured Settlement Secondary MarketPros and Cons of Structured Settlement Secondary Market
The structured settlement secondary market is the marketplace where structured settlements and other annuities are sold with the sellers receiving upfront cash in return. Do you have a structured settlement yet in need of cash? If you do, read our pros and cons of the market below to help you decide whether to sell it or not.
ProsFirst and foremost, the pro of such a market is that it allows you to sell your structured settlement, which may take months, years or a longer period to be paid in full. Rather than waiting for periodical settlements, you can get upfront cash when you sell your structured settlements.
In some cases, you can even sell a portion of your structured settlement rather than the whole of it. This allows for flexibility, which is especially useful when you are in need of cash immediately.
Other benefits of the structured settlement secondary market include;
- Liquidity where assets can be sold for cash or bought
- Definite and clear terms of investment, guaranteeing a stream of payout to the owners of the annuity as well as other beneficiaries
- The prices of annuities are based on the current rates of the market
- No volatility
- No sporadic fluctuation
ConsWhile there are many pros of such a market, there are also cons as well. Here are some of the cons of the structured settlement secondary market.
- There is an end date or a fixed term to every stream of payout
- Liquidity may make remarketing assets much more expensive
- Transfer issues as some of the transfers may be denied by the court