Annuities seem like a wonderful option when you are dealing with a large amount of money that you are receiving from a personal injury claim, wrongful death, medical malpractice, or other negligence case. It is great to win big in these cases and it will always look enticing to take the annuity option as you get far more money in the long run.
However, there are definitely drawbacks to the structured settlement or annuity options. The most obvious drawback being that you have to wait for your money. If you need money now, this certainly doesn’t help.
To avoid this situation, figure out what is most important to you. You may be forced into an annuity and there is nothing you can do about it- but don’t fret, there are always other options. You can always sell a portion of the settlement or payment rights in order to receive a lump sum of money now. In the end, it is your money and you deserve to have it whenever you need it. It may do you no good to have it come to you in the future if there are financial goals you need to accomplish now. Granted, you don’t always get the most money if you choose to go this route, but it is definitely a good option for those need funds quickly and have no other resources to tap.