Re-Evaluating Your Financial Needs
When you are awarded a personal injury claim it is normally set up as an annuity payment that is paid by an insurance company.If you are permanently disabled the guaranteed income stream can be a financial life saver.But time can change a lot of situations in a way that could not be foreseen.For example, you may discover after a period of time there are ways for you to return to work part-time or you decide to start a home based business.This means you are not dependent on the full annuity for income.
If you are currently receiving an annuity payment, it is good to periodically re-evaluate your annuity income.In many cases the annuity payments were originally used for medical expenses related to the injuries incurred that led to the original monetary settlement.If you recover from your injuries over time and the medical payments are no longer required, the annuity money can be redirected into other financial investments.
The one thing you should not do is view your annuity payments as set in stone.You can sell annuity payments and get a cash settlement based on the present value of your future payments.You can get all or part of the annuity and this should be factored into your financial evaluation.Getting cash for a structured annuity gives you control of your income now.
Related posts:
- Dignity and Self Sufficiency
- Financial Stress
- My Annuity Adventure Part V-Designing a Financial Plan to Manage Your Cash.
Submitted to Misc Stuff
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