SSIA Agreement: What You Need to Know
The SSIA (Structured Settlement Investment Agreement) is a financial option that allows individuals to sell their structured settlements in exchange for a lump sum payment. Structured settlements are payments received over time, often as a result of a legal settlement or an insurance claim. These payments can be a valuable source of income, but sometimes circumstances change, and individuals may need access to a lump sum of cash. This is where the SSIA Agreement comes in.
In a typical SSIA Agreement, the individual selling the structured settlement agrees to sell the rights to receive the future payments in exchange for a lump sum payment. The purchaser of the structured settlement payments can be an individual or a company, and they assume the right to receive the future payments.
SSIA Agreements can be beneficial for individuals who need cash to cover unexpected expenses or who want to make a large purchase. However, these agreements do involve some risks, and it’s important to understand them before entering into an SSIA Agreement.
One of the risks associated with SSIA Agreements is that the lump sum payment will be less than the total value of the structured settlement payments. This is because the purchaser of the structured settlement payments assumes the risk that the payments will not be received as expected. To offset this risk, the purchaser of the structured settlement payments will typically offer a lump sum payment that is less than the total value of the payments.
Another risk associated with SSIA Agreements is that the individual selling the structured settlement may not fully understand the terms of the agreement. It’s important to read and understand the agreement before signing it, and to consult with a financial advisor or attorney if necessary.
If you’re considering selling your structured settlement through an SSIA Agreement, it’s important to do your research and carefully consider your options. Be sure to read the terms of the agreement and understand the risks involved. Consult with a financial advisor or attorney if you have any questions or concerns. With careful consideration, an SSIA Agreement can be a helpful financial option for individuals who need access to a lump sum of cash.