Most benefactors would like better control of their settlement but often these court cases are drawn out for years and the beneficiary wants to end it and move on with their lives. By selling all or part of a settlement the beneficiary can take advantage of investment opportunities and control short term financial difficulties. In almost all cases the benefits of a partial sales outweigh those of a full sale. The present value calculations and inflation are two of the reasons why partial sales or incremental partial sales make financial sense. The Risks Inflation Inflation constantly erodes the purchasing power of every dollar we own.
Inflation continues to compound upon itself year after year.
It s very unlikely that an insurance company will fail to make a timely payment or miss payments completely, however it is possible. Be sure the company you settle with has an extremely good rating. He has received the first two years of payments. Because the monthly payments are only going to be paid if the beneficiary is alive, the investor requires that she buys a decreasing term life insurance policy with the investor listed as the beneficiary. Decreasing term is very inexpensive and the value of the policy is written just to cover the investors return-no more.