Using Your Structured Settlement as an Emergency Fund

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Using Your Structured Settlement as an Emergency Fund Posted: 11 Aug 2010 04:00 AM PDT More than ever before financial experts are stressing that families should have enough funds to cover three to six months of regular income in case of an emergency.  Some money whizzes even recommend up to a full year of cash reserves saved up in a readily available savings account for those with unpredictable paychecks, like a small business owner or the self-employed. While this advice makes sound financial sense, in these hard economic times it is much more difficult.  But if you are the owner of a structured settlement, it's much easier to have access to cash.  Suddenly the mystery of where much-needed cash can come from is solved: Selling portions of your settlement.  But what constitutes a true financial emergency or a good reason to sell your structured settlement? Loss of income due to an accident. A medical accident can have the family breadwinner laid up in recovery for months.  In addition, new one-time costs can arise, such as a more comfortable vehicle or even an entirely redesigned ergonomically-correct home.  Not having the usual income to depend upon in order to make ends meet, along with costly new expenses is enough to throw any monthly budget in complete disarray.  Selling a structured settlement can provide the cash reserves needed to get a family back on financial track after a traumatic incident. Unexpected medical bills. Massive medical debt can accrue in the blink of an eye due to unforeseen circumstances.  And more bankruptcies are claimed over strangling and obscene medical bills than for any other reason.  A liquidated structured settlement immediately takes the stress away by acting as the family's cash emergency fund.  A reputable buyer can convert all or just a portion of the inheritance into cash for the sake of paying off big medical bills. Change in profession or career. Perhaps an injury has left you unable to perform the same type of job. No matter your age or financial need, all humans have a dire need to feel useful and needed, so a new profession is likely in order.  Using the sale of a structured settlement to invest in a more suitable line of work constitutes as a time to use the emergency fund.  And it could end up being more than what the physical therapist ordered – it could be a dream career you always wanted. A need for a more stable living environment. An accident could have left you or a loved one unable to climb the flight of stairs in your residence.  Or perhaps you are stuck with a smaller home that isn't big enough for making necessary lifestyle changes.  Selling your structured settlement to a well-known settlement buyer can create a cash fund large enough to make a down payment on a new home for both first-time buyers and those upgrading to a bigger residence.

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