Cash for Structured SettlementA structured settlement is financial agreement that one accepts to resolve personal injury lawsuits or periodic payment obligations. Some of these payment obligations may come from lottery winnings, lawsuits, long-term annuities, and more. Structured settlements are often called "periodic payments" which guarantee future payments in installments. These structured settlement payments ensures that one does not end up like the 90% of people who receive lump sum payments and have none of the money remaining after five years.
Typically, the claimant and defendant come to a legal agreement resulting in the dismissal of the lawsuit in exchange for the claimant to receive payments over a period of time. For the funding of this, the defendant typically chooses to purchase an annuity or it delegates the payments to a third-party.
In the purchasing of an annuity, these usually come in form of a life insurance annuity. Doing this, the defendant offsets the obligation with a matching asset. If the defendant chooses to go the third-party route, it's because they do not want the settlement on their books. This latter option also benefits the claimant, as the claimant does not have to rely on the credit of the defendant as a creditor.
Buy Structured SettlementWhen buying structured settlements, you are essentially buying a security-backed investment. This structured settlement purchase usually takes 14 days until completion. The purpose of buying a structured settlement is typically for the long-term investment the purchaser stands to make. The purchaser also has the option of selling it to an insurance firm for higher than what they paid.
Sell Structured SettlementThis option is for people who do not want installments for their settlements. You don't have to wait years to receive your settlement, instead you can receive a large lump sum that is usually a bit less than what you would receive had you chosen installments. This option benefits those who have immediate debt to pay off, including medical bills, mortgages, and many other debt-laden items. Be advised that 90% of those who choose this path have none of their lump sum remaining after five years. Also note that 2/3 of states have enacted laws which restrict the sale of structured settlements, along with many insurance companies not willing to transfer annuities to third parties.