By financen | January 11, 2018 - 3:22 pm - Posted in Structured Settlement

If you obtained money in a personal injury lawsuit, you may have received a structured settlement. Instead of getting the full amount of the settlement in one lump sum, a structured settlement enables you to receive the money in installments over a specified period of time.

If you need access to a larger amount of cash due to unexpected expenses or other financial circumstances, selling the structured settlement could be an option that you explore. Once you decide this is something you want to pursue, there are several steps you must take.

Reasons to Sell a Structured Settlement

Figure out why you want to sell the structured settlement payments and what your financial needs are. Some people have to cover their children’s educational expenses, need to pay their mortgage or incurred unexpected medical fees. Decide how much money you need. That will help you determine if you want to sell all or a portion of your structured settlement payments.

Complete the Application

Contact an annuity company and speak with a representative. The representative will ask you several preliminary questions such as why you received a settlement; the total amount of the settlement; who pays the settlement; and how much money you get per month or per payment period.

You have to complete an application and provide all of the necessary documents that verify your settlement and the payments. The representative will let you know your options if you want to cash out. You’ll need to decide how much of the settlement you want to sell and reach an agreeement regarding other terms of the transaction.

Court Approval of the Sale

Once you decide to sell your structured settlement, you need a judge’s approval to finalize the sale. The judge wants to make sure you understand the terms of the contract. The judge may ask if you sought advice from a third party financial professional who isn’t directly involved in the purchase of the settlement. Since selling the structured settlement payments can have a long-term impact on your finances, the judge may deny the sale if you don’t demonstrate a pertinent financial need for seeking this type of deal.

Choosing to sell structured settlement payments is a serious decision. Carefully review your options and speak with experienced financial professionals who can answer your questions. After you have received all of the information you need, you’ll understand the best path to take for you and your family.

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By financen | August 6, 2012 - 3:04 pm - Posted in Structured Settlement

Structured Settlements come with a lot of benefits. When you are in a Structured Settlement, you don’t have to pay taxes. This settlement is so appropriate and nicely set up, it can reduce the plaintiff’s tax obligations and is free of taxes.

Structured Settlement

Structured Settlement

A Structured Settlement is one of the convenient way to preserve the plaintiff’s settlement funds, so that he can make the payments easily in future. In many cases, the plaintiff is able to limit his use of money. Many people are not good in managing their money. For such people, a large settlement will immediately get wasted and disappear.

Structured Settlement is beneficial for the minors as they can provide the payments through their lifetime – personal costs during their adolescence, additional disbursements for college and other academic expenses, and other disbursements during adulthood.

Structured Settlements are very beneficial for those people who get injured and need long term special treatments and services. With the help of this lump sum amount, he gets the financial capability to purchase medicines, medical equipments, and take care of other necessary expenses.



As you can see there are many advantages of structured settlements, it has some disadvantages as well. Some people feel that they have very limited money left after doing the structured settlement. They may want to buy a new car, get a loan to buy a home, or pay for other expensive items and services, but it sounds to be impossible with the structured settlements. When they are in this agreement, they are not allowed to borrow money from the lenders. So for some people, accepting a lump sum settlement sounds to be a better deal as they will invest it and plan for their future.

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