What Is Selling Structured Settlements?

Selling structured settlements generally requires a third party other than the payee or payer to take the request to the courts to finalize a transfer.

Why Payments Are Structured

A structured settlement could be considered a simple payment agreement between 2 parties.

The insurance company will buy an annuity with a lump sum that then pays out the agreed upon amounts on the agreed upon dates. The annuity up front likely costs less than the full amount of the agreement.

The initial investment that purchased the annuity gains interest over time, to meet the full payment structure. What the payee receives is a set monthly annual or recurring lump sum income as determined at the time of the settlement agreement.

Make Your Money Work for You

Structured settlements serve a purpose by allowing large amounts to be paid out over time, often in the best interest of the recipient. There are also tax breaks available for creating these payment structures and they can be purchased for less than the full payout amount.

There are situations where a structured settlement is not or no longer is in the best interest of the recipient. Potentially overwhelmed by debt incurred as a result of the incident, or life expenses arise that cannot be met with the income the annuity settlement provides.

These immediate or dire financial needs can be met by selling your structured settlement payments to a settlement factoring company. You may have seen their commercials on TV. Companies such as these purchase future payments in exchange for a discounted lump sum amount.

Contact an attorney to create a structured settlement, an insurance company to buy an annuity, and a factoring company today to discuss a full or partial structured settlement sale.

Structured Settlement Writers work to inform the general public on factoring related settlement information.