Selling Your Structured Settlement
Filed under: Structured Settlements — Structured Settlement Expert @ 10:34 am
Structured settlements are payment arrangements to allow for periodic, rather than a lump sum, financial award to a personal injury claimant. Often, the terms of a structured settlement are arranged to meet the specific needs of a claimant. One injured party may require more money up front and should be able to comfortably work with annual payments while another may have ongoing medical needs related to their injuries that require more frequent payments, such as those payments made semi-annually, quarterly, or monthly.
When a structured settlement is created, the defendant agrees to work with an independent third party that will insure the financial arrangement - typically a life insurance company that is experienced in handling structured settlements. The defendant sets up an annuity that will fund the payments to the claimant.
Often, however, the claimant will realize that the annuity payments no longer meet their needs. At this point, they may choose to sell all or part of their structured settlement, in exchange for a lump sum cash payment. Luckily, there are those companies that will purchase structured settlements, giving the claimant a lump sum amount, and then taking over the role of receiving payments from the annuity.
When selling your structured settlement, it is important to look for reputable companies that are experienced in structured settlement transactions. Reputable companies of this type offer exceedingly fair buyout amounts.
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