Structured Settlement Industry Explained (Part 2)
Filed under: Structured Settlements — Structured Settlements Pro @ 2:52 pm
The last post described the role and benefits the “primary market” plays in the structured settlement industry. Today’s post will focus on the secondary market.
The secondary structured settlement market helps those individuals that have received a structured settlement but have had a “life change” or pressing financial need for a larger sum of cash. Examples may be someone going through a divorce or having a child that will be entering college or the accumulation of debt.
When a recipient has an immediate need for a larger sum of cash then their settlement payments provide, they have the option of converting their future payments to cash.
The secondary market not only meets the immediate need for cash but also provides flexibility so that one can choose to sell some or all of their payments depending on their situation. If they choose to sell some of their payments they will receive a lump sum payment as well as some of their continued payments for the original structured settlement.
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