Structured Settlement Industry Explained (Part 1)
Filed under: Structured Settlement — Structured Settlements Pro @ 7:27 am
There are two sides to the structured settlement industry that often cause confusion. The next two posts will examine the differences between the “primary market” and the “secondary market” and the value each provides.
The primary structured settlement market helps negotiate structured settlements between an injured party and the defendant (often an insurance company). If the defendant offers to settle the case with a financial award the plaintiff often will have a choice of receiving a cash settlement or a structured settlement. A structured settlement is set up to make periodic payments to the injured party to help them meet their ongoing financial needs.
A “Primary Market” broker will help negotiate the terms of a structured settlement working with the injured parties attorney and legal counsel for the responsible party.
Structured settlements are widely accepted as an excellent financial arrangement with an estimated 97% of all settlements staying intact over the life of the agreement.
However, in some cases a structured settlement recipient may have change in their life circumstances which changes their financial needs that their settlement can’t meet. In these few cases the individual can consider converting some or all of their future payments to a lump sum in the secondary market.
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