Sell a Structured Settlement, Is It a Good Idea?

When an individual receives a structured settlement, that individual is usually someone who has been injured and is either unable to work, or their ability to work in a previous career has been challenged.  A structured settlement is an agreement by a party to pay that individual periodic payment for set period of time. However, some individuals may prefer access to all of the money in a lump sum;  for those individuals it might make sent to  sell a structured settlement.

When an individual decides to sell a structured settlement, there are numerous considerations.  One should consider their personal situation. One of the major benefits of receiving settlement payments on a schedule is that the individual protects from spending a lump sum.   When payments come over time, that person is prevented from spending the money all at once. If an individual doesn’t have the discipline to stick to a budget, then perhaps it would not be ideal to sell a structured settlement.

We will discuss other considerations when one decides to sell a structured settlement in the coming days.


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Cash Structured Settlement In, Receive Lump Sum Today?

Individuals who have received a structured settlement and who need cash fast may wish to consider selling the settlement to receive a lump sum.  A lump sum can be received from firms that represent investors who wish to purchase structured settlements.  In today’s economy, there are few investments that investors feel are safe, but these types of contracts are safer than other investments.  Therefore, investors are willing to pay a lump sum now to receive the scheduled payments that a settlement would pay over a period of years.

The reason an investor would do this is that there are times — like now — where other safe investments are not providing an acceptable amount of return.  Purchasing a structured settlement is a low risk proposition for an investor.

It is important that any individual considering a sale of a structured settlement talk to an attorney to get the proper advice. Selling a structured settlement for a lump sum means that there will be no further money coming in.


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How to Sell a Structured Settlement

There are numerous ways to get cash quickly when moving to sell a structured settlement.  First, one should consider retaining legal advice. Frequently the seller has already established a relationship with an attorney who has negotiated the structured settlement. Secondly, one should consider shopping around, as it is likely that there will be much variance in the offers from companies that purchase settlement.  It would be best to receive multiple quotes from companies to make sure that one has received the best deal.

Additionally, sellers should note that the speed of a deal will largely depend on where one lives, and how quickly the court system works in their state or county.   Insurance companies have made selling structured settlements more difficult — although not impossible — in many states. This is another area where the guidance of an attorney would be vital.

We will discuss more on how to sell a structured settlement in the coming days.


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