What is a Structured Settlement?

What is a Structured Settlement

What is a Structured Settlement?

Structured settlement is an effective financial tool that exists specifically for injured people. It is a financial arrangement by which the claimant receives payments periodically instead of a lump sum amount for the claim. A structured settlement is chosen instead of lump sum payment when you receive money after a personal injury lawsuit. The arrangement is beneficial in cases where the payment is not possible and it is also preferred because it helps in avoiding trial and hence, reducing legal costs.

Want to Sell your Structured Settlement? Do it Right!

Agreement on a structured payment may have been made but there are several reasons that an individual would want lump sum money instead of periodic payments. The process of selling a structured settlement involves making decisions about how you will sell the payments. You need to make the decision to sell part of your structured payments in exchange for lump sum money. For selling them, you need to find a company that does the dealing without keeping large amounts of the interest. This is followed by sufficient paperwork that needs to be well set and proper to be approved by the judge and after that, you get the money for your sales, a lump sum amount for the period of the contract of structured settlements you sell.

Buying a Structured Settlement: Earn the Best Yields!

Buying a structured settlement from an annuitant is a straightforward task that usually involves a financial broker representing the seller that deals with the purchaser. The purchaser receives favorable yields since the sale of structured settlements are sold at a discount for exchange with lump sum payment. The process involves the purchaser that intends to buy a structured settlement payment to deal with the financial broker or company that represents a seller and after the contract, paying a lump sum amount in exchange for the annuitant’s structured payments. The contract is approved by court and the purchaser after this can receive the money periodically. The benefit that the purchaser gets is a sufficiently favorable yield from the deal. Also, having a structured settlement contract may be suited for individuals looking to save money for times such as retirement.

Worried about Retirement Times? Invest in Structured Settlements!

Investing in structured settlement is a good alternative and is particularly well suited for the people who are looking for income stream. The usual process involves the purchase of the structured settlement contract by buying a specific amount to the salesperson. This may seem like the best option as an income stream product for individuals, however, some precautions need to be taken. One thing that needs to be kept in mind is that these purchases can be expensive and may not be as easy to buy as initially thought. The sold contract can have its insecurities and it needs to be ensured that it has been approved by court. Also, these products once bought, are illiquid and they cannot be sold as easily if you change your mind after purchase. The decision for investing in structured settlement needs to be made after much thought and by investigating the right questions.