Structured Settlements

A structured settlement is where one party is awarded an amount of money that is to be paid out over a certain period of time. This is most commonly as a result of insurance or injury settlement. The judge/court awards the settlement and the receiving party knows that they will be getting X dollars per month for Y months.

However, people don’t want to receive money over a period of time. They want the money Now. They can make better use of the lump sum cash available now for important tasks at hand at present.For example, buy a new home, start own business, pay for kids college education etc.

This is where the investment companies come into picture. They would buy someones structured settlement payments for a lump sum cash. For example, Mr. Z is awarded a $600,000 settlement from insurance company for an accidental injury. The settlement was to pay Mr. Z $60,000 for per year for 10 years. Mr. Z has an immediate need for $160,000 for new home mortgage payment. Z will be looking to find a company who can pay him cash amount for his periodic payments.

An investment company will try to buy the settlement from Mr Z for $160K and collect the payments from insurance company for the next 10 years.

Is it a bad deal for Mr Z or the investor company?

Well, Mr Z is happy with his $160K lump sum cash amount. the company is happy as they will make about 266% return on initial investment of $160K.

Buying someone’s structured settlement payment is not an easy process. The lawyers, insurance companies and judges are involved in the process to make the decision. But it is very common and there are companies who will help you find all the resources you need to sell / buy settlements.

Looking to sell your settlement or find options? We can help getting you lump sum cash payment for your structured settlement. Just fill out small online form and an specialist will contact you. It's Free !!