For most people, this sounds like a pretty abstract concept. Lots of people aren’t even totally sure what a structured settlement is. If this is you, don’t worry. Why would you need to know this? For those who are interested, a structured settlement is an arrangement that settles a lawsuit, made out of the courtroom. Let’s say you’re the plaintiff. You’ve been hurt or wronged in some way. You sue the person or entity which has hurt or wronged you, and the matter gets scheduled to go to court.
Your opponent, the defendant, knows that your case is very strong. Their lawyers also know this. They know that they won’t have a chance in hell in a courtroom, in front of a real live judge and jury. So they pivot. Instead of getting the matter drawn out for months or years in a courtroom, kicking up high costs and damaging reputations, they opt to make a deal with you outside of the courtroom.
So you and your lawyers and they and their lawyers meet someplace, and they present you with an offer. Instead of dragging the matter out in a court of law, will you accept $X? If you say yes, the matter is resolved. Well, sort of. Sometimes, things are just getting started on your end of things.
In many cases, the defendant’s lawyers will push for you to receive a structured settlement, not a payment made as one lump sum. Structured settlements were instituted to ensure that plaintiffs get the most “bang for their buck”, so to speak, when they get a resolution to their case. With a structured settlement, a lump sum paid out monthly for many years, the plaintiff won’t be able to “spend it all in one place”, so to speak. It’s a system that can provide long term security for people, particularly after a very trying event.
But this doesn’t work for some people. Some individuals will do a lot better if they’re able to spend their money all at once. They have ideas for starting businesses, buying homes, going to school, and other worthy expenditures which require a lot of money up front. For these sorts of people, a structured settlement would be a life-changer, if only they could get access to the money all at once.
Individuals actually are able to sell structured settlement payments, to a variety of companies around the world. An annuity sold can jumpstart a lot of money-making strategies, or it can help in other ways. Some people have crippling debt, which is accruing interest charges faster than it can be paid off. Getting access to your structured settlement or annuity lump sum is an integral part in getting plans like these off the ground, plans which will benefit your life, and the lives of the ones you love, for many months or years to come.
So if you find yourself with a payment structure like this, for whatever reason, consider whether or not selling the payments would be a good choice for you. It could help you a lot for many years to come. But it’s also important to shop around, to make sure you’re getting the best deal. Whatever you decide, it should be a positive impact on your life.