Find Legal Topics > Trial Laws > A Brief Overview to Structured Settlement

A Brief Overview to Structured Settlement

A Brief Overview to Structured Settlement
Structured Settlement Background

A structured settlement is usually a financial agreement between two parties in why periodic payments are made to one party. Typically, a structured settlement will arise out situations involving personal injury cases or workers compensation. Structured settlements became popular in the 1970s, with the United States and Canada being the first to implement such an arrangement. 

Sell Structured Insurance Settlement

Structured settlements are arranged in a way in order to provide for periodic payments to the injured party. These payments may be spread out over a certain amount of time, thus, lump sums are not dispersed. However, there is the option to sell the structured settlement payments, in order to get a cash lump sum offered by certain companies. 

Cash for Structured Settlement

Structured settlements can provide for a means of a secondary income over a period of time. However, certain life circumstances may require considerable financial resources that may often not be available due to period payments. Cash for structured settlements is a viable option, where a person can sell the periodic payments to a company in exchange for a lump sum. 

Purchase Structured Settlement

There are companies and organizations that invest in structured settlements by buying these financial arrangements from individuals. Structured settlements can prove to be a viable investment because of the period payment arrangements, which allow the total amount to accrue interest over time. This allows companies to give out lump sum payments while making money on the same amount due to interests. 

Related Topics