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All You Need to Know About Selling Structured Settlements

Structured Settlements

Are you interested in selling structured settlements, and you don’t know how to go about it? Worry not! We’ll look into everything you need to know about selling structured settlements and the steps you need to follow.

For starters, selling a part of your structured settlements is one of the ways to get lump sum money fast. To do this, you’ll first need to know about structured settlements. Let’s find out more about them.

Structured Settlements and Other Terms

As you may already know, structured settlements are a contract between a person who has received a lump sum payment (the “settlor”) and the person who issued the check (“creditor”). This contract specifies that the creditor is to make a set of cash payments in a specific period.

The payments are structured for creditors to protect themselves from the high possibility of receiving nothing at all due to possible medical bills and lawsuits for injuries. With a structured settlement, the creditor can be assured that he will receive some money even if the person who got their check gets injured and requires medical treatment.

Although structuring settlements is quite common nowadays, it was not always like this. An innocent person had to cover all medical costs and pay legal fees for themselves or their family in the past.

With a structured settlement, you also receive a portion of your money as a lump sum payment; this amounts to more than your regular monthly income, which means that you can pay off your debts and still have a little bit of money left over.

Benefits of Selling Structured Settlements

There are many benefits when choosing to sell structured settlements. Here are some of them:

*You get a portion of the lump sum payment.

You get the lump sum payment without any risk. In most circumstances, these payments are paid directly to your bank account by check, and you will not be notified when the check is cashed. So, you can have that money in your bank account without any worries: you don’t have to sit around and wait for it.

The structured settlement can be sold quickly using an online marketplace like E-Bay.

Although you will have to pay some fees connected to the sale, there are no big surprises when dealing with a structured settlement: you know exactly how much money you will get and when it will be paid; this means that when you sell your structured settlement, you don’t have to worry about losing the money.

* The seller and buyer can agree on financial terms before agreeing on the selling of the structured settlement.

When you buy a structured settlement, it is usually sold to you by a third party. Once the seller has received your money and either agreed with you on selling the structured settlement or not, they will take care of everything else. In other words, they will deal with all aspects of the transaction.

* Many structured settlement sellers want to sell their structured settlements and have a ready buyer for their money as soon as possible.

Selling a structured settlement doesn’t involve a lot of paperwork, and it is often quite quick. Many people sell their structured settlements, so you will not have to look for a long time to find a buyer.

* You have the option of selling part of your structured settlement, keeping some of it as lump sum payment, and still collecting the remaining payments; this can be done through an annuity sale.

You can sell part of your structured settlement with an annuity sale and still receive the lump sum payment. You can use the money as you wish. If you don’t want to use all of the money, you can set up a separate annuity with a different insurance company that will then pay out the remaining funds as you have requested.

* Money received from structured settlements is tax-free.

Besides these advantages, there is one more benefit: selling a structured settlement is tax-free in most cases.


The selling of structured settlements is a clever solution to the problem of receiving a lump sum payment. Selling and buying structured settlements is quite simple, so it shouldn’t be too difficult to get things done and make money.

We hope that knowing more about this subject will help you get more out of your structured settlement.