Lets imagine that a person is injured in an accident. He goes for a personal injury lawsuit and wins the case. The result would be a structured settlement, an agreement by which the person agrees to accept payments over a period of time in exchange for the release of liability for his claim. Structured settlements are like bank certificates of deposit, or annuities.

Although they offer a guaranteed periodic income to the person, they cannot meet his immediate or unexpected financial needs, such as medical expenses, debt payment, new business opportunities or any other such circumstances. However, the person can sell his or her structured payments structured settlement purchasers and get cash in a matter of days.

Many states in the U.S. have laws to help people sell their structured settlements in a risk-free manner. Structured settlements are sold as follows. The person concerned, who wants to sell his structured settlement, forwards documentation containing the insurance companys name and settlement payment plan to the settlement purchasers. Based on this information, the latter provides a free quote. If the person is interested, he sends a copy of his structured settlement policy and the settlement agreement. Then the two parties, the person [Seller] and the buyer [Settlement Purchaser], draw up a mutual agreement. This agreement, along with the application for selling the structured settlement, is submitted to the court for approval. The court reviews the application to confirm if it is in the best interests of the applicant. The settlement purchaser does all the processing. On average, the court process takes around 2 to 3 months, depending on the state laws in force.

According to Federal and state transfer acts, only personal injury settlements can qualify as structured settlements.

It is important to ensure that the insurance firm and settlement purchase company are licensed, and that all transactions are approved by a court order. Selling structured settlements can help meet major financial needs.