Why would a company want to purchase a structured settlement from a person receiving regular installments in compensation for a personal injury? The answer is clear: the company is guaranteed a steady, safe cash flow that is generally not taxable in return for a lump sum of money of about half the value of the full-term settlement. When companies buy a structured settlement they are always getting the better end of the deal, no matter how appealing the quick cash may seem to the seller. These companies are generally not out to make life better for injured persons, but instead are seeking to profit from those persons' pressing financial needs or eagerness to be free from what may seem to many like an allowance. This is why persons wishing to sell settlements need to be very, very careful about who they sell those settlements to.
If you are looking to purchase structured settlements, you will first need to know some information about the topic. When a lawsuit is settled, the damages can be resolved with either lump-sum cash or with periodic payments also known as structured payments. Periodic payments come into picture when the settlement is very large such as personal injury, wrongful death of the family member and so on. In these cases, the court usually orders the defendant to pay the settlement money on installments over a period of time such as monthly pay out or yearly payout. A structured settlement is the periodic payment agreement that a plaintiff accepts to resolve the damage caused by the defendant. When people who receive structured settlement payments need immediate lump sum cash for unexpected expenditures such as medical expenses, they can sell their structured settlements.
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