Disability Settlements

Written by Michael Federico
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Many people who receive disability settlements will be unable to work for long periods of time, or in many cases, for the rest of their lives. This is why disability settlements are often structured ones. They allow a person to receive regular payments over the course of many years, in essence, taking the place of a paycheck. A settlement such as this ensures that a person who is unable to work will have a source of income.

It is possible, in fact it is likely, that at some point a person receiving disability settlement payments will want to change the structure of the settlement. This generally occurs when a person needs a larger amount of the total settlement than they are currently receiving. If a person needs to do repairs on his home or pay a child's college tuition, the regular checks simply might not be enough. However, the structure of the settlement cannot be changed through an insurance company or any other organization that is handling it.

Selling Disability Settlements

Finding a settlement broker is really the only way to get money fast for future disability payments. Brokers can be independent buyers or connected to larger investment firms. They will usually purchase as many or as few settlement payments as a person wants to sell.

In order to protect themselves, sellers are encouraged to hang on to the majority of their future payments if they can. They should also find a buyer that offers high rates. The sale must ultimately be approved by a court. This law was put in place to protect the seller, but it does not always work, so finding a trustworthy broker is key.


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