Structured Insurance Settlements

Written by Michael Federico
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A structured insurance settlement can stem from a malpractice, personal injury, or wrongful death suit. A structured settlement can also be developed for people who inherit large amounts of money from a will. Retirement investment products are often paid out as structured insurance settlements, as well.

A structured settlement does not grant a person a lump sum. Instead, it stretches out payments over time. There are people who have several million dollars coming to them, but due to the construct of their settlements, they will never see a check for more than a few thousand dollars.

Problems with Structured Insurance Settlements

It is no secret that Americans tend to want things quickly. Waiting for food has become a problem. Waiting for money is something else all together. Lottery winners regularly give up millions of dollars in order to receive their winnings at one time. There are also people who choose to sell some of their future insurance settlement payments to get cash fast.

People looking at it from the outside are often baffled. However, a person receiving periodic payments on a structural insurance settlement knows that he has this untapped source of money. The payments might make things easier, but they usually cannot help a person change his life in a major way.

Selling insurance settlements to a settlement broker will often allow a person to do things that he could not do with the regular payments. Many people are able to purchase homes, eliminating mortgage or rent payments for the future. Others who sell fewer payments or receive less money will buy cars. Again, this eliminates debts and interest payments that accrue over years, so they are making up for some of the future money that they lose in the sale.

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