Structured settlements provide periodic payments over time, often from personal injury claims or insurance settlements. While these payments offer long-term financial stability, some recipients may need immediate cash for emergencies, medical bills, or investments. This is where purchasing structured settlements comes into play.
What Is a Structured Settlement Purchase?
A structured settlement purchase is a financial transaction where a company buys your future payment stream in exchange for a lump sum today. The company evaluates your payments and offers a discounted cash amount upfront.
Benefits of Selling a Structured Settlement
- Immediate liquidity – Access funds when you need them most.
- Flexibility – Pay off debt, cover medical expenses, or invest in opportunities.
- Simplified finances – Consolidate payments into a single lump sum for easier management.
How It Works
- Evaluation – The purchase company reviews your structured settlement contract, payment schedule, and legal restrictions.
- Offer – You receive a lump-sum offer based on the present value of your future payments.
- Court Approval – Most states require a court to approve the transaction to ensure fairness.
- Payment – Once approved, you receive your lump sum, and the company assumes responsibility for future payments.
Factors to Consider
Before selling your structured settlement, consider:
- Discount rate – The company will pay less than the total value of your future payments. Compare offers to get the best deal.
- Fees and costs – Some companies charge administrative or legal fees.
- Financial impact – Selling may affect long-term financial planning or tax considerations.
- Reputation of the buyer – Choose a reputable company to avoid scams or delays.
Top Companies That Purchase Structured Settlements
- J.G. Wentworth – One of the most well-known structured settlement buyers.
- Peachtree Financial Solutions – Offers competitive rates and customer support.
- Stone Street Capital – Specializes in flexible lump-sum solutions.
Conclusion
Selling a structured settlement can provide quick access to cash when needed, but it’s important to weigh the pros and cons. Working with trusted companies and understanding the financial implications ensures that you make an informed decision when purchasing structured settlements.