Buy Structured Settlements

A structured settlement is the result of a lawsuit that means one person or company must pay another person a set amount of money for a period of time.  For example, this type of settlement is a relatively common result of a lawsuit where one person was injured in a car accident caused by the other person.  This money is usually used for covering medical expenses and even past and potentially future lost money from being unable to work as a result of the accident.  The settlement may be paid by person or more commonly by their insurance company.  For the person that was injured, this means that they will receive a payment every month for a certain number of years to compensate them for injuries.  While a lump sum can be appealing, a structured settlement guarantees a certain amount of income for a long time and can't easily be spent all at once.

It's common for someone who was awarded one of these types of settlements to want a large amount of money now instead of receiving a check for the next several years.  You can often find a company who may be willing to purchase the structured settlement from you.  This will mean that they will write you a check for a certain amount in exchange for all future payments going directly to them.  This can be a great outcome for both parties if you need money now and are not willing to save it each month.  You will definitely get less total money by selling the settlement, but this is the price you pay for the convenience of having all of your money at once now.  For example, a $500 a month payment may be enough to cover a mortgage payment on a house, but will not cover a large down payment.  If you sell the settlement, you may be able to afford the down payment but keep in mind that you will not the dependable monthly income anymore and being able to make the mortgage payment may require you to save, or to find another source of income now that you have sold our settlement. 

This can often be a good deal for a company since they can buy a settlement upfront for a certain amount with a discount, and then have a guaranteed cash flow for a number of years in the future.  This way, buying and selling of a structured settlement is often a good outcome for everyone involved. The potential downsides are that it makes a settlement easier to lose for the person who won it, and may also have different tax and income implications than if you simply hold on to the settlement and receive a check each month like normal.