Cash For Structured Settlement, Is it easy?


Cash For Structured Settlement

Tragic events are a part of our lives. Nobody likes tragic events. You can neither run nor hide from these events. They have made a place in our lives. According to the recent data, a person getting hit by a driver in the USA is 1 out of 366. The probability might be exceptionally low, but you never know who is that unfortunate one. It can be anyone, including you and your family. After the accident, the next thing to follow up on is the dispute which is held in the courts (after admitting the injured to the hospital). To avoid this dispute, you can always choose the structured settlement option. Cash for structured settlement is the best option because it avoids conflicts in court and is suitable for both parties. In this article, we will guide you through everything related to cash for a structured settlement.

Cash for structured settlement is not only related to injury, but all other events that require money. It can be anything, such as an unexpected bill, education, or maybe even a business investment. You never know when you need a lot of cash. To get those funds, you will have many options, such as taking a loan, selling your assets, and many others.
If you have structured settlement as your assets, then we have some good news for you. By following a few steps, you can convert your structured settlement into cash, so you do not fall into any financial problems. Keep on reading to find all the possible ways to use cash for a structured settlement.

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What is a Structured Settlement?

Many people think a structured settlement is a complicated thing. However, it is not as tricky as it sounds. As a matter of fact, a structured settlement is pretty simple. If we look at the lawsuits, most of them result in some company or someone paying to another party to make things right. This is after doing something wrong. For example, a driver hit a person accidentally, and now that person is admitted to the hospital. To make things right, you can choose a structured settlement. In simple words, paying cash for structured settlement, you can save yourself as well as help the injured party.

The wronged party can be forced to pay cash for structured settlement (when losing the case), or they can accept it on their own to pay money to the injured party. In case the payment is small, then the responsible party who was wrong, will have the option to pay a lump sum settlement. If the money is in a large amount, then a structured settlement annuity is arranged.
If the wronged party decides to pay cash for structured settlement, they place the money in the annuity. An annuity is a financial product which will guarantee you the regular payments from an insurance company over time.

An agreement is signed between the person who caused injury and the injured party. This agreement says that the wronged party will receive a coverage for the harm they received from the other party. There are two ways to obtain a structured settlement.

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History of Structured Settlement

In the United States, structured settlements gained popularity in the 1970s. It was known to be the best alternative to a lump-sum settlement. The reason behind its increase in demand is because of several rulings by the U.S. IRS (Internal Revenue Service). They stated if all the particular requirements are fulfilled, then the claimants would not owe any tax on the amount received.


Why Prefer Cash for Structured Settlement?

Cash For Structured Settlement

If we talk about paying $10,000, it might not be that difficult to pay in a lump sum to the injured party. However, if the money is like $1M, then paying a lump sum might not be easy, unless you are Jeff Bezos or Bill Gates.

That is where the wrong doers decide to pay cash for a structured settlement. As a matter of fact, the injured party also votes for a structured settlement. There are a couple of reasons why both parties agree to a structured settlement. First of all, it is the best way to guarantee the injured party’s lifetime income. In addition, it is easy for the guilty party to pay that amount per month. Furthermore, the money will have an exemption from income tax.

Sometimes, people sell their structured settlement for a lump sum of money. However, everyone has a different opinion. Some think it is better than receiving a small amount of money per month. On the other hand, some people believe at least it is a guarantee the injured party will keep receiving cash for the rest of their life. But what are the common cases for structured settlement? Let us talk about that.

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Common Cases for Structured Settlement

Before we start with the common cases, these are not the only cases in which both parties agree on a structured settlement. There might be a unique case in which both parties might decide on a structured settlement. However, we will take a look at some of the most common causes. Below are frequent cases in which the responsibility party who created wrong doings agrees to pay cash for a structured settlement.

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Personal Injury

In this case, the person who was harmed files a lawsuit against the wrongful party. In that lawsuit, the injured party seeks money from the responsible party. The typical example is a road accident. The person who was hit, will file a lawsuit against the driver seeking money in the form of a structured settlement. This case is also known as a civil case. In addition, the money the injured party receives from a structured settlement, will help to pay all the medical expenses.

Worker’s Compensation

Workers can get injured on the job. Sometimes, no matter how many safety precautions you take, there is a chance that someone can get hurt. To pay the worker who got injured, business owners prefer cash for a structured settlement. This payment can help the worker to pay his/her medical expenses. Furthermore, the amount also includes the wage, as well as, other costs until the worker can work again.

Medical Malpractice

The next common cause of structured settlement is medical malpractice. We all are human, and we make mistakes, although a doctor’s position might be challenging since there is no room for error. However, even doctors make mistakes. Just a small mistake can cost a life. If this case happens, then the wrongful party will pay the injured party by a structured settlement; otherwise, the injured party can sue the doctor for medical malpractice.
Wrongful Death

Last but not least, through a structured settlement, the wrong party can pay the injured party with a stream of tax-free payments. This kind of case happens when someone kills another accidentally, such as a road accident, etc. The structured settlement is a way to compensate family members of the deceased. The payment will be tax-free, and it will replace the source of income of that family.

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Payout Options for Structured Settlements

Cash For Structured Settlement

When it comes to receiving cash from structured settlements, you have many options. For the other party, there are not so many options. You can decide whether to begin receiving the funds or delay it. In fact, is up to the injured party and what they prefer. For example, if the family member of the injured party is in the hospital, that means they require the money as soon as possible. So, they will begin receiving the money. However, if you decide to postpone the payments, the annuity will keep growing because it earns interest. After a period, such as 5 – 6 months, you can receive that annuity altogether.

Moreover, the injured party gets to decide whether they get paid for the rest of their life. It does not matter how long that might be, or for several years. Besides that, the injured party also gets to decide the schedule for receiving money, as well as, whether the payment should go down or up over time.

Structured Settlement Pros and Cons

Many civil cases such as road accidents, personal injury lawsuits, etc. do not make it to court. This is because both parties agree on a structured settlement early in the litigation process. Usually, when you decide for a settlement, it requires the plaintiff (the person who brings the lawsuit) to stop any further legal action. In exchange, the plaintiff will receive money payments from the defendant. In a few cases, the plaintiff might receive money from the defendant’s insurance company. There are two options for settlement payments. The first one is that you will receive the lump-sum. It means that the defendant will pay you one time. The next option is to receive regular payments over a period of time, and that is known as structured.


If the plaintiff decides to receive cash from a structured settlement, then you need to pay cash for a structured settlement. These payments will be regular, and it can be for a couple of years or maybe the rest of the plaintiff’s life. On the other hand, the structured settlement can help the injured party when the plaintiff suffers from a catastrophic injury. In addition, after the agreement of structural agreement, the defendant’s insurance company makes an annuity policy for the injured party. This annuity policy provides the plaintiff with a continuous stream of payments. To cover several expected expenses, the annuity contracts can become complicated.

In addition, the injured party should always discuss things with the tax attorney, certified public accountant, or personal injury attorney before accepting any kind of settlement agreement. This will allow you to fully explore all the tax scenarios for settlement. There are some pros as well as cons of structured settlements that you should consider.


1. A structured settlement will give you a substantial tax benefit. The reason is that personal injury settlements are known as “tax-free” under the U.S. Tax Code. There are a few exceptions, and it can make a part of the settlement taxable. Examples of the exceptional case are interesting and accrue on the structured settlement, award of punitive damages, etc. To learn more, you need to speak to your attorney.

2. Through the structured settlement, the plaintiffs will get certainty of payments for a fixed period. In a few cases, the plaintiffs can choose the lump sum option, which may be more beneficial.

3. Both parties can also tailor annuities. This will help the plaintiff to fulfill all the needs.

4. A structured settlement can be combined with the lump-sum payment to meet all the necessary expenses such as rehabilitation cost, medical bills, repayment of debts, and much more.

5. Even if both parties are far apart in their settlement negotiations, a structured settlement will help them to reach an agreement that is acceptable for both parties.



1. In a few cases, whether you decide to go for structured settlement or a lump-sum payment, you need to pay the tax including attorney’s fees, punitive damages, and much more

2. There is another problem with a structured settlement. The structured settlement does not protect against any kind of adverse economic conditions (for example, inflation, recession, etc.). A new change in the economy can make those payments too small for you.

3. If the terms are finalized, you will not have any authority to change them if your needs change. This also means you cannot renegotiate if there is a change in the financial situation or overall economy that may change.

4. If you want to tap into the structured settlement (without selling payment), it will cost you. You will end up paying IRS penalties as well as surrender charges if your age is below 59.5 and you start to withdraw funds

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Types of Different Structured Settlement

Cash For Structured Settlement

There are many different types of structured settlement payments. Each one is unique and different from another. In a structured settlement, the wrongful party pays the injured party/plaintiff to avoid bringing the case in court. This money can help the payee to fulfill all the needs such as medical bills, etc. The structured settlement creates trust between both parties and avoids conflicts.
Furthermore, a structured settlement can be planned in a way to incorporate at least one type of income streams from a single contract. In simple words, you can receive payment in separate agreements. If you want, you can receive the payment through ACH or direct funds transfer, directly to the bank account, law firm, and much more.

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Income for Life Annuities

Structured settlement guarantees lifetime income streams that can help the plaintiff to fulfill all their needs. It depends on the annuity issuer and when he/she want to receive the payments. He/she can receive it in weeks, months, or years. A guarantee period (also known as a death benefit or certain period) can be combined with lifetime payments so that benefits will be paid for a time, and it does not matter that the payee survives by that time. For example, you got a quote of $550 per week for life with 40 years. This means that you will receive the payments for the rest of your life or for 40 years, whichever is longer.

Deferred Lump-Sum Payments

Let us say you need special funding such as future medical cost, reinvestment, college education, etc., then Deferred Lump-Sum payments can help you. They are commonly made for per-determined life milestones. Most people choose deferred lump sum as it benefits their situations.

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Step Annuities

When the amount of payment gradually increases during the structured settlement period, then it is known as Step Annuities.

Percentage Increase Annuities

It is like the step annuities. In the case of percentage increase annuities, a percentage is fixed for the cash for a structured settlement. The cash increases by that percentage. This means that the opposite party needs to pay more cash for structured settlement after a period of time. It protects from inflation.

Period Certain Annuities

To receive cash from a structured settlement, you need to wait. The waiting time can be weeks or months. However, you can prefer different model structured settlement where you will receive income from fulfilling your needs for a specific time. Model payments allow you to accept payments in a lump sum. So, if you need to pay funds to your college or school, or to plan your retirement income, you can choose a specific period annuity. In addition, it also means that the payments will not stop even if the payee dies; his/her family can still receive that payment.


Best Companies for Structured Settlement

Cash For Structured Settlement

A structured settlement has different types. Every type is different from others. Hence, buyers should understand all the options before deciding. The difference between wrong and right will decide the amount of payment as well as time before the injured party receives the lump sum payment. Below are some of the best companies that will help you to pay cash for a structured settlement.

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DRB Capital

One of the leading companies in purchasing structured settlement is DRB Capital. The best part of DRB Capital is its fantastic customer service team. The customer service team works precisely so that they meet all of your requirements.

When you hire DRB Capital, they will assign a representative that will work with you closely. This will surely meet all your needs. Whenever you contact DRB Capital for any queries, you will find the same representative who knows your case. In addition, their representative will not pressure or rush you to decide. As a matter of fact, the representative will provide you with guidance, as well as, information so that you can make the right decision.

The Better Business Bureau rates them as A+. That is why the DRB Capital team is the leading industry in the field of the structured settlement. In fact, you can sell your payments fast and efficiently at competitive rates with the help of DRB Capital.

Fairfield Funding

Fairfield Funding is one of the best companies for the structured settlement. Their base is in Atlanta, GA. They provide high-quality services in the field of the structured settlement. The best part is the whole team is specialized in structured settlements. Therefore, they will exceed all your expectations. As a matter of fact, they receive customers through their previous client’s referrals. So, if you know anyone living in Atlanta and looking for expert structured settlement services, you can refer them to Fairfield Funding.

Oasis Financial

One of the oldest and experienced companies in the area of structured settlements is Oasis Financial. They have been working efficiently since 2002. Year by year, their services grew to be amazing. Today, Oasis Financial is known to be one of the best-structured settlement service providers. Either it is for worker’s compensation or wrongful death, Oasis Financial has an expert team that will provide you pre-settlement funding. In addition, they will provide you with a structured settlement for different cases. The main company is in Rosemount, Illinois. However, you can find their offices throughout the U.S. Today, they are known as Oasis Legal Finance, LLC.

Novation Settlement Solutions

The next one which we think deserves the title of best is Novation Settlement Solutions. They are located in West Palm Beach, Florida. Like others, they also offer their clients the ability to sell structured settlements. The expert team will help you come up with a good decision fast. The unique part of Novation Settlement Solutions is they provide online services as well. This means you can send offers to Novation Settlement Solutions through phone or just email them. Their fantastic customer service will respond to you as soon as possible. People left terrific reviews for Novation Settlement Solution, which makes it one of the best companies offering settlement services.

Seneca One

Finally, we end this list with Seneca One. If you are looking for a company to handle multiple options of your structured settlement and selling your payments, we suggest you contact Seneca One. Seneca One has helped thousands of clients. In addition, the best part is they will not charge you any legal or processing fees when you are working with them. You can find them in Bethesda, Maryland. For the last 17 years, Seneca One has been helping clients with structured settlement services.

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Qualifications of a Good Buyer

Let us say, all the above companies’ services may not available at your location. You might find other companies offering settlement services. However, you might not know whether to trust them or not. Do not worry. We made a small list of qualifications which a well-structured settlement buyer should have. Please, ensure that your buyer has these qualities; otherwise, we do not guarantee what will be next.

  • Should have substantial industry experience
  • Professional customer service
  • Have an amazing rating with the Better Business Bureau
  • No negatives or at the very least a few negative reviews on other rating websites or Yelp
  • No hidden fees
  • Free quote provided in writing


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Know Your Selling Options

There are a few ways you get cash from the wrongful party. The wrongful party is who pays cash for a structured settlement. Always remember this, compare all of your options before you decide. You can sell your structured settlement and get a lump sum of cash. However, you can also decide on getting cash for the rest of your life. In addition, you can decide to sell just a tiny portion of your settlement and keep receiving the remaining reduced settlement payment for the rest of your life.


When you opt for a partial sale, you will sell a set period of the payment you were going to receive. Once that time ends, you can resume your payments since you are the settlement owner to get the advantage of long-term funds. However, if you sell your whole settlement amount, you will receive a large amount of money, which is a very flexible option. You can use it according to your needs. On the other hand, you will receive just a one-time payment, and that is it. It might be a lump sum, but then you will not receive any monthly payments.

Either way, you should think before you decide. Plan and think about what would benefit your case. For example, if you are in the hospital and need urgent cash for operation, you can vote for a lump sum. This way, you get to pay all the medical fees. That is why you must plan and use the money wisely.

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Process of Selling Settlement Payments

Let us talk about the above example. You are in the hospital, and you need money for an operation and other medical treatments. So, you decided to sell your structured settlement to get the lump sum money. Now, how do you do that? Do not worry. We will tell you how you can get cash for a structured settlement. We have divided the whole process into three simple parts. In fact, this will help you know precisely what to do.

Start with a Quote

At the start, receive all the cash out quotes from numerous structured settlement companies. This will help you to understand how much you will receive. In addition, it will let you know how fast you can expect to get your payments. Make sure you get in writing all those promises made by the companies. In fact, this will help you have proof and help you avoid unpleasant surprises. Unquestionably, if they made a promise, they would have to keep their word.

Get Court Approval

Once you decide which company is right for buying the structured settlement, the next step is a court hearing. You will be summoned in front of a court. Your task is to get the judge to approve your decision. In fact, you will need to tell him/her which choice is best for your financial situation. In addition, you might need to attend a court hearing. Some companies even offer to have a lawyer be there on your behalf during court trials. However, make sure your state allows that.

Access Your Funds

After the court hearing, you will not immediately receive the payments from a structured settlement. Firstly, the buyer should make a call to your insurance company informing them about the sale. Undoubtedly, the transfer of the lump sum can begin. The duration of transfer depends on your company. Furthermore, your payment options might also vary because it depends on your buyer’s offered methods.

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When to Cash Out a Structured Settlement

People get confused when to cash out a structured settlement. Once the other party has paid the cash for structured settlement, you are the owner of it. It means, you get to decide the method of payment. You can receive payments after a period, or you can sell it for a lump sum. At this point, looking at the money, people make the wrong decision, which they regret in the future.
The terms, as well as conditions of a settlement, are limiting, with the donor entitled to provide the recipient’s money on a schedule. In many cases, this schedule does not fulfill all the needs of the recipient. This means many people who vote to cash out their structured settlement need money urgently.

However, if there is not a need for urgent money, people will vote for a structured settlement instead of selling it. Later on, they start to regret it and want to reverse their decision and choose to cash out their structured settlement. Everyone has their reasons, and it might be valid for them. No matter what is the reason, we have a way in which you can get cash for your structured settlement. Below are some of the common reasons for cashing structured settlement:

  • Buying a car
  • Buying a home
  • Financing education
  • Paying off debt
  • Business investments

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How to Cash Out Structured Settlement?

Cashing your structured settlement might be a little bit difficult. There are a few ways which you can get cash out of your structured settlement. Before you choose any of the steps, make sure you compare all your options and choose the one which fits your needs. Most people make the mistake of selling their whole structured settlement. There is no need to sell your entire settlement. In fact, you should only sell a portion of it. Unquestionably, you can get the amount of money you want. In addition, after a period of time, you can start receiving the payments again.
Regardless, you should not feel deprived by the schedule of the payments. If you think you urgently need the funds, there are multiple options available for you.

Companies which buy structured settlements can obtain your structured settlement and pay you a lump sum in exchange. They first calculate the remaining payment you will receive from a structured settlement. In addition, they will provide you a quote for the purchase price.

However, you will not receive the full value of the structured settlement. The buyer will offer you a price which will be lower than the total cost of the structured settlement. The difference in the amount between the full value of the lump sum and the structured settlement payment is known as the discount rate. Keep on reading to learn about the discount rate.

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Discount Rate

The steps of the discount rate are the same. However, quality can influence it. It does not matter what you decide on. The process will remain the same. We broke up the selling process in 3 different parts to make it easy for you.

When you receive quotes from different buyers, it becomes essential for you to understand what a discount rate is? It is different as it sounds. You might want to see a low discount rate when shopping, but things are different in the world of structured settlements.

So, what is the discount rate? Let us say, in 12 months you can earn $20k from your structured settlement. You want to sell it because you need money for some business. The company will analyze your structured settlement and then will provide you a quote. Let us pretend the quote is $17k. The reduction of $3k is the discount rate.

In simple words, it is the amount the buyer will reduce from the selling price of your structured settlement. To calculate discount rate, companies analyze many factors such as current interest, any additional fees, number of payments, payments being sold, as well as the timeline of the whole structured settlement.

If you are selling your structured settlement, you might be aiming for a 0% discount rate. Unfortunately, this is near to impossible. In simple words, no company will offer you full lump sum money.

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How to Receive Big Payment Through Structured Settlement?

A structured settlement does guarantee you will receive the payments for an exceptionally long period. In some cases, you will receive it until you are deceased. This is like a guarantee you will be paid for doing nothing. However, that payment is not that much. Some people even regret choosing a structured settlement instead of a lump sum. What do you do now? You have two different methods you can choose from to receive a large number of payments. One of them is to sell your whole structured settlement to a buyer. The other is to sell a portion of your structured settlement. You can choose any way you want. However, keep in mind, you should compare all the options available for your current situation. Undoubtedly, after which, you would select the best one.

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During unfortunate events, to avoid conflict and keep from filing a case, people often decide for a structured settlement. In a structured settlement, the wrongful party needs to pay cash for a structured settlement. A structured settlement is a negotiated insurance through which the injured party agrees to resolve their case by receiving the whole or a part of the settlement in the form of periodic payments. In fact, these agreed upon payments will be on a set schedule. In simple words, if someone hurts another individual, they must pay the injured party an amount courts and lawyers may settle on.


Some people do not prefer cash payments for a structured settlement. Instead, they sell their structured settlement for a lump sum. This means they can sell their structured settlement to a buyer or a company. Through this way, they can receive a lump sum without waiting. People decide to go for a lump sum because they urgently need money. For example, they may need cash for medical operations, debts, etc. Cash for structured settlement should meet their needs. On the other hand, it will be a one-time payment, and it does not guarantee your payment stream for a lifetime.

Some companies in the U.S. are willing to buy a structured settlement. You should follow the guide properly if you want to sell your structured settlement for a proper amount of money. In fact, you should get a quote from each of them. Unquestionably, you should think of your options, and select the best one according to your situation. You will not get the full amount of lump sum because of the discount rate. The less the discount rate, the more money you will receive.

In the end, always look at your options and choose the right one according to your situation. Do not decide in haste. Otherwise, you might regret it later.