Nobody likes tragic events. However, they are a part of our lives. We cannot run from these events. Neither can we hide from it. Let us say that one of your loved ones had a car accident and now that person is in hospital. That must be a dreadful event, right? Just a small mistake by the driver spelled disaster. There is something the driver can do to make things right. He can pay money as compensation to fix the damage. The scheduled payment your loved one will receive is known as a structured settlement. Do you know you can get cash for structured settlement? To get cash for structured, you need to sell your structured settlement, but the question is how to sell a structured settlement? Keep on reading to find out.

No matter how careful we are, we can still make mistakes. There are some places where there is no chance of an error. On the other hand, we all are humans, and we can make mistakes. We were never meant to be perfect. Let us say a doctor made a wrong incision. As a result, his patient died. That doctor might have performed hundreds of surgeries and might have an experience of ten years. However, he made a mistake. The damage has been done, what can the wrongful party do to make this correct? The wrongful party can pay for the damage he/she did. This money can help the injured party to recuperate from all the damage. There are some benefits of structured settlement as well as some disadvantages.


Pros and Cons of Structured Settlement

Many civil cases, such as personal injuries, road accidents, wrongful death, etc. usually do not make it to court. Before filing a lawsuit by the injured party, the wrongful party comes up with a structured settlement. Both parties accept the structured settlement. When both parties agree on a structured settlement, the payee will receive a series of payments from the one responsible for causing harm. Even before deciding on a structured settlement, the wrongful party has two options. They can either pay the injured party a lump sum amount or pay through a structured settlement. Lump-sum means a one-time payment, but that payment is a large amount.

If the wrongful party decides to pay through a structured settlement, the payee will receive payments in a scheduled manner. For example, the one responsible for wrong will pay $5K every month for the next twenty years. The period of structured settlement varies from different settlements. Some structured settlements are for a lifetime. Even after the person’s demise, the structured settlement continues. However, the proprietor should name the beneficiary to maintain the structured settlement after his/her passing. In other cases, it has a period for which the settlement remains valid, and after that, it expires.

A small piece of advice for the payee, always discusses things with a tax attorney and a certified public accountant. In fact, it could also be a personal injury attorney. You should talk to them before agreeing on any kind of settlement. They will inform you of nearly everything. This way you can decide what is best for you and your family. Let us discuss some pros and cons of the structured settlement.



The most significant advantage of a structured settlement is it is a tax-free series of income. This means not a single penny will be taken from the payment you receive. Under the rules and regulations of the U.S. Tax Code, the income of structured settlement is known as “Tax-free.” On the other hand, there are a few exceptions where a portion of a structured settlement is not exempted from taxes. To learn more about this, you should contact your attorney. He/she can give you all the correct information for the process.

The second advantage is you will get a fixed payment after a certain amount of time. You must be wondering how good is it? Structured settlement works as financial security. This saves you from spending it all. Some people get cash for structured settlement by selling it. In fact, this is another case.

Furthermore, both parties can also tailor to annuities. It can help the plaintiff to fulfill all their needs. In addition, you can even get cash for structured settlement by selling it. However, we do not recommend anyone to sell the whole structured settlement. Instead, sell a small part of it to get cash for a structured settlement. This way, you can fulfill all your needs and get cash for structured settlement.

Last but not least, it avoids problems in court. We both know how court problems can cause hectic times for each person. Hiring a lawyer, taking time to go court, etc. not everyone can do it. Instead, both parties can reach an agreement where they do not need to go to court. The agreement is structured settlement. In short, both parties reach a structured settlement instead of filing a lawsuit and going through a court process.



The most significant disadvantage of a structured settlement is you will not get a lump sum amount. Sometimes, you might need a lump sum amount. In fact, in that case, the payment of structured settlement is not enough. For example, one of your loved ones needs immediate surgery, but the wrongful party decided to pay through a structured settlement. At that moment, you need a lump sum to pay for your loved one’s operation, and that payment will not be enough. Fortunately, you can get cash for structured settlement by selling it to a third party. However, there is a disadvantage even with that. You will not get 100% of the amount the structured settlement is worth. The structured settlement was worth $60K. However, you will receive $45K because of the discount rate.

Furthermore, a structured settlement is not flexible. It means once all the terms of the structured agreement are set, then changing it will be a hectic process. It requires a lengthy procedure to change the terms of the structured settlement. In addition, you will be given a fixed amount. However, we do not know about inflation in the future. Maybe the cost of all things increases. However, the structured settlement, which used to be enough for you and your family, does not have any kind of increase. The payments will remain fixed. In addition, you cannot change it even if the inflation is at its peak.


How to Get Cash for Structured Settlement?


Let us say inflation is at its peak, and it seems that the payment of structured settlement is not enough. What do you do in this case? Well, there is an option. You can sell it to get cash for structured settlement. You might be thinking since it is complicated to change the terms of a structured settlement. However, selling it will be even harder. As a matter of fact, selling a structured settlement is simple. It does not require as much effort as you think. If you follow our guide to get cash for structured settlement correctly, you can sell your structured settlement without any hassle. Keep on reading to find how to get cash for a structured settlement.


Step 0: Think Before You Act

Yes, you read it right; it is step 0. This step is the most important of all steps. Selling a structured settlement is a big decision. A structured settlement provides a steady amount of income for a long time. In a few cases, it is for the lifetime. In fact, in rare cases, the injured person’s family receives the payments even after the death of the injured person. Remember, you are going to sell a source of income for the rest of your life.

That is why you must think really hard about your decision. Take a look at your situation and ask yourself, do you require the lump sum amount? In fact, you should discuss a major decision like this with your family. They will help you make the right decision.

Once you made your choice to sell the structured settlement, you can now proceed to step 1.


Step 1: Research Buyers

The base of selling a structured settlement is to research buyers. The more you research buyers, the better rates you will receive. The best way to search the buyer is through the internet. Just go to Google and start searching for buyers near to you. Make a small list of buyers. In fact, later on, you will be contacting them. We suggest you get at least two buyers, and then you are ready to proceed to step 2.


Step 2: Getting Free Quote

The next task for you is to get a free quote from buyers you researched. We advise you to call them. However, you can email them or text them if you want. Make sure the buyer is willing to give you a free quote for your structured settlement.

It is okay to ask for a free quote from different buyers. In fact, you will be using it in step 3. Furthermore, you can even tell companies you are getting free quotes from every company. There is a small chance of getting a better quote after hearing you are getting quotes from other companies.


Step 3: Analyzing Data

Once you receive all your quotes from different buyers, you should choose which one is best for you. You need to analyze the data you collected from each buyer. You should be searching for one which offers a low discount rate. A discount rate is the difference between the offered amount and what your settlement is worth. In fact, this is why you need to look for a low discount rate. Unquestionably, this is because the lower the discount rate, the more cash you will receive. According to the National Association of Settlement Purchasers, the discount rate can vary from 9% to 18%. It all depends upon the buyer.


Step 4: Complete Paperwork

After selecting the company which is offering you a handsome amount of cash for a structured settlement, now it is time to make it official. Your insurance company, as well as the buyer, will start the paperwork process. All you need to do is to sign the documents which say you are selling your structured settlement to a third party. Always read all the terms and conditions before signing any kind of documents.

In addition, you need to attach a copy of the original structured settlement agreement. Of course, you cannot submit the documents without a copy of the original structured settlement. If you find you have lost the agreement, you can get a copy from your insurance company. However, you will need to place the request before getting that copy. In addition, you can also get a copy from the lawyer who negotiated the settlement.


Step 5: Getting Approved

Last but not least, you need to get your request to sell your structured settlement approved. You will be called for a hearing in court. In fact, this is where you need to convince the judge selling your settlement is better for you. Once your request has been approved, you will need to wait for it to be processed.

It can take at least 40 days to sell a structured settlement. In some US states, they will give you a “cooling period”. This cooling period is given for you to think about really selling your settlement. They provide this time in case you change your mind. On the other hand, in other states, you need to receive a professional assessment of the buyer’s sale to process the sale of your structured settlement. For more information, you should contact a financial advisor or lawyer. They will inform you of all laws pertaining to selling a structured settlement.



To get cash for structured settlement, you need to follow the above guide. Selling a structured settlement is pretty simple. The crucial factor for selling a structured settlement is to be patient. Take your time to research buyers and then get a quote. If you work with haste, then you might not be able to sell it at such an excellent rate. Remember, always think really hard before making a final decision.






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