About Structured Settlements

What is a structured settlement? Do I have one? These are some of the most common questions we receive. Here, we dive into what structured settlements are, why you might have one, their benefits and drawbacks, and how you can sell your payments for cash.


 

What is a Structured Settlement?

If an injured party wins their claim against the person who harmed them and is determined to be owed money, there will be a settlement, sometimes in court, sometimes out of court, for an appropriate sum for compensation. What you may not know is that once an amount is agreed upon, a decision must be made regarding whether the money will be paid in a lump sum right away, or over time through a structured settlement. A structured settlement, put simply, is the financial compensation for the injury paid by means of periodic payments. 

 


 

How Do Structured Settlements Work?

You’ve won your claim, agreed on a compensation amount, and will receive your money in the form of a structured settlement. Now what? A structured settlement is an annuity usually issued and owned by an insurance company. The structured settlement pays out set amounts of money on a schedule. Payments may be made weekly, monthly, annually, or a mix. 

The span of time that your payments continue depends on whether the structured settlement is guaranteed, life contingent, or a combination of both. Life contingent payments last as long as you are alive and can be counted on for the remainder of your life. On the other hand, guaranteed payments are set to last for a predetermined amount of time, ending after the term concludes, regardless of whether or not you are alive for the entirety of the term. Additionally, you may be able to make decisions about your payment frequency, which can stay consistent over the entirety of the settlement term or fluctuate. It is important to note that usually, once the terms of your settlement are agreed upon and in writing, they cannot be altered. 

 


 

Common Cases

While not all claims result in you receiving a structured settlement, the following types of cases may result in one:

  • Personal Injury
  • Medical Malpractice
  • Wrongful Death

 


 

Structured Settlements: Weighing the Pros and Cons

 

Advantages of a Structured Settlement

  • Payments from a qualified structured settlement are tax-free
  • Payments come on a regular schedule, helping you to manage your spending. 

 

Disadvantages of a Structured Settlement

  • Once the terms of your structured settlement are in finalized in writing, you usually cannot alter the payments, even if your financial needs change significantly. 
  • Your money is not accessible in case of an emergency, leaving you with little-to-no options in unforeseen circumstances.

 


 

Selling Future Payments

If you are receiving structured settlement payments, but are still having trouble covering your day-to-day living expenses, J.G. Wentworth may be able to help. We are a top funder of lump sums in exchange for future structured settlement payments with more than 25 years of experience. When you need cash sooner than your settlement will allow, you might consider selling your structured settlement payments. We can offer a range of options for purchasing your payments. Whether you want to sell all of your settlement payments, a set period of payments, or a portion of each payment, J.G. Wentworth can help get your cash when you need it most.

Our representatives can walk you through every step in the process of your structured settlement payment sale. If you have any remaining questions about structured settlements or future payment sales, check out our structured settlement FAQs or contact us today for all the answers you need.

 


 

A Respected Name in Structured Settlement Payment Purchasing

J.G. Wentworth is one of the nation’s top purchasers of future structured settlement payments. With 25+ years of experience, we have helped countless customers receive the cash they need, when they need it. If you receive structured settlement payments, but think you can benefit from selling them for a lump sum, call one of our representatives or fill out our simple online form today.

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