Converting Your Structured Settlements into a Large Sum of Cash

Many people who have suffered damages or injuries caused by the intentional misconduct or negligence of another person, usually get a structured settlement in the courts as a solution. Historically, courts usually opt for this instead of a fixed sum of cash to the victim. However, structured settlement has become a rule due to its ability to pay a monthly, quarterly or annual payment to the claimant.

By receiving installment payments instead of a single sum of cash you make sure that the plaintiff receives regular income for a scheduled period of time. In general, the defendant (the party that caused the negligence or misconduct) buys an annuity through an insurance company or annuities for a specific amount of money. In return, the insurance company offers the payments of the installments following a calendar, and according to the terms of the structured annual settlement.


Generally, through the advice of his lawyer, the claimant will select the type of payment he wants to receive from his structured annual settlement. They can choose to accept deferred payments, or establish installment payments to keep up with inflation, and even set up special provisions to increase funds in the future. The options available through an annuity must be designed to meet the needs of the beneficiaries.

The terms

The disadvantage of accepting a structured annual settlement is that you are bound by the terms accepted in court. If the payment schedule agreed by both parties no longer meets the needs of the beneficiaries, the conditions cannot be changed. However, this structured annual settlement can be sold in accordance with the policies becoming a fixed sum of cash.

Any beneficiary can sell their annuity, or any portion of the structured settlement, to a third party. The remaining payments can be sold so that the beneficiary can convert his annual payments into a large sum of cash.

Also read "Structured Settlement Annuity Companies"