What are Structured Settlements?
When law suits are settled, damages may be awarded in a lump sum, or a series of payments. A settlement which is awarded in a series of payments over time is called a structured settlement. Structured settlements are generally created by using a third party intermediary to provide the financing.
How to Purchase Structured Settlements
State and federal law may restrict the sale of structured settlements, and there are many legal complications that can arise. Since you'll be exchanging cash for the right to receive future payments, you'll want to make sure that you are protected.
1. Work with an established broker.
2. Look for a structured settlement financing company who is a member of the National Structured Settlements Trade Association who also places settlements with private investors.
3. Get multiple quotes to ensure you get the best deal.
4. Retain an attorney to review the agreement to ensure your interests are protected.