Structured Settlement Basics

If you have won or settled a lawsuit recently you will be aware of the term structured settlements. For example if you have sued the manufacturer of an appliance because you suffered an injury due to a faulty appliance. The manufacturer will have to offer a certain amount as compensation. This might be in the form of a lump sum and the other option is a structured settlement which will pay you installments over a period of time. These payments can be structured in a manner that best suits your needs.

You can choose from a simple yearly payment to other arrangements which provide you with an initial lump sum (to deal with any urgent financial requirement), monthly installments and deferred payments. With this you are guaranteed a source of income over a period of time or for a lifetime if you choose to have it. However you need to know that you will be stuck with the terms of the structured settlement for life. You cannot change it in months after you have chosen it.

Have a Structured Settlement but Need Immediate Cash

This is not surprising in a day when financial emergencies appear with no warning signs. Although settlements can be very useful they may turn out to be cause of distress if you cannot access the funds you badly need because of the terms and conditions. However you can choose to sell all or part of your settlements when faced with immediate financial needs. There are a number of companies which will simplify the process for you and offer legal advice so you are assured that you are taking the right step to fix your finances.