Selling a Structured Settlement

Is Selling a Structured Settlement for a Lump-Sum Payment the Right Choice?

So you have a structured settlement and you’re wondering if you should sell it for a one-time, lump-sum payment. Before you make such an important decision, you need to understand the benefits and the pitfalls of selling a structured settlement.

What Is a Structured Settlement?

When you are awarded a large sum of money from the courts, usually due to an injury, the settlement may be awarded as a structured settlement. Meaning that you get the money in smaller payments over a certain period of time rather than getting it all at once. However, if you want all of the money at once and you don’t want monthly payments, you can sell your structured settlement for a one-time, lump-sum payment.

The Benefits and the Drawbacks

Structured settlements have their benefits and their drawbacks. The main benefit of a selling a structured settlement is that you get a large, lump-sum payment at one time. However, it’s also important to realize that you won’t be getting the full value of your structured settlement if you sell it, so you’ll be losing some money. It also may take up to 12 weeks for the lump-sum payment of your structured settlement to be approved by the court.