Why Most People Sell Their Structured Settlements

Lump sum versus annuity

Thanks to the portrayal of the media, courtroom etiquette and jargon has made its way into living rooms across the country. With all of America watching courtroom dramas and crime shows, the public is growing increasingly aware of their rights: this is a good thing. There was once a time when sexual harassment, medical malpractice, and even more harmful acts could leave victims without their money, health, or safety. Most people know how to identify a lawsuit, and the figures do pay out. An employee lawsuit has an average payout of $150,000, while medical malpractice lawsuits paid out an average of $3.6 billion in 2013. A majority of these cases settle outside of court, eliminating the need for expensive court fees. Here’s everything you should know before counting you get cash for settlements.


A surprising number of individuals are surprised to learn that a structured settlement takes the form of an annuity payment. This means that no one will have access to 100% of their settlement cash between taxes, early withdrawal fees, and annual fees that can cost up to 3% of your total annuity. With annuities, the person in question can receive payments for a set amount of time (usually 10 or 20 years), or set up payments that continue for life. Naturally, the duration of the annuity determines the amount of each payment, but typically payments increase by a set percent every year. Even if you are set to receive an “immediate” annuity, you will typically have to wait 30 days before your first annual payment. So although a structured settlement annuity can be worth a lot of money, as you can see it comes with very strict taxes and procedures that limit the beneficiary.

How to Sell Your Structured Settlements

Upon learning all of this information, it is no surprise to know that there are many who cannot afford to wait for yearly payments or until 20 years is up to collect their cash. There are many businesses that specialize in helping people like you sell your structured settlements. By selling an annuity settlement, you may not get the most money back, but you will have a guaranteed amount of cash in your hand to help you now while the company continues to collect your annual payments. If you need cash fast, why not sell off your structured settlement and start letting your money work for you?