Selling structured settlements

A structured settlement is a legal agreement in which an individual agrees to receive periodic payments from the damages awarded as compensation for personal injuries, instead of receiving a lump sum. In some cases, this method can allow the injured party to obtain financial assistance without having to worry about putting their money into investments that might be subject to excessive risk or loss of value over time.

However, there are times when one might need the money more urgently than waiting years for a monthly payment after an injury or disability. If you find yourself in this category, you may ask yourself, can I sell my structured settlement? the answer is yes, it is perfectly legal to sell future payments.

When you consider selling a structured settlement, there are many factors to consider. In this post, we will discuss five main reasons you should sell your structured settlement. Keep in mind that everyone’s situation is different, so make sure to speak with an experienced professional before deciding.

1. If You Need Immediate Cash

One of the primary reasons you might want to sell your structured settlement is that you need immediate cash. This could be for anything from paying medical bills, buying a car, house or business needs, and many others. If this happens, selling your structured settlement can help meet such financial obligations quite easily.

Remember, these settlements are designed to pay in installments for years and even decades, depending on the type of plan. However, suppose an unforeseen event occurs which requires instant cash payment. In that case, selling off some payments might bridge the gap until you receive more money from future monthly annuities received from structured settlements.

For example, back in 2008, when the recession hit America’s economy, many people found themselves being laid off from their jobs. As such, they needed money to cater to their families. Selling a small percentage of their structured settlement payments helped these individuals meet basic needs like food, rent, and other bills.

2. Funding a Divorce

Divorce is one of the biggest causes behind couples parting ways, and it can be a stressful experience, especially when children are involved. While many people might not want to believe how much money they would need to settle legal fees during divorce, one thing you should know is that it takes a good amount of cash.

This is where selling your structured settlement payments could come in handy. It provides an alternative way of raising funds for litigation costs related to divorce proceedings without borrowing from friends or family members who might not have the means either.

3. Funding Medical Bills

Medical bills are one of the leading causes of bankruptcy in America. In fact, according to a study done by NerdWallet Health, about 62% of bankruptcies filed in 2013 were a direct result of unpaid medical bills.

If you have high-deductible health insurance or no insurance at all, then you know how hard it is to pay for hospital visits and other treatments when your plan does not cover them. This is where selling part of your structured settlement payments could come in handy. Especially if the amount being sold off is enough to cover the cost of treatment.

When faced with large medical bills, many people choose to sell their structured settlement payments to pay for the necessary treatments without having to worry about money.

4. Funding Your Business

Another reason why you might want to sell your structured settlement is if you need immediate cash to fund a business opportunity. It’s not unusual for businesses to run out of capital at some point, and this could spell doom for the venture as it may have no chance of recovery. If you find yourself in such a situation, selling some of your future payments can be beneficial, especially if the amount received is enough to cover expenses until more money comes in from other sources.

5. Paying Off Mortgage

If there is one thing that most people are grateful for when they sell their structured settlements, it’s using the money received from their plans towards paying off their mortgage. This is because selling your settlement allows you to pay off mortgage loans which would have taken decades to clear based on the original agreement between the lender and borrower.


You can always sell your structured settlements and get instant cash. Why? Because a lot of reasons support this decision. One major one is that structured settlements are unlikely to be taxed. Most of the payments from structured settlements are not taxable. However, it is important to check with a tax professional before selling them. That’s because certain states may be subject to taxation when sold and some other state and federal laws that apply depending on the circumstances.