Structured Settlement Payments

Structured Settlement Payments

Structured settlement payments are one way that an insurance company, an employer or a defendant in a lawsuit might offer to compensate someone for damage or injuries. Unlike a lump sum, structured settlement payments are paid out regularly over an extended length of time, either of fixed duration or for the lifetime of the claimant or injury victim.

Types of Structured Settlements

Structured settlements can originate from many sources and can take on various payment structures. This kind of settlement is often paid by:

Insurance companies Workers compensation or disability claims Lottery winnings

These payments may be made monthly, quarterly, or annually. They can either be preceded by a lump sum payment or can begin with periodic payments from the start. Depending on the medical or financial needs of the claimant and/or inflation over time, the payments may be all of equal size or in varying amounts.

Structured settlement payments are usually customized to meet the needs of both the insurance company and the injury victim. This means they can be designed with your present and future financial needs in mind, taking into account medical issues, education and retirement.

The biggest disadvantage of this kind of payment is that it allows very little flexibility. Once a structured settlement arrangement is in place, the payment schedule usually cannot be changed. In many cases, people agree to a structured settlement payment and later decide that they would have preferred a lump sum payment to fund school tuition, start a business, buy a house, get out of debt or pay for unexpected medical bills. Although it's usually not possible to change a structured settlement, there is a way to turn it into a lump sum payment using a company like J.G. Wentworth.

What If I Need Money Earlier than my Structured Settlement Pays?

If you have been promised or are currently receiving structured settlement payments, but you'd like to convert those payments into a lump sum of cash now, our representatives can help you create the optimal financial arrangement for your present circumstances.

It's possible to sell some or all of your future settlement payments in exchange for a lump sum of cash. Contact J.G. Wentworth to discuss your options with a courteous and knowledgeable financial professional.