Those who get in accidents and receive payments from insurance companies as compensation for their injuries often receive structured settlements. A structured settlement is a series of payments made on a predetermined payment schedule to an individual or group of individuals. These payments are usually made in an effort to cover future medical expenses and lose of wages due to affects of the accident. People to whom these settlements are paid have the right to sell them if they so choose.

Those who are looking to sell their settlement are basically saying they would rather have a lump sum of cash now than continue to receive small payments over time. Once these types of settlements go on the market they make attractive investment options because in exchange for a lump payment now, you receive payments over time that will eventually exceed the payment you made up-front. The only risk in this investment is if the company who issued the settlement declares bankruptcy, but this can usually be avoided if you properly research the issuing company.

When the seller finally does sell the settlement they receive say 65% of the final value of the settlement, but they receive the payment now. This can be advantageous if you need the money immediately. The one who purchase structured settlement will take over receiving the payments for the remainder of the term which guarantees them a regular income. Obviously this means the purchaser receives more money overall in the long run and makes an above average return on their investment.

There are tons of reasons why someone would want to sell their structured settlement. Chiefly among these is when someone falls on financial down times. Typically people who are dependent on a structured settlement are this way because they have not set themselves up very well financially without it. So when they find themselves in a situation where they need money they are likely to explore options to sell their settlement. This gives them money now for the long term income.

You can contact your financial planner if you want to know how to purchase structured settlement but basically you will be offered a few options of what type of settlement you want to buy. You need to consider how frequent you want the payments to be and over how many years. You can purchase a settlement of your own; where you buy a fund that will pay you back over time with interest or you will buy a settlement someone else is selling.