A structured settlement involves a negotiation between the defendant and a plaintiff in which the defendant promises to pay a series of payments, often funded through an annuity. An insurance company is contracted by the consultants who purchase the annuity, and this helps protect the money from recessions and market fluctuations. The plaintiff, who is a victim of a personal injury, will receive a series of payments as scheduled for a specific period. This article will explore structured settlements and how they work.

How Structured Settlement Issuing Companies Work

Structured settlements are a form of compensation that the court awards the victim for the losses that might have occurred during an injury. In this payment after the annuity purchase, the structured settlement company, which is almost always an insurance company, acts as a third party that helps to detach the plaintiff from the defendant. This helps ensure the payments are made and are consistent throughout the period scheduled by the court. This money is typically tax-free, so the victim will receive all the money.

The Right to Sell Structured Settlement Payments

You have the right to sell your structured settlement when you need a lump sum of money. Different people have different reasons for selling their structured settlement. Some of these include foreclosure, paying off debt, or a family emergency. To ensure a successful process, you need to research a viable, transparent, and reputable factoring company. Consider structured settlement companies like We Pay More Funding to avoid a major loss. You can sell the whole structured settlement or a portion of it. Always do research and put every detail of the deal in writing. Don’t forget to read the terms and conditions carefully, as there may be fees that put you at a greater loss.

Seek Court Approval 

You should know that, before selling the structured settlement, you have to appear before the judge. The judge will ask you questions to determine if your intentions are in your best interest. The judge may also determine how those depending on you get taken care of, as it will be for the whole family‚Äôs interest. The structural settlement buyer will help guide you on the process and prepare the paperwork. 

Rules and Regulations

The structure settlement act was enacted in 1982, which streamlined the settlement in case of personal injury lawsuits. This payment was considered viable and a way to avoid victims using all the lump sum money and jeopardizing their future financial status. These structured payments were exempted from all taxes to help victims receive all the money they were awarded. However, to get the structured settlement or sell it after receiving it requires judicial approval, in which the judge determines if you are viable and acting in the best interest of the victim.


A structured settlement can be arranged in multiple ways by the court. This kind of payment has helped victims of personal injury get compensation for the loss they have incurred and will incur in the future as a result of the injury.