structured settlement

Selling a structured settlement can be a great way to get the money you need now instead of waiting for payments to come in overtime. However, it’s important to understand all there is to know about selling a structured settlement before you make any decisions. In this article, we will discuss the basics of selling a structured settlement and what you need to know before moving forward.

What Is a Structured Settlement?

According to the National Association of Insurance Commissioners (NAIC), a structured settlement is “a financial arrangement in which an insurance company or other financially secure organization agrees to make periodic payments, either to an individual or to a third party on that person’s behalf, in return for a lump-sum payment.”

So, in essence, selling a structured settlement is selling your contractual right to receive installment payments in return for a lump-sum payment.

What Are the Benefits of Selling My Structured Settlement?

There are many benefits when it comes to deciding to sell your structured settlement. Some of these benefits include:

1. Getting the Money You Need Now

One of the biggest benefits of selling your structured settlement is getting access to quick cash. For whatever reason, you may need money now instead of waiting for the payments that are due in installments over time. Since many people wait until later in life when medical conditions have worsened to apply for Social Security Disability Insurance (SSDI), they may be subject to increased medical expenses that can’t be covered by their limited income.

2. Avoiding Owing Taxes on Your Settlement Payment

If you’re awarded a lump sum payment, you will not owe taxes on it like you would if receiving installment payments over time. However, each state has its own laws regarding the status of the sale of a structured settlement, so be sure to consult with your accountant or tax professional before moving forward.

3. Getting Out of Debt Faster

If you are dealing with debt, this can be an ideal situation for you. By having access to money now instead of waiting for the monthly payments that will go toward paying off your debts over time, you can get out of debt faster.

4. Making Large Purchases

Have you been looking to make a large purchase, but have yet to save up for it? Perhaps you are hoping to make your dream purchase – whether that is purchasing your first home or moving into a bigger house. Selling your structured settlement in return for one lump sum can help you make that purchase you have been saving up for.

The Benefits of Structured Settlement Protection Plans

While it is possible to sell your structured settlement without the assistance of a structured settlement protection company, many people choose to use the services of one because of the benefits they offer. For example, these companies can protect you by:

Offering Legal Protection

One of the biggest benefits you can get from a structured settlement protection company is legal protection. By using the services of a trusted company, you may be able to avoid having to hire an attorney or consult with one if issues come up as you try to stop receiving installment payments and sell your settlement for a lump sum.

Helping You Avoid Tax Consequences

Structured settlement protection companies can help you avoid having to pay taxes on your settlement payment as a lump sum. If you are awarded a lump sum from the court for your case, not only will you have to pay federal and state taxes on this amount, but you’ll also have to pay taxes on any interest the lump sum has accrued, as it is considered income. So, if you decide to sell your structured settlement and receive a large amount of money, be prepared to pay taxes on all of the money you’ve been awarded.

Offering Flexible Structured Settlement Payment Options

When you sell your settlement through a true structured settlement protection company, you will have the choice of either receiving a lump sum or an ongoing monthly payment. While many people choose to receive their lump sum in return for selling their structured settlement, others may prefer to simply continue receiving monthly payments because this can help them meet their financial obligations and make valuable purchases like paying off debts.


If you’ve been considering selling your structured settlement, you may want to use the services of a trusted and vetted company like Structured Settlement Quotes to help guide you through the process as well as offer protection as you sell your settlement for one lump sum. Not only can these companies make the process simple and stress-free for you, but they can also help you know if you’re getting a fair deal and offer legal protection in case any issues come up that may affect the value of your settlement.