There are a number of ways how a person
can be awarded with a structured settlement. One, if he or she wins a suit from
a personal injury, or other similar cases, or if the person won a lottery, etc.
Because of the large amount of money involved or to prevent the person from
mishandling the money they enter into a contract whereby the recipient agrees
to receive a fixed sum of money every month, or quarterly depending on the
contract. It is usually the defendant of the case or the lottery company who
looks for an insurance company who will make the annuity payments to the
recipient. Normally, the recipient is made to choose on the terms of the
annuity contract.
However, because of unseen circumstances,
the recipients are either forced or choose to sell structured settlement annuity. Among the common reasons are unexpected expenses such as
hospitalization, paying a mortgage, buying a new home or a new car, a child
going to college, or simply they are investing to new business venture. They
may find their annuity insufficient to answer for these expenses. Moreover,
they feel that they do not have the freedom to use their money for the things
they see fit. That’s why they resort into selling their future annuity whether
in half or in full for a lump sum amount of money.
