Why People Want To Sell Structured Settlement

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.