Structure Settlement

A structured settlement is a court given agreement between a plaintiff and a defendant that pays the plaintiff in periodic payments over a certain amount of time. This money is usually to cover medical bills and the normal expenses of everyday life. This usually happens when there is an injury victim and this settlement usually takes place in pre-trial court meetings but can also be court ordered if necessary. What usually ends up happening is that the recipient of the money, after a couple years of payments, decides that he or she would rather have a lump sum to be able to pay off bills or just to have some capital. Since the agreement has already been made, and the money comes in set payments, there has to be some kind of middleman to make this transaction possible.
This is where structured settlement companies come in. A structured settlement company has brokers that are willing to buy the settlement at a discounted price in return for giving a lump sum of money. This is a win-win situation for both parties since the victim is able to get some much needed capital and the company is able to wait out the payments and make more money than they actually paid out.
A few things should be noted, however, including the owner of the payment note. If the victim's insurance agency is the owner of the note than a middle man cannot be sold the note without consent of the insurance company.