A structured settlement typically pays out cash owed to an injured person through periodic monthly payments over the course of years in the form of an annuity. But, many structured settlements provide a lump-sum option, which gives a single one-time payment. In this article, you will learn more about selling structured settlements for cash to interested parties.

A person receiving a structured settlement has the right to sell the settlement payments for cash if they are no longer able to pay the payments. The process is known as structured annuities, or structured settlements, and is commonly known as “recharacterization.”

To sell structured settlements for cash, the person who received the settlement in the first place has to file a petition with the court that handles annuities. In order to qualify for structured annuities, the person must be suffering from serious physical injuries or disease that has rendered him or her unable to earn a living and must have had sufficient assets before the injury or disease was sustained to be able to pay monthly premiums on the annuity over a certain time period.

The judge will review the person’s case and decide whether or not he or she qualifies for structured annuities. If the judge decides that the person does, then the judge will make a decision regarding how much money will be received as a lump sum payment from the payments. This lump sum amount is determined by the courts based upon the amount of the total payments, the current value of the person’s assets, and other factors that have been discussed with the person. Once the lump sum amount is determined, it is usually sold to a bank or other third party company that purchases structured settlements for cash.

Although a structured annuity is designed to make future payments for a person with disabilities and injuries, selling structured settlements for cash can also be used to supplement the income of people who need extra income now. People with chronic illnesses that make it difficult to work, such as diabetes and heart disease, may qualify for structured settlements for their ongoing medical expenses. Similarly, people who have lost their jobs during a recession and are unable to find new employment may qualify for structured settlements to supplement their wages. The main difference between selling structured settlements for cash and selling them to a third party company is that the former allows a single payment, while the latter allows multiple payments.

When a structured annuity is sold for cash, the payments go directly into the account of the person paying the annuities. Because they are paid out over a specific time period, they can often be withdrawn immediately once the payments are complete. In the past, some companies have allowed structured settlements to be sold to them at any time after the specified dates, but today, more companies prefer to wait until a person has recovered enough from his or her medical condition that he or she is financially able to start paying monthly premiums.