How does selling your structured settlement work?
While it may not sometimes seem like it, your structured settlement is an asset. The problem is, in their structured form, they are not exactly an asset you have any control over. When you sell your structured settlement payments, you are giving up that money you would have received over a set amount of time, and receiving a lump sum instead.
For this privilege, you will receive a discount rate on your settlements value, which will decrease its final value based on fees, inflation, and the risk the buyer is taking on. In other words, your lump sum will be valued as less than your total amount of payments left. The important thing to keep in mind, is considering the advantage of receiving the money early, a lump sum may still offer certain advantages over the payments, because it opens up the possibility to do more with your money.