Buying Structured Settlement : A Starter Guide

The ideas of “Structured Settlement” have been in the market for quite a long time now. Aging back to 40 years, this procedure of buying structured settlement annuity or practice has been incorporated in nearly every layers of the society.

The complicated term when explained in a simpler ways, opens up the eyes well and gives a person enough reason for proceeding on this route of payment and life settlements.

Keeping aside the legal languages and terms to buy structured settlements, this article will enlighten the people with all the information and issues that are associated with it and benefits of purchasing or structured settlement like:

  • Significantly higher yields.
  • Fixed income over a defined period of time.
  • Preserve principal for future years.
  • Increase the yields in personal holdings
  • Maximize income at retirement.

Buying Structured Settlement :

Buying structured settlements secondary market unlike the term is simple and extremely easy to understand. It is a financial arrangement that benefits the claimant. In this method of resolving, the claimant decides to resolve a personal injury by receiving regular periodic payments stretched over a period of time or schedule.

This method of receiving money over a due course of time is way more benefiting that receiving a lump sum amount at once. Structured Settlement gives one, the advantage of having a certain amount of money regularly rather than having a lot at once and spending a lot too quickly.

Read More : How Do Structured Settlements Work?

The Procedure:

There are a number of ways one has to go through and thorough in order to buy structured settlement leads, for themselves or for their close ones. Reserving the case is the first step of buying a structured settlement. Reviewing and reserving the offer is the very first foot forward to have a successful settlement.

Filling out of documents, helps the companies gain knowledge about structured settlement buyers is the following step one goes through.

Purchase agreement, is the next primary legal step that authenticates the buyer-seller agreement and helps it go in the respective record books. Receiving of Buyer notification for the companies is an important step to follow and the next steps are funding and closing the purchase. This whole process of buying a structured settlement usually consumes something in between 30-90 days, but ensuring a future safe destiny for the buyer and teaches you how to invest in structured settlement payments.

Like every other settlement, Structured Settlement also has pros and cons associated with it.


It is known for providing the plaintiff with a “substantial benefit in tax”. Structured Settlement or personal injury settlements are contemplated as “tax fee”.

This type of settlement allows the plaintiffs a dogmatism of alimony over a fixed period of time, ensuring an advantage of customary payment throughout.

Structured annuity settlements often help the parties, who are far away in reaching a settlement negotiation to command to accession compatible to both the litigant and the defendant.


There are always certain parts of the settlements that can be taxed, which includes correctional compensations, attorney fees, and stemming from injuries and more as well.

In accordance to the agreements of buying structured settlement, the claimant is liable to a certain amount of money on a regular interval. But one should understand that unknown and unfortunate backlogs in the economy can lead to payments from annuity become too small.

The lack of flexibility in a annuity structured settlement is the biggest disadvantage related to it. A set term cannot be fabricated or altered and the wait is must to get paid. It devoid the claimants of receiving money in case of an emergency or cash need.

Also Buying structured settlement holds back any investment opportunities form the part of the plaintiff as money will come in the time it is entitled to.