A structured settlement is a payment made to an injured person regularly, often monthly or yearly, during a period of years rather than an one-time payment when a case gets completed. Settlements like these generally are the result of wrongful death, personal injury, or medical malpractice claims. For the recipient of structured settlement payments, who’re often referred to as annuitants, the preset payment schedule has numerous advantages and comes with a number of drawbacks. Once the person agrees to structured settlement payment arrangement or annuity, they are locked in it with regards to the timetable - they cannot change the structured settlement payment structure in any respect. Though the structured settlement may function in the short term, the illiquidity of the settlement payment schedule provides no flexibility as his or her financial needs change after some time.
In recent times a number of companies have come into existence that can provide structured settlement payment recipients with a large lump sum in exchange for some or all of the annuity settlement payments. Basically, the structured settlement recipient who’s got an immediate need comes to an agreement with such companies to accept an one time payment right now rather than waiting around many years for the payments to become due under the structured settlement. The reasons a person wants to sell some or all of their structured settlement payments for immediate cash vary greatly.
Most of these websites that originate “structured settlement transactions” are agents which match up the structured settlement recipient with an investor. During recent times, private individual investors, rather than institutional investors, have exhibited a lot more interest in acquiring structured settlement payments within this secondary market. In many instances it’s an an attractive opportunity because a structured settlement acquired from the secondary market can pay a better return rather than a similar annuity.
While purchasing a structured settlement from the secondary market can be appealing to an investor, due diligence is necessary. From the point of view of investors, the critically unique aspect to take into consideration in obtaining structured settlement payments in the secondary market is the quality of the brokering company’s underwriting together with its compliance with the various applicable federal and state laws and regulations. Compliance with the legal framework in this field is essential in order to ensure that the investment pays going forward.
The team at TMT Capital Solutions can walk you through the full process and make sure you’re at ease with the product. Our acquisition of structured settlement payment streams is completed pursuant to stringent underwriting mandates and with strict compliance with the law. If you are interested in being familiar with this area or have a plan to acquire structured settlement payments, please contact us at TMTFunding.com
If you are interested in being familiar with this area or have a plan to acquire structured settlement payments, please contact us at TMTFunding.com