How Do Structured Settlements Work?


A structured settlement is one of the ways to get money when settling a lawsuit. However, this option isn’t always the best for everyone. So if you have a structured settlement and are considering selling your future payments, here are some things you should know to help you understand how it works.

1.What is a Structured Settlement?

A structured settlement is a way of receiving money from a lawsuit. It’s set up through an annuity. The name “structured settlement” refers to the structure of payments, installments over time instead of all at once. A structured settlement is essentially an alternative form of receiving compensation from your lawsuit, in which you agree to accept money over time rather than all at once.

Structured settlements are used as part of a monetary award, whether due to a personal injury claim or wrongful death in order to provide financial help with medical bills or lost wages, also called third-party recovery. You can search “sell my structured settlement” if you find yourself in need of the money from your structured settlement faster.

2.The Pros and Cons of Settling for a Structured Settlement


You will receive your money promptly from the insurance company as scheduled. That can be beneficial because if managed well with no unexpected large expenses arising, it can help you stay in good financial shape.


The amount you receive may not be as much as you need as time goes on and things arise in life that may require a larger lump sum of money to take care of. If this happens, seeking advice from a reputable structured settlement company can help towards resolving this issue by way of selling your future payments. Understanding the worth of your structured settlement is crucial for this reason. We Pay More Funding will help you get more cash faster if you ever want to sell your future payments.

3.Selling Your Structured Settlement Payments

Selling your structured settlement is a good option if you can find other ways to use or invest the money. You may have received it as compensation for personal injury, medical malpractice, or car crashes. When you sell your payment rights to an investment company, they pay you cash and take ownership of those payments. There are several advantages to selling your structured settlement: the biggest is that once the transaction is approved by the court and completed you can use the money however you want (for example, paying off debts or buying a new home).

4.Will Selling My Structured Settlement Affect My Credit?

You might be wondering if selling your structured settlement payments will affect your credit score. The transaction is a sale of future revenues, and thus not the same as a loan, so it won’t affect your credit score in any way. When you sign up to sell a structured settlement annuity, you essentially agree to sell future payments in exchange for one lump sum payment.

When someone purchases your annuity later down the road, they buy the same future payments from you that the original party who made them promised. Hence, selling your structured settlement payment does not affect anything related to loans or credit cards.

5.How to Sell My Structured Settlement

To get started, you’ll want to find a company through the internet or referrals that buy structured settlements. They will ask for more details about your structured settlement and how much money you want to sell it for at the time. They will likely also ask if there has been any change in your circumstances since the last time they looked at the case if you had spoken with them previously.

If so, whether those changes have made it more valuable or less valuable, they should be able to estimate how much your settlement is worth based on these factors. Once the deal is finalized and court approved, they should send out payments per the terms that were agreed upon in the deal!


A structured settlement is one way to get money as a result of a lawsuit. However, many people regret taking this option. If you want to change your settlement by way of selling future payments for a lump sum, We Pay More Funding can help guide you through every step. If you have any questions about a structured settlement and your options, the team will work with you to find the best solution for your situation.

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