A structured settlement is the result of a favourable decision of the courts in personal injury torts on which the plaintiff will be entitled to a series of payments that is normally set to last for a span of twenty to thirty years. This type of settlement gives the plaintiff a lot of choices as to how he would utilize it as an asset. In most cases, the awarded party chooses to keep the settlement and wait for the consequent payments for the proceeding years until the settlement agreement has been finally and fully paid in full.
In some cases on the other hand, the plaintiff would choose to sell the structured settlement in exchange for a lump sum. This option is often explored these days on account of certain immediate financial needs. Most plaintiffs are in need of large sums of money for immediate rehabilitation and other health concerns which compels them to look for potential buyers of the settlement. There are certain advantages as well as disadvantages of selling this type of asset that one should be aware of in order to arrive at the best possible decision and not end up wasting such asset.
Selling structured settlement would mean that you would not have to wait years to get money and the amount that you can get your hands on will be significantly larger than the monthly payments you will receive. However, selling would also mean that you will not obtain the full cash equivalent of the settlement. In most cases, only 80%-85% of the total worth of the asset is paid to the seller plaintiff. If you think that the loss is something that you can afford to have in exchange for the speedy acquisition of cash, there are many financial companies to which you can sell your settlement easily.
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