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There are many situations in which you are awarded a structured settlement. However, this payment-over-time scheme might not benefit you. If you need money immediately, a structured settlement is not going to do the job. However, a structured settlement company might choose to buy this payment plan arrangement from you. While they will be offering you less than the total value of the payment over time, it might be to your benefit to accept less money, considering that you need the money immediately.

A good structured settlement company will offer an amount that is very fair. While you should expect them to turn a profit in exchange for the access to immediate capital, they need to provide a payment which is reasonable. Often going through a broker to try your luck with different structured settlement company options can result in a better deal. 

Not everyone can afford to sit on their hands waiting for small payments. If you are awarded a structured settlement for an insurance claim, for example, you might have need to repair the damages incurred immediately. This is where a structured settlement would be positively inferior to receiving a lower lump sum. While you won’t make as much money over time, you will have access to the capital when you need it. Considering the fact that fiat currency tends to inflate over time, you may actually be receiving more buying power with the reduced lump sum. This is a scenario where a structured settlement company can be very helpful in assisting you with your need for immediate capital.

The structured settlement is a common way that many parties will satisfy required payments for tort damages or other payoffs. This can be unfortunate for the recipient who needs the cash right now. Luckily, a structured settlement company can empower you to take charge of your situation. If you allow them to bid against each other, you can get a very favorable deal. This will help you recover damages or pay bills. 

Consider contacting a structured settlement company if you need a lump sum in exchange for your structured settlement. It is important to consider all of the different factors that influence whether or not this decision is right for you. However, opening a line of communication is always a good idea. The more options you have available, the better the arrangement you will receive.

This Financial Services article was written by George Mandala on 11/4/2009

George is a Financial Consultant