My Structured Settlement

My Structured Settlement

The Negatives of a Structured Settlement

We outlined the several positive attributes of having a structured settlement in a previous article. However, there is one primary negative factory of having this type of settlement. That is your original settlement agreement is inflexible.

While it is rare there are those that have locked into a settlement and find that their live has changed in unforeseen ways. These unexpected life events can be anything from divorce, to marriage to having kids. When a large life change occurs that was unexpected it most likely was not planned for in the original financing structure of the settlement agreement. So one many now have a need for a larger sum of cash but unfortunately the original settlement is unable to be altered. Payments cannot be accelerated nor can they be cashed out for a lump sum.

Industry estimates have over 90% of all structured settlements remain intact through the life of the original agreement. That speaks volumes to those planners in the primary market that set up the agreements to meet the ongoing needs of recipients. Less than ten percent ever end up with these types of life changing events and need for cash however for those in this situation the original settlement is unchangeable.

When this need arose in the marketplace this is what gave birth to the secondary structured settlement industry to help those that fall into this category and have an immediate need for cash. The great news is that a person in this situation does have options and the ability to get the cash they need with a lump sum cash payout.