A structured settlement is an agreement under which one gets paid over a specified period of time instead of a single lump sum in exchange for a release of claim or liability. Such liabilities may arise out of personal injury or other forms of claim such as workers’ compensation.

The payments can be made on monthly or yearly basis, or can even be spread over a recipient’s lifetime. More often than not such settlements include an immediate cash payment and are set up as an annuity usually orchestrated by reliable insurance companies.

However, a variety of compelling reasons like medical expenses or financial emergency may force recipients to sell their structured settlement payments because they need immediate cash and are in no position to wait out the terms of their settlement.