How Structured Settlements Work!

A structured settlement is essentially a financial agreement between an insurance company and an individual. Typically, they are used when a person has been injured in an accident, at their workplace, or through medical negligence. 

Instead of a lump sum payment, structured settlements provide periodic payments for a fixed amount of time. These payments might consist of equal installments, installments of varying amounts, or an upfront lump sum payment with periodic payments to follow. Structured settlement payments might be paid for a short duration or continue for the remainder of the claimant's life. 


People who are entitled to structured settlement payments oftentimes have long-term medical expenses related to the accident. Annuity payments are typically structured to provide the claimant with the means to pay for medical and living expenses; particularly if they are unable to work. 

Structured settlement payments are not subject to income tax and are guaranteed by a legally binding contract. Annuity payments are intended for long-term financial security, so it is imperative to make certain the annuity provider is financially sound.

Before accepting a structured settlement it is essential to understand the pros and cons of doing so. It's wise to seek legal counsel prior to signing any documents, but it's particularly important when developing a structured settlement agreement. 

One of the biggest advantages of structured settlements is they provide income on a regular basis. They can be structured to provide the claimant with the proper amount of income to cover medical and living expenses. 

Another advantage of structured settlements is they are oftentimes settled out of court. Not only does this reduce stress for the claimant, it also reduces costs, which can result in more money being paid to the claimant.

The downside of annuity payments is once the settlement is agreed upon it is nearly impossible to change it. Doing so can alter the tax classification and may result in the claimant being charged with income tax. If structured settlements payments are made to an estate, they are free from income tax, but subject to estate tax. Make certain you understand the tax liabilities before signing off on the structured settlement agreement.

While structured settlements provide a consistent stream of income, there may come a time when you are in need of a lump sum of cash. You might need to buy a new automobile, send your child to college, or have unexpected medical expenses. Perhaps you'd like to have all of your structured settlement money now and not have to wait for years on end.

If so, selling your annuity payments might be the solution for you. Companies such as Simon Volkov purchase structured settlements and provide claimants with a lump sum of cash. Regardless of where you're at in the execution of your annuity payments, if you're in need of cash, we can help.

Simon Volkov is a distinguished leader in structured settlements and has helped hundreds of clients liquidate their cash flow. To learn more about selling your annuity payments for a lump sum of cash, simply fill out the requested information on our secure Structured Settlement form. 

There is no fee to consult with Simon Volkov, nor any obligation to sell your structured settlement. However, should you decide selling is in your best interest, we can take care of all the details for you. 

Your information will be held in the strictest confidence and we will never share it with others. We look forward to speaking with you and helping you with your financial decisions. 

Structured Settlement Company

A structured settlement company is an organization which assists individuals who have been seriously injured. They work with both claimants and defendants to negotiate compensation plans for the injured party.

Most structured settlement companies employ consultants who have specialized backgrounds. Staff members consist of individuals well-versed in Worker's Compensation, medical malpractice, law, finance, casualty claims and commercial liability.

Instead of paying lump sum cash payments, structured settlements provide consistent income 
over time. Typically, an individual must incur losses of $10,000 or more to qualify for a structured settlement. However, if the case involves minor children, losses of $5,000 qualify.

In the early 1970s, the Internal Revenue Service implemented rulings regarding payments made to injured parties. The ruling allowed individuals to receive structured settlement payments free from federal taxation. Prior to the ruling injured parties were compensated with lump sum cash payments subject to taxation.

Structured settlements are usually funded by an annuity purchased from a life insurance company by the defendant. The most common annuities purchased are those that pay fixed amounts over a specific period of time. However, every structured settlement is unique and can be setup in whatever manner best suits the needs of the claimant. 

For instance, if the claimant has to undergo medical procedures every six months, the structured settlement can be arranged to provide additional funds to cover associated costs. The claimant might receive $1000 for five months, $5000 the sixth month, $1000 for five more months and another $5000 payment. 

A structured settlement company can assist the claimant in obtaining the funds he needs, when he needs them. A variety of consultants may work on the case to ensure the injured party is compensated for both current and future expenses. Additionally, the structured settlement company will manage the account portfolio and make financial investments. 

Structured settlements offer many benefits. Using the services of a structured settlement company can ensure the claimant obtains those benefits. First and foremost, structured settlement companies can make certain both principal and interest income is tax-free. Well-established structured settlement companies have access to multiple life insurance companies which allows them to obtain the best annuity for the injured party. 

Structured settlement consultants can design plans to match current and future financial needs. Provisions for inflation can be included. Payments can be structured on a weekly, bi-monthly, monthly or quarterly basis. They can be paid for a period of years or throughout the lifetime of the claimant. 

Due to the vast array of options, it's wise to work with a structured settlement company. These experts can guide individuals through the maze of structured settlement options and ensure claimants obtain the best deal possible.

Cash for Structured Settlement

Obtaining cash for structured settlement payments is a rather complex process. Before making the decision to cash in your structured settlement, it's important to understand how the process works.

You can receive cash for structured settlement payments by selling your note payable to an annuity broker or financial institution. There are numerous companies who offer lump sum cash payments in exchange for annuity payments. However, it is important to scrutinize the individual or company offering the deal. 

When selling structured settlement payments you will be required to sign legal documents assigning the rights to your future payments over to the investor. Depending on your financial circumstances you may choose to sell all future payments or only a portion of them. 

Let's say you have a structured settlement valued at $100,000 and paid out over 10 years. You receive $10,000 per year. Now, let's say you are in need of $10,000 cash. Instead of selling the entire structured settlement, you can sell one year of payments in exchange for a lump sum cash payment. After the $10,000 has been repaid to the investor through the assignment of payments, the annuity payments will resume and be paid directly to you.

The first thing you will need to do before selling your structured settlement payments is to determine how much money you need. Oftentimes, people sell their structured settlement to pay off medical expenses, debts or college tuition. Others are in need of quick cash for investment purposes such as buying real estate or stocks and bonds. 

Prior to selling structured settlement payments the seller must obtain court approval. A judge reviews the case to determine if the seller will benefit from the transaction. As long as there is a genuine need for the transaction, the judge will normally approve the request. However, if the judge denies the request, structured settlement purchasing companies may be able to help the seller take the necessary steps to obtain authorization from the court.

When working with a structured settlement investor you will be required to provide details about the note. The investor will need documentation of the transaction including the name of the insurance company and the exact dates and monetary amounts you receive. 

The investor will review the structured settlement to determine its present day value. Afterwards, the investor will contact you to discuss payment options. Once the terms have been agreed upon, legal documents will be filed with the court. Upon approval from the court, it usually takes between 6 and 8 weeks to receive cash for structured settlements. 

Types of Structured Settlements

Structured settlements have been utilized in the United States as an alternative to lump sum cash payments for more than 30 years. Essentially, structured settlements are a financial arrangement used to compensate individuals who have been injured due to the negligence of another person or organization.

Oftentimes, structured settlements are used when an individual is awarded a large sum of money. Instead of paying one large payment, smaller payments are made over a period of time. These payments may be issued monthly, quarterly, semi-annually or annually. 


Structured settlements are usually backed by an annuity, which is similar to Certificates of Deposit (CDs) sold by banks. Annuities are invested and thereby help to expand the individual's financial portfolio. Structured settlement payments are tax-free; however, investment proceeds are subject to both state and federal taxation. 

There are different types of structured settlements; each designed to suit the individual's financial needs. Some are paid over a certain period of time, while others are paid for the remainder of the recipient's life. 

Structured settlements paid over a period of time are known as "Designated Period" or "Period Certain Annuities." With this arrangement, the recipient receives a set amount of money at a specific time (monthly, annually, etc.) for a set number of years. Should the recipient die before the structured settlement is fully paid, the remainder is paid to the designated beneficiary.

Another type of annuity is the Life Annuity. In some cases structured settlement payments are paid for the lifetime of the recipient. However, in other cases "life" may actually refer to a certain number of years based on the recipient's life expectancy. Also referred to as "Period Certain," this type of annuity will transfer to the beneficiary if the recipient dies prior to the designated number of years. 

Lump Sum annuities allow recipient's to receive a lump sum payment at a future date. Many people who have children choose the lump sum structured settlement, as it allows them access to college funding. There are two types of lump sum annuities -- "Lump Sum" and "Life Contingent Lump Sum." The first allows transfer of the annuity to a designated beneficiary, while the second does not.

Life Annuities are structured settlements that pay monthly payments for life. There are two types of life annuities -- "Life Only" and "Joint and Survivor." Life Only offers no beneficiary provision, whereas Joint and Survivor continues payments to the beneficiary for the remainder of their life. 

Last, but least, is the Temporary Life Annuity. This type of structured settlement pays regular payments for a specific number of years. The annuity ends when the recipient dies, as there is no beneficiary provision. 

Structured settlements can provide financial security for a long period of time. The main drawback is once the papers are signed, there is no way to change structure of the settlement. If unexpected expenses occur, money cannot be withdrawn from the account. 

When emergency funds are needed, a solution is to sell all or part of the structured settlement to a note buyer such as Simon Volkov. Selling structured settlement payments for a lump sum of cash is a quick and easy way to obtain the money you need.

If you are interested in selling structured settlement payments, Simon Volkov would like to talk with you. We are a distinguished leader in the financial industry and have helped hundreds of individual's through the process of selling financial notes.

There is no fee to speak with our highly trained professional consultants. To get started, fill out the requested information via our secure Structured Settlements form.

Upon receipt of your information, one of our consultants will contact you within 48 hours. Your information is held in the strictest confidence and we never share it with others. We look forward to speaking with you and helping you with your financial decisions. 

Sell Structured Settlement

Did you know you can sell structured settlement payments for a lump sum cash payment? There are many financial companies and private investors who offer lump sum cash payments in exchange for future annuity payments. However, it is important to understand the process and scrutinize the individual or company offering the deal.

When you sell structured settlement payments to an investor or financial institution you will be required to assign your rights to future payments over to the buyer. When you assign the rights, the insurance company will send payments to the individual or organization you sell your structured settlement to. You can sell all or a portion of future structured settlement payments.

Experts recommend selling only a portion of structured settlement payments whenever possible. The reason being, investors who purchase annuity payments do so at a cost lower than the value of the settlement. For instance, if you were to sell structured settlement payments valued at $100,000; you will only receive approximately $65,000. Additionally, you would lose accrued interest on future payments. So, unless there is a dire emergency that requires you to sell your entire structured settlement, it's wise to hold on to a portion of it.

Before you can sell structured settlement payments you will need to: 

 Determine how much money you need.
. Gather structured settlement details including contact information for the insurance company who provides the payments, the amount of payments, and the dates you will receive them.
. Conduct research to locate a structured settlement investor or investment company.
. Obtain permission to sell structured settlement payments from the court.

Once you locate a buyer for your structured settlement, papers will need to be filed with the court. A judge must review your case to determine if selling your structured settlement is in your best interest. 

Many people choose to sell structured settlement payments in order to pay off debts such as their mortgage or medical bills. Others may want money to invest in real estate, stocks, bonds or other investment opportunities. When you sell structured settlement payments, you can do whatever you like with the money. Just remember, you need to show just cause to the court in order to obtain permission to sell your structured settlement. 

When looking for a financial company or private investor to purchase your annuity payments, it's important to conduct research and thoroughly investigate them prior to signing any documents. After all, it's your money and you do not want to lose it to unscrupulous people. 

Always check with the Better Business Bureau and ask for references. Then follow-up with those references and ask detailed questions. Remember, people can be deceptive and provide false references, so always use caution when working with individuals who offer to pay you cash in exchange for the selling future structured settlement payments. 

Obtaining cash for structured settlement payments is a rather complex process. Working with a professional organization such as Simon Volkov can simplify the process. To learn more about how to sell structured settlement payments or to arrange for a free consultation, fill out the structured settlement form. Upon receipt of your information, one of our structured settlement specialists will contact you to further discuss your financial needs

What Are Structured Settlements And How Do They Work?

Structured settlements are used to compensate individuals who have been awarded a large sum of money. They are most commonly used when an individual has been seriously injured or disabled due to the negligence of another individual or organization. They are also frequently used to pay jackpot lottery winnings.

Instead of paying a lump sum of cash, structured settlements are paid out over a period of time. Payments can be issued monthly, quarterly, semi-annually or annually. These payments are backed by an annuity distributed through life insurance companies. Structured settlement payments are tax-free.

There are many types of structured settlements. Each is designed to suit the individual's financial requirements. Some are paid for a specific period of time, while others are paid for the remainder of the recipient's life.

When structured settlements are paid over a period of time, it is referred to as "Designated Period" or "Period Certain Annuities". What this means is the recipient will receive a set amount of money at a specific time (monthly, annually) for a predetermined number of years. If the recipient dies before the structured settlement is paid in full, the remainder will be distributed to the designated beneficiary.

Life annuity structured settlements are paid to the recipient for the remainder of their lifetime. It's important to note in many cases "life" may actually refer to a certain number of years based on the individual's life expectancy. Also referred to as "Period Certain", this type of structured settlement annuity will transfer to the beneficiary if the recipient passes away prior to the designated number of years.

Lump sum annuities provide a lump sum payment at a future date. This type of structured settlement is enticing to people who have children. The funds can be arranged to pay out when the child enters college and helps to pay for educational expenses. Two types of lump sum annuities are available -- "Lump Sum" and "Life Contingent Lump Sum." The first allows transfer of the annuity to a designated beneficiary, while the second does not.

Life annuities provide monthly structured settlement payments for life. Two types of life annuities are available -- "Life Only" and "Joint and Survivor." The first offers no provision to assign a beneficiary, whereas the second continues payments to the beneficiary for the remainder of their life.

Last, but least, is the Temporary Life Annuity. This type of structured settlement pays regular payments for a specific number of years. The annuity ends when the recipient dies, as there is no beneficiary provision.

While structured settlements provide long-term financial security, there are a few drawbacks. The main drawback is once the papers are signed, there is no way to change them. If unexpected expenses occur, money cannot be withdrawn from the account.

Drafting structured settlements is a complex process which requires the skills of an attorney who is well-versed in this area of law. Careful consideration must be taken into account when drafting these complex documents. When structured settlements are properly drafted they can provide the recipient with necessary funding and peace of mind.

By: Simon Volkov