Many people have structured settlements that come from various sources including malpractice cases or insurance cases they have won and been awarded the settlements by the courts. These settlements are paid in installments on a monthly basis over a set period of months or years rather than a lump sum cash pay out. Very often people that hold structured settlements find that they need the cash for such things as purchasing a new car, buying a new home or to pay for college.
One option available to structured note holders is to sell the settlement to a financial institution or a private investor. The upside is the seller receives a lump sum of cash to use for whatever they choose. The down side is they must sell the settlement at a discount since the settlement buyer is assuming risk over the term of the note. Since the settlement will be sold at a discount, due diligence and serious research into future financial requirements should be considered before agreeing to sell a structured settlement.