Individuals involved in legal claims for personal injury often accept a structured settlement in which they receive regular, fixed payments over a set period of years and/or lump sums at stipulated times from an annuity. As circumstances change, the annuitants may find that they need cash now instead of payments later. Using the services of a factoring company, they sell future payments at a discount for cash. Financial Partners, in turn, offers the payment rights to these annuities, called Secondary Market Structured Settlements, to buyers, who invest in structured settlement. The purchase process can take 30 to 90 days, and requires that the individual selling the payments receive approval to sell from a court of competent jurisdiction (even if it was an out-of-court settlement!) for a change in the terms of their settlement.
The future income stream is generally a fixed, definite payment contract. It may include lump sums, annual increases, deferral periods, or it may be contingent on the lifespan of the seller. Typically, the Secondary Market Structured Settlement payments are made regardless of whether or not the existing annuitant or the buyer is alive, meaning these payments are not contingent on any individual’s life.
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