What are Structured Settlements? – General Overview

A structured settlement is an agreement for periodic payments to be paid on a regular basis, either monthly, quarterly or annually, over a period of years instead of a one-time payment, in order to satisfy a financial obligation.  Settlements like this usually apply to restitution for damages that result from personal injury lawsuits. In most cases, this is a personal injury caused by negligence, such as a motor vehicle accident, medical malpractice, wrongful death, or injury caused due to the negligence or liability of a property owner. For the recipient of the settlement payments, often referred to as the annuitant, the fixed payment schedule does have many benefits but also has numerous drawbacks.  Once the individual agrees to a structured settlement payment arrangement or annuity, they are locked into the terms of the structured payment schedule.  The structured settlement payment structure cannot be altered in any way once established.  For many annuitants, the structured settlement may work for them in the short-term, however, the ability to liquidate the remaining settlement payments does not exist, should a change in one’s financial needs occur over time.

Many companies provide structured settlement payment recipients with a large lump sum in exchange for some or all of their annuity payments. Essentially, the recipient of the settlement, who has an immediate need, comes to an agreement with these companies to accept a lump sum payment today instead of waiting years and years into the future.  The reasons a person wants to sell some or all of their annuity payments for immediate cash can vary greatly.

Structured settlement buyers have reported that the most common reasons people want to sell their payments is to; satisfy overwhelming debts, pay unexpected expenses, or to resolve a financial emergency they’ve been faced with. Such as:

• Medical bills
• Difficulty meeting mortgage/housing payments
• Divorce
• Foreclosure
• College tuition

Some people will sell their structured settlement simply because they like the idea of having access to their cash and having it in their control.  This is an option that is not always available at the time a settlement is originally constructed. Other people may choose to have their money available and at their disposal now because they feel that their payments may outlive them.

Secondary Market Structured Settlement Annuities

This is where the benefit of selling all or part of the annuitant’s monthly payments for a lump sum of cash becomes advantageous to both the original holder of the annuity as well as an investor. The original structured settlements that are sold for a lump sum create what is known as the structured settlement annuity secondary market.

A secondary market structured settlement annuity often provides a higher return than that of a Traditional Annuity, an Immediate Annuity, a Bond, a Certificate of Deposit (CD) or Money Market fund. This is because the owner of the annuity is willing to sell it at a discount to its appraised value.  This can be a very lucrative investment opportunity for individual investors and investment companies who are looking for 100% – 300% greater rates of return on their investments.

All of MJ Settlements’ structured settlement annuities are guaranteed by the issuing insurance company.  The advantage of buying MJ Settlements annuities is the flexibility we offer in customizing the many different payout options specifically to you.

MJ Settlements‘ Approach

MJ Settlements offers investors diverse investment opportunities with customizable payment streams to suit any financial requirement.  This is an attractive opportunity for an investor because a structured settlement acquired from the secondary market can pay a better return than a CD, Money Market fund, Bond or Traditional Annuity issued by the same company.

We turn our clients and families’ lives around forever. Investors have found peace of mind associated with safety through high yield guaranteed investments that create true wealth in just a few years.

Based on your personal circumstances, we create suitable, non-volatile, time tested, guaranteed income strategies for you in today’s complicated and challenging investment environment.

MJ Settlements does all the homework for you so you don’t have to. We have the expertise, necessary knowledge and know how to find the investments that best suit your needs. MJ Settlementss carefully analyzes every aspect of the structured settlement it acquires and complies with all federal and state  laws and jurisdictional requirements regarding the sale of each secondary market structured settlement annuity.