Prior to the establishment of structured settlements damages paid out during settlement of personal physical injury cases were distributed in the form of a lump-sum cash payment to the plaintiff.
This windfall was intended to provide for a lifetime of medical and income needs. The claimant or his/her family was then forced into the position of becoming the manager of a large sum of money. In an effort to create a more financially stable arrangement for the claimant, structured settlements were developed.

Structured settlements are an alternative to a lump sum cash payment in the resolution of personal physical injury, wrongful death, or workers' compensation cases. Structured settlements usually consists of two components: an up-front cash payment to provide for immediate needs and a series of future periodic payments which are funded by the defendant's purchase of an annuity policy or United States Treasury Securities. Those payers make payments directly to the claimant. In the unfortunate event of the claimant's death, a guaranteed portion of structured settlements may be directed to a beneficiary or his/her estate.
Structured settlements are a guaranteed source of funds paid to the claimant or his/her family on a TAX-FREE basis. Section 104(a)(2) of the U.S. Internal Revenue Code states that compensation for personal physical injuries or sickness - whether paid as a lump sum or as periodic payments (structured settlements) - shall be tax-free. It is difficult for even the most confident investor to match the rate-of-return guaranteed of structured settlements.

There are often times after you received your structured settlements that a need for cash comes up. If you are in one of these situations where you are interested in acquiring up front cash payments from your structured settlements or if you want to know more information on the process itself it's our goal to be your guide throughout the process. You can be assured that Sovereign Funding Group will always act professionally, in your best interest and with complete confidentiality. With over 100 funding sources available, we can accommodate virtually any type of financial request locally, nationally or internationally. Learn more about structured settlements buyouts.