When Payments Hurt

There are plenty of reasons why people decide to sell their structured settlement payments, and the decision may have nothing to do with needing money.  That may sound kind of weird on the surface, but here is a good example of what I am talking about.

My neighbor had a serious car accident years ago and was awarded a large amount of money.  The structured settlement was designed to make payments monthly over a 20 year period.  After collecting settlement payments for 5 years, he passed away.  The settlement payment was split between his two daughters.

I was friends with one of the daughters and she did not like getting the payment each month.  She didn’t need the money, and each payment reminded her of her father.  Her sister felt the same way.  So they each sold their share of the structured settlement payments.  Each sister got a lump sum settlement and didn’t have to face the reminder of their father’s passing each month.