Many people hold what are called a structured settlements that pay them installments on a monthly basis until the balance of the settlement is paid in full, which in most cases is numbered in years. These settlements often come from insurance payoffs, lottery winnings, trusts or any number of financial arrangements. People that hold these settlements often prefer to sell the settlement to a financial institution for a lump sum payment of cash.
People that choose to sell their structured settlement should seek the advice of a certified financial planner before agreeing to sell. Seeking professional advice can help avoid mistakes that can later lead to financial hardship, especially if the monthly income provided by the settlement is used for monthly expenses. A one time consultation fee to meet with a certified financial planner is well worth the expense when compared to the financial mistakes that could be made should a structured settlement be sold without sound financial advice.