Purchasing Structured Settlements as Investments

You may have heard it’s possible to buy the rights to another person’s future structured settlement payments in order to get fixed income with a great yield. In this post we explain what kind of asset structured settlements are, how they compare to other fixed-income assets, how to connect with structured settlement sellers on our platform, and things to consider when purchasing a structured settlement.

What is a structured settlement?

A structured settlement is an alternative financial agreement to an immediate lump sum payout after the conclusion of a lawsuit. Structured settlements provide plaintiffs with periodic payments instead of the entire settlement at once in the form of a lump sum. Structured settlements have some benefits in guaranteeing tax-free future income for individuals who may no longer be able to work. This process was made possible in 1982 when Congress amended the federal tax code. The Periodic Payment Settlement Act of 1982 (Public Law 97-473) formally recognizes and encourages the use of structured settlements in physical injury and wrongful death cases.

What if an individual with a structured settlement annuity needs a large sum of cash immediately? If they qualify legally to do so, they may transfer the rights to their future structured settlement payments to an institution or another individual – a “buyer” – in exchange for cash now.

How does a structured settlement stack up as an investment?

CrowFly provides qualified individuals with access to purchasing guaranteed structured settlement annuity payments through an online marketplace. As described above, individuals who need funds now can transfer the rights to their future payments at a discount. The result for the buyer is a defined set of guaranteed payments from top-tier insurance companies with a great yield.

Investors like you who are looking for fixed-income investments often look to treasuries, bonds, municipal bonds, or annuities. Structured settlement payments are guaranteed by an insurance company’s annuity policy, similar to how you would purchase from the insurance company directly. The rights to payments from someone else’s policy are simply transferred to you. So you’ll end up with payments with the same safety and security as an annuity that you would purchase on the market.

How to purchase a structured settlement

CrowFly has streamlined the buying process by directly connecting pre-vetted buyers like you with sellers of structured settlement assets on an online platform. The process minimizes the transaction cost of a pass-through agent, so you pay less for the asset, and annuitants receive more for their settlement. It’s a win-win that also performs a social good by improving outcomes for injured individuals with urgent financial needs.

The process begins when you submit your information to CrowFly through our secure online portal for our team to review and approve. We ensure every potential buyer is an eligible purchaser. This vetting process includes a background check validating your personal information to ensure that we accurately identify who you are.

Once our team has determined you are eligible to buy the rights to structured settlement payments, we will grant you access to our platform. Our online platform includes resources to help you find and initiate the transfer of available assets.

Table 1. Example of structured settlement assets listed on our platform.

Browsing our marketplace is free, anonymous, and easy-to-use. While CrowFly provides the necessary tools to support the settlement transfer process and the data needed to make an informed decision. we encourage all buyers to consult with a financial advisor before taking action. 

Once you find an asset that fits your investing needs, we will work with you to reconfirm your intention to buy, confirm adherence to legal terms, and ensure that you have appropriate funds to finalize the deal. In some cases, we may need to collect a deposit.

Once a transaction is finalized, you will receive a full closing book with the annuity policy details, the court order insurance acknowledgement, and other materials for your records. Then -- like with other fixed-income assets -- you can sit back, collect your payments, and enjoy high yields! Visit our page for structured settlement buyers or contact us to get started today.