It is not good practice to sell a structured settlement without a real need for the money. Structured settlement annuities are usually bought as investments and do not provide the necessary benefit when they are sold early. Even though part of the settlement can be sold to raise money for a one time necessity, the entire settlement must be sold only in case of dire emergency when the money cannot be raised in any other manner. Since structured settlements ensure regular periodic payments, many people hesitate to sell the entire settlement at one stretch.


However, in the case of necessity, a structured settlement can prove to be a boon. If possible, only a part of the settlement should be sold unless a lump sum is required as an emergency. In the case that the settlement acts as a worker's compensation settlement, the injured party might no longer require the periodic payments to cover the medical expenses. In such cases the rest of the settlement can be sold to raise a tidy sum for use or investment elsewhere.

Since a finalized structured settlement cannot be negotiated and changed, it is better to look into it before signing. Some contracts might not allow the party to sell off the structured settlement before the time is expired. Also, some contracts might legally bind the party to go through a lot of legalities before selling the structured settlement. A structured settlement broker would be able to provide appropriate advice before entering into a binding contract and can also help with the negotiations before an agreement is reached by either parties.

Brokers might charge a fee in return for their services but their valuable advice is worth it. They can help the clients understand the contract and hence assist them in avoiding a wrong kind of contract.