Considering that there is now this whole industry that focuses on structured settlements annuities trade, it should not be a surprise to any one to note that many recipients of structured payments annuities (and the guaranteed revenue stream resulting from the periodic payment arrangements thereof) are selling it off for a lump sum cash payout.

Structured payment arrangements are primarily designed to provide a steady, guaranteed revenue stream for an injured party. The government provides significant tax subsidy to those that resist the temptation of holding in their hands a large bundle of cash received in the form of a one-time lump sum payout. Many recipients are indeed taking the safer route and opting for the steady, and reliable revenue stream that is guaranteed to provide for their ongoing needs and desires.

It is surprising to note that despite the significant tax subsidy being extended to structured payments arrangements, it appears that the majority of personal injury settlement awards are being paid as lump sum payments, and not in the form of structured settlement arrangements.

Historically, for most lawsuits that have involved a structured settlement, the insurers seems to have paid approximately half of the total settlement amount as an annuity, and the remaining half as a lump sum.

Considering the significant amount of tax subsidies that are being extended to the Injured parties -in return for opting for a structured, long term payment arrangement -one would have thought that a majority of recipients would have elected to be compensated in the form of structured annuities that guarantee regular/steady revenue stream over many years.