Benefits of the Secondary Market

Secondary Market Benefits

Structured settlements have served an important role in the U.S. legal system since the 1980s. Most often used in personal injury, catastrophic injury, or wrongful death cases, structured settlements offer the person who has been injured a steady, secure income stream over time.

But once that stream of future payments is agreed on, the payment stream can’t be changed.  This limitation led to the development of a secondary market in structured settlements. In the secondary market, individuals can sell all or a portion of their future settlement payments.

Without a secondary market, people who receive payments from structured settlements are denied the flexibility to:

  • Achieve personal or family financial objectives
  • Adapt to changing circumstances in their lives
  • Gain access to assets they already own

In the U.S., the secondary market is regulated by state and federal law. This protects consumers and ensures fairness.