However, if you are the payee and expecting to be paid out all at once, it could be a little disheartening finding out that you will be receiving monthly instalments. That is why third party companies are in business because they are set up to be able to offer you the large sum payment, up front, for your monthly instalments.

The payee is now in a better situation because he/she gets a large sum of money instead of being paid in instalments while the payer continues to pay out the original monthly payments. The instalment check will not be sent to the original payee but the third party company.

This system offers the payee a lot more freedom to do as he/she pleases with the winnings, since a large sum of money is meted out to him. At the same time, it does not put the burden of a large cash outflow on the payer, which is usually an insurance company paying damages as agreed.

There are a variety of options that the payee can consider when thinking about how to spend the money. He/she may consider a financial investment like buying property, going on a month's vacation or fulfilling any other dream he/she may have. The opportunity to make big changes in one's lifestyle is only possible as long as he/she is not tied to monthly instalment checks from the structured settlement.

Let us look at how the third party companies benefit from this type of financial agreement. When they purchase the payees' rights to the structured monthly instalment for one large check, the monthly instalment is invested under a well planned and diversified investment plan. This ensures that they will not run short of cash and their financial future will look bright. Hence, many financial institutions welcome these types of arrangements.

After being awarded monthly payments from a structured settlement, most people will see advertisements from financial institutions and third party companies. It is only after you have done your research should you consider entering into any one of many options, given your unique situation and the nature of your structured settlement.

In case you feel you would rather have a lump sum amount instead of regular monthly checks, you may avail of the services of these companies. It is always advisable to consult a financial professional or an attorney.