How do I sell my Structured Settlement Payments?

Life comes at you fast. Sometimes you have unexpected expenses or you have business plans that you want to develop. You or your loved ones might be attending college and you would prefer to have a lump sum payment in cash of your structured settlement. A lump sum payment can help you to cover these financial obligations better than periodic payments that a structured settlement provides.

The process for selling your structured settlement is fairly well defined. Once you make the decision to sell for a valid reason, you need to search for the best price that offers you the most cash. You and representatives of the buyer need to appear before a judge to ensure that you are selling for a valid reason and to make sure the buyer is fulfilling their obligations to you.


5 steps to sell your structured settlement for cash


  1. Decide to sell a structured settlement – There are a number of legitimate reasons you can provide to legally sell your structured settlement. Some of the most common are education expenses, home improvements and business ventures. Once you have determined a present need that outways your future benefits you have taken the first step.


  1. Find a company to buy your structured settlement – There are many companies that are ready to offer you cash for your structured settlement. You need to shop around to see who will offer you the most money. Different companies have different priorities in terms of the deals that they make so not all companies will offer you the same amount. Some less well known companies could offer you significantly more money.


  1. Decide on a company and initiate paperwork to sell – To effectively sell your structured settlement there is some paperwork that needs to be completed. It is not highly complex nor time consuming to complete the required paperwork so it can be done quickly. You will need to provide copies of your settlement annuity policy detailing all aspects of your financial asset. The buying company will have you complete a selling agreement to formalize your intention to sell to them. You will need to provide your name, ID and contact information. The buying company will take your information to a lawyer they work with to verify all the materials you provide to ensure the sale can take place as quickly as possible.


  1. Set date for judge review – Once all your supporting documents have been reviewed by the structured settlement buying company they will submit the request for sale and transfer before a judge. This step is vital as it is meant to protect the seller and ensure that everything is done with the best interest of the seller in mind. The judge will determine if your reason for selling is justified. As long as you demonstrate a reasonable justification and the buying company has complied with all legal requirements the judge will likely approve of the sale. The time it takes to go before a judge can vary widely based on events outside the control of either the buyer or seller. Be prepaired to wait a few weeks at this stage.


  1. Receive your cash – Once the judge approves of the sale the judge will sign the required court documents allowing the transfer to take place. The buyer should transfer your money to you within a matter of days after the court approves the sale.

What is a Structured Settlement?

Structured settlement annuities are a great financial product. They allow you to receive guaranteed income tax free as part of a settment for a personal injury or other court determined reason for an extended period of time. The beneficiary is protected from the worries market ups and downs that come with investing a lump sum payment. With a guaranteed income stream the beneficiary is protected related to their injury related expenses.


What discount rate is normal when selling Structured Settlements?

The discount rate you are offered all depends on the company making the offer. This is why it is important that you obtain several offers for your annuity and structured settlement. The discount rate is the interest rate used to determine the value of your annuity. The lower the discount rate used the more cash you will get. Different companies have different priorities in investing and will offer you a higher or lower discount rate based on their investing priority. Companies can normally offer you a discount rate between 12% and 24% with the average rate falling in the middle. Factors like time to maturity, size of payments, number of payments and which insurance company pays the annuity are all factors that influence the discount rate. If you have any questions about how to obtain the best rate please contact us with your information and we will help you to get the best rate.


How long does it take to sell my Structured Payments?

Due to the necessary paperwork involved the average time it takes to sell your structured settlement and receive your cash is about 6-8 weeks. Each case is a little different as each state has their own laws governing how the sales process works. Therefore once you have made the decision to sell your annuity it is best to start sooner rather than later to complete the process as quickly as possible.


Can you help me choose a Structured Settlement company to work with?

Every day we provide people with useful information to help them get the most money for their structured settlements and annuities. We have identified the biggest names in the industry and are happy to help you contact them to find the best deal which gets you the most cash in the shortest amount of time. When working with a structured settlement company you need to view it as a mutually beneficial agreement. You should only work with someone that really wants to work with you. You should work with a company that treats you with respect and values your situation. Stay away from high pressure sales people who try to force you into a situation that does not benefit you. Selling your annuity or structured settlement is not a decision to be made on a whim and thorough research is required. We can help you with that. Let us know about your situation and we can help you to find the best offers with companies that will treat you with the respect you deserve.