How do I sell my Structured Payments ?

How do I sell my Structured Payments ?


You may need to buy or repair a home, start or invest in a business, fund a college education, pay off a debt, divorce or invest. These some valid reasons why you’d like to have lump sum in your hands rather than your periodical payments. The process of selling an annuity or structured settlement is not difficult, but it involves you taking the step to sell, deciding how much to sell and going before a judge to approve your request prior to accessing your cash.

All this process includes five steps:

    Make the decision to sell | you can start the sale of your settlement process if you have valid reasons for it and the sale of your payments will not have any effects on your future financial needs.
    Shop around to find the discount rate and service on your sale | it is important that you work with a funding company that is reputable and has your best interests in mind, uses its own money to fund (is not merely a broker), is experienced in completing the court ordered transfer process, and has A+ rating on the Better Business Bureau and very few complaints, if any.
    Choose the company you like best and start the sales process | you must begin the paperwork process. After you submit the proper paperwork (your annuity policy, settlement agreement or benefit's letter so the transfer company can verify your payments, application, ID), all materials are reviewed to ensure they are complete and accurate.
    Have your sale approved by a judge | once the relevant documents are returned and they are fully signed, a local attorney files them with court and after that the court will schedule a hearing. This is the beginning of the waiting period. In the court you will be required to justify why the money is needed and you should be in a position to show that you are not putting your and your family’s financial future in jeopardy. Unless there are any problems with your request of transfer, the judges mostly approve the transfer at this stage.
    Get your money | Once approved, the judge will sign the order approving your transaction and the order is sent over to the insurance company to wire funds.

How long does it take to sell my Structured Payments?


After you've signed the contract, on average it takes about 45 days to receive your money. However, keep in mind that every structured settlement purchase transaction is different due to each state's laws regulating such purchase transactions. In addition, you may qualify for an immediate cash advance to help you through a particularly tough time.


What discount rate is normal when selling Structured Settlements?


If you are considering selling your annuity, you need to be sure that the offers you are getting are reasonable and fair as you’ll have to get the lump sum reduced by a factor of the projected interest earnings, known as the discount rate. The exact discount rate that you will need to give in order to sell your structured settlement will depend upon the total amount of your settlement payments, the number of payments you have remaining, the date those payments are due to arrive, the number of payments you wish to sell etc. The longer people have to wait to receive their payments, the greater the discount rate will need to be. Discount rates from factoring companies to consumers can range anywhere between 8% up to over 18% but usually average somewhere in the middle. An average discount rate of 12% should be reasonable but there are some companies that will want to take as much as 30% discount.  

Contemplations of Purchasing from Annuitant

Contemplations of Purchasing from Annuitant

1. The exchange procedure encourages a court request of the benefit straightforwardly from the Seller to the Purchaser. The dealer does not claim the Purchase Structured settlement installment rights, and ought not get, hold, or dispense any of the financial specialist's cash. This is NOT a trust, and the Purchase Structured settlement installments are made straightforwardly to the Purchaser from the protection element.

2. The security of the annuity is straightforwardly identified with the cases paying capacity of the protection substance. The assignment of an annuity as an issue "paying" commitment implies that these commitments supersede commitments to investors, investors and different indebted individuals. The protection substances are obliged to hold cashflow to backing these commitments as needed by the pertinent state protection controller. To date, a circumstance has not been accounted for where an insurance agency evaluated An, or better, by Standard & Poors has defaulted on an annuity commitment that underpinned an Purchase Structured settlement, and a corresponding misfortune has come about to the payee. Be that as it may, as the current budgetary markets represent, past history is not an insurance of future results, and there could be future issues that emerge identifying with Purchase Structured settlements that have not existed previously.

3. Annuities, contingent upon the sums owed, are in part or completely ensured by state protection reserves, and are intended to secure annuity holders from misfortune. This may give an extra level of security to the potential Purchaser.

4. Purchase Structured settlements are issued in U.s. dollars. Remote Purchasers ought to consider the effect of trade rates and U.s. withholding expenses on any potential venture.

5. A Purchase Structured settlement may be less fluid than other speculation alternatives. The court request appoints the installment rights straightforwardly to the Purchaser or designee, and any future assignments may require an extra court request. There is no settled auxiliary business for the resale of Purchase Structured settlements and henceforth, Purchasers ought to be arranged to hold the Purchase Structured settlements for the whole term.

6. In assessing Purchase Structured settlement installment rights, Purchasers ought to audit the structure of, and backing for, the installment rights. Case in point, some Purchase Structured settlement installment rights are ensured by the related insurance agency.

7. The Purchase Structured settlement installment rights obtained may be the majority of the installments because of a Plaintiff or just a bit of the installment rights. Since the court will just endorse an exchange that is to the greatest advantage of the Plaintiff, in numerous cases, just a part of the installments can be bought since the price tag for these restricted installments will meet the majority of the Plaintiff's present needs. Since most state insurance trusts have dollar constrains on the sum that they can be committed to pay in admiration to annuities and extra security strategies issued by wiped out insurance agencies, Purchasers ought to be mindful of the measure of the basic annuity that backings the Purchase Structured settlement in respect as far as possible.


8. There are expense contemplations pertinent to buying, gathering, holding and offering Purchase Structured settlements. If you don't mind note that Section 104 of the Internal Revenue Code, which exempts Purchase Structured settlement installments being made to a harmed individual compliant with a settlement, is not relevant to

Purchase Structured settlement Settlements Purchase Structured settlement

Purchase Structured settlement

 Settlements
Purchase Structured settlement

At whatever point an individual annuitant, who is accepting intermittent installments under a Purchase Structured settlement, yearnings to offer some or the majority of their future installments for a bump entirety of cash, the money streams are sold at a markdown in return for the protuberance aggregate installment. This marked down Purchase Structured settlement is then accessible available to be purchased to the Purchaser. This way of securing the installment streams at a rebate straightforwardly from the dealer is the manner by which the Purchaser secures extremely great yields. This exchange is regularly encouraged by a money related dealer for the merchant (or annuitant) and the buyer.



These Purchase Structured settlements ordinarily acquire more than two times the yearly rates of Municipal or Corporate Bonds, Bank Issued Certificates of Deposit (Cd's), or Government Issued Treasury Securities. Financial specialists can surely buy an annuity straightforwardly from an insurance agency, yet these Direct Annuity Investments are sponsored by the same insurance agencies as the Purchase Structured settlements orchestrated by a specialist, and they are commonly begun with extensive deals charges or commissions, and offer generously lower yields.

The significant profits of acquiring these Purchase Structured settlement annuities are:

1. Buyer gets essentially higher yields than Purchaser can secure from tantamount altered rate ventures.

2. Buyer gets an altered salary over a characterized time of time, in light of the particular parameters of the bought Purchase Structured settlement.

3. Buyers can aquire this advantage for expansion the yields in individual possessions, to boost salary at retirement, or to protect primary for future years. They can be obtained by people, retirement plans, corporate elements, establishments, trusts, through speculation clubs, or gathering venture accounts.

4. The Purchase Structured settlement is supported or upheld by annuity contracts issued by an evaluated protection transporter. The protection transporter that issued the annuity contract is state directed and will for the most part have a Standard & Poor's FICO score between "A-" through "AAA".

5. Buyer has control all through the speculation process; Purchaser gets task of the Purchase Structured settlement installment rights straightforwardly from the merchant through an endorsed court support process, and the Purchaser gets the future money streams specifically from the evaluated insurance agency that is committed to make the installments. At no time amid the lifecycle of the advantage ought to the representative have ownership, or control, of the Purchaser's cash.

Things to Look For in a Structured Settlement Buyer

Things to Look For in a Structured Settlement Buyer
It’s no secret that the landscape of structured settlement buyers has dramatically increased over the past few years.  There are several factors for this, ranging from a struggling economy to a growing familiarity with the overall structured settlement process.  This latter reason is due in part to a burgeoning media presence, as a seemingly increased level of television, print, and online advertisements have allowed the public to become more readily familiar with what a structured settlement buyer can bring to the table.
If you have a structured settlement and is in need of turning into cash to help them out of a financial bind, working with a structured settlement buyer could be one of the most important monetary-based decisions you can possibly make.  As such, it is imperative that if you are seeking out cash from a structured settlement, you should do so with plenty of due diligence.
Important Steps
There are a lot of choices that you can make when looking for a structured settlement buyer – so much so, it could be overwhelming at first.  However, a lot of grief over the process of finding the right buyer can be avoided by adhering to the following steps:
Find out what other people are saying about the service – The Internet is virtually driven by people’s opinions.  As a result, it is rather easy to find out what a company’s reputation is by hopping online and hitting a few product review sites.  This will give you a general sketch about how a company operates and how they treat their customers.
Follow up with printed testimonies – Some companies may have testimonies proudly featured on their websites touting the greatness of their services.  While these are usually excellent indicators of a company’s business, you can take things one step further by contacting the companies and people behind the testimonies in an effort to ascertain more details about what made their experience with that particular structured settlement buyer so great.
Don’t forget about the power of friends and family – You should not be afraid to solicit the opinions of friends and loved ones that may have been in a similar situation in the past.  Even a casual acquaintance should be able to give out solid, unsullied opinions about working with a particular structured settlement buyer.  They can also give you reasons as to why a specific structured settlement buyer was not selected.
Keep Things Personal
Of course, even with these steps put in place, you should also make sure that they include your own gut feelings into the mix.  Even if a structured settlement buyer has an excellent reputation, solid testimonies, and provided a cohort with a great experience, if you don’t feel completely comfortable with utilizing their services, you should not use them.  And in many respects, this rule of thumb trumps everything else.  After all, your money and your livelihood hang in the balance of this decision; therefore, why would you not do anything other than work with someone you feel that you can trust?

Why Would You Sell Your Annuity?

Why Would You Sell Your Annuity?
In many ways, an annuity seems to be an ideal long-term investment plan.  It’s easily definable.  There seems to be minimal hoops to jump through in order to set things up.  It comes with the promise of having a structured payment schedule waiting to help you get through your retirement years.
However, it also comes with an intriguing little wrinkle.  That is, it comes with the ability to be sold to a secondary buyer in order to receive cash much sooner than what the schedule dictates.  And considering how many secondary buyers are out there on the market, it’s an option that seems to be rather popular.  But why would someone seek out cash for annuity in the first place?
Life Happens
There are several reasons why a person would want to receive cash for annuity, and they essentially revolve around life events of various importance and circumstance.  Some of these events include:
The purchase of a home – A home is traditionally one of the biggest investments that a person can make.  It also happens to be one of the priciest ones.  Receiving cash for annuity can help a person that needs to scrape together a solid down payment on a home the funds that are needed to take that crucial step.
The funds needed for other investments – There may be an opportunity for a person to invest in what they perceive to be a blue chip business or project – one that could be profitable down the road.  Selling their annuity may afford them the money needed in order to fully or partially bankroll such a project.
The payment of unexpected medical bills – One of the scariest aspects of life is the possibility that a medical emergency may crop up out of the blue.  If a person is not prepared for such a thing, the resultant medical bills may present a massive shock to their wallet.  These bills can be managed or even fully paid off by receiving cash for annuity.
The payment of massive debt – Sometimes life’s tumbles cause people to have to live on loans and credits.  These situations provide short-term relief, but could create long-term financial pain in the form of credit card debt or student loans.  Selling off an annuity can go a long way in alleviating the pressures that build up from these situations.
Long Term vs. Short Term
While the option of cash for annuity gives people a tremendous amount of freedom with their finances, it also comes with a conundrum that must be faced.  That is, if a person does sell their annuity in full, they will not have that money waiting for them later on.  Because of this, it is essential that a person that is thinking about selling their annuity take a long, hard look at the potential long-term ramifications behind such a transaction.  After all, pondering what a person’s financial future may be like is one of the most vital things someone can do, if only because their quality of life is at stake.

Choosing the Proper Structured Settlement Company

Choosing the Proper Structured Settlement Company
If you have been awarded a structured settlement, chances are pretty great that you have already gone through plenty of headaches.  Assuming that your structured settlement was involving a court case of some kind – which is how structured settlements got set up in the first place – you have already gone through having to deal with a lot of paperwork, frustration, and other rather unpleasant things.
The silver lining to all of that, of course, is that you have money coming your way.  However, in the event that you have found yourself in a financial bind due to items like mounting debt or unpaid medical bills, a structured settlement paying you over a fixed period of time may not be good enough.  And that is why getting connected with a structured settlement company is so appealing.  In essence, the right structured settlement company can help get you the money from your structured settlement all at once – money that you can in turn apply to your financial situation to get relief.  But which structured settlement company is right for you?
Things to Look For
In order to answer this question, there are a few questions that you need to constantly ask yourself.  These questions include:
How much of my structured settlement will I see?  When you seek out cash for your structured settlement, a structured settlement company will return roughly 60% to 85% of your settlement to you.  The more of your settlement that you can retain the more desirable the company may be to work with.
What are friends and family saying about them?  If you know someone in your circle of family or friends that had gone through (or is currently going through) a similar scenario with a structured settlement company, it would be wise to solicit their opinion on the overall experience.  Doing so will give you the kind of personal insight that you may not be able to get from a company website or even an online review.
What does the Internet say about them?  That being said, you shouldn’t discount what you may be able to find online about the company.  Obviously, the Internet is chock full of review sites that contain various accounts of experiences with various structured settlement companies, both good and bad.  While it may not give you the kind of intimate portrayal of a company that you may get from a friend or family member, it will paint enough of a picture for you to weigh the pros and cons of their particular service.
A Long Process
As you look to render the services of a structured settlement company, you should bear in mind that the actual process of getting cash from a settlement is far from an overnight experience.  Once a court approves the transaction between you and the company, you can expect to wait at least a month if not more before your money ends up in your hands.  As such, you should prepare yourself to handle your finances as best you can during the interim.  However, as you do so, you can at least carry with you the kind of peace of mind that can only come from knowing that assistance is on the way.

Structured Settlement Payments vs. Lump Sum Payments

Structured Settlement Payments vs. Lump Sum Payments
A structured settlement is designed to pay a person a specific amount of money spread out over a specific period of time.  It’s original intention – and current primary usage – stems from monetary payouts from a court case.  In essence, its structure allows for a person receiving it to have peace of mind that they are going to be compensated for a most likely unpleasant situation for a while.  This can help to alleviate some of the stress that may follow in the wake of such unpleasantness.
However, a structured settlement does come with a loophole of sorts, in which a person can potentially forego the structured settlement payments by selling the settlement to a secondary buyer in exchange for a lump sum.  In this instance, a person would get their money at once now instead of getting it spread out later.  While getting a lump sum payment may look like an attractive option as opposed to receiving structured settlement payments, there are a few differences between the two options that go beyond the payout time frame.
Part of the Solution
The biggest difference between structured settlement payments and lump sum payments is the overall payout that comes to a person.  If someone opts for a lump sum payment, they will not receive the full amount of their structured settlement in return.  Instead, they will only receive anywhere between 60% and 85% of the entire settlement.  While a structured settlement has several variable factors in play that may render a such a reduction a moot point, like the age of the recipient or the overall dollar amount of the settlement, knowing that this reduction exists may be enough to cause a person thinking about the lump sum option to think twice.
Rules and Regulations
The other difference between structured settlement payments and lump sum payments stem from the way a person can use the settlement money.  If a person wants to opt for a lump sum, they have to get approval from a state court in order to do so in all but six states.  Furthermore, this approval hinges upon the way that a person intends on using the lump sum money.  Under court regulations, a lump sum payment can only be used to help a person get out of a financial predicament.  Some of the approved instances in which a lump sum is acceptable include:
Payment of unpaid medical bills stemming from an unexpected emergency
Payment of credit card debt or student loans
Covering of sudden funeral costs
On the other hand, the money coming from a structured settlement do not have such restrictions, meaning that the fixed payment can be spent however the person wishes once it arrives.
With all that said, having the option of a lump sum payment can be a welcome relief for the person that finds themselves in a rough financial bind – particularly if said bind directly correlates with the incident that ended up producing the structured settlement in the first place.  Even though it may cost a person a few dollars in the long term, it may be able to buy a person the comfort that they need in the short term.