The process of selling structured settlement payments involves reassigning your rights to future payments to your chose buyer. After the sale is completed, the buyer provides you a lump sum while the insurance company sends payments to the buyer instead of to you. Those who wish to sell settlement payments have the option to sell all or just a portion of future payments.
Do Not Sell Everything
Financial experts recommend selling only a portion of structured settlement payments because investors purchase annuity payments at an amount lower than the value of the settlement. For example, if you were to sell structured settlement payments valued at $100,000; you will only receive something like $65,000. Furthermore, you would lose accrued interest on future payments. Unless there is a dire emergency that requires you to sell settlement payments in their entirety, it’s best to hold on to a portion of them.
Things You Need to Do First
Before selling structured settlement payments you will need to:
• Establish how much money you need
• Gather the details of your structured settlement including contact information for the insurance company who provides the payments, the payment amounts, and the dates you will receive them
• Look up prospective structured settlement investors or investment companies
• Obtain court approval to sell structured settlement payments.
Once you find a buyer for your structured settlement, certain papers have to be filed with the court. A judge must review your case to determine if selling your structured settlement is in your best interest.
Why People Sell
Many people choose to sell structured settlement payments in order to pay off debts such as their mortgage or medical bills. Others may want money to invest in real estate, stocks, bonds or other opportunities.
Choosing a Buyer
When looking for a financial company or private investor to purchase your annuity payments, it’s important to thoroughly investigate them prior to signing any documents. Never forget that it’s your money and you do not want to lose it to dishonest people.
Always check with the Better Business Bureau and ask for references. Then follow-up with those references and ask in-depth questions. Never forget to exercise caution when working with individuals who offer to pay you cash in exchange for the selling future structured settlement payments.
