Steps for Obtaining Cash for Structured Settlement

Obtaining cash for structured settlement annuities is a complex matter. While this option can be appealing to those in need of lump sum cash, it may not be the best financial solution. Selling future annuity payments is prohibited in many states, so Annuitants must first determine if their state of residence allows the sale.

To obtain cash for structured settlement payments, Annuitants must find a reputable funding source. These might include private investors, investment groups, annuity brokers, or cash advance companies. The key to success is wisely choosing the funding source.

Structured Settlements

Take time to thoroughly investigate anyone claiming to buy annuity payments. Use the Internet to obtain background information, company reviews and testimonials. Arrange a meeting and ask plenty of questions.

When Annuitants sell annuity payments they assign payment rights to the funding source. Annuitants can elect to sell settlements in whole or part. The majority of states which allow the sale of future annuity payments require Annuitants to obtain court authorization. Courts rarely allow Annuitants to sell their entire settlement.

Structured settlements are used to provide monetary awards to individuals who have been seriously injured. They are also used to payout jackpot lottery winnings. Annuitants who receive payments as injury compensation typically require funds to pay ongoing medical expenses or to ensure their standard of living remains the same as before they sustained injury. In order to sell structured settlement payments Annuitants must provide compelling evidence as to how the sale will enhance their life.

In addition to obtaining court authorization, Annuitants must also obtain approval from the life insurance company which guarantees future payments. Most companies frown on this type of transaction because it requires specific documents to be filed along with monitoring payment schedules.

It is recommended to work with a structured settlement attorney who can submit required documents, plead the case in court, and obtain authorization from life insurance companies. Lawyers who specialize in this field may also be able to refer professional annuity brokers who can help clients obtain the best price. Funding sources charge fees when providing cash for structured settlements. Annuitants rarely receive full face value due to market fluctuations.

Annuitants should be prepared to provide specific information regarding their settlement to the funding source. Most require contact information for the life insurance company which guarantees annuity payments, along with dates and payment amounts of future annuities.

Annuitants should also determine the exact amount of funds required. People often want cash for structured settlement annuities to payoff outstanding debts, medical expenses, or education costs, as well as for starting or expanding a business. Others require funds for investment purposes.

A proposal is submitted to funding sources who review the structured settlement to determine current market value. An offer is presented and if the Annuitant accepts, a contract is executed. The contract is submitted to court for approval. After receiving court approval, funding sources complete the transaction and transfer funds to Annuitants.

The average timeframe for completion is between 6 and 8 weeks. Annuitants should fully understand the risks and fees associated with selling structured settlements prior to signing contracts.

Steps for Obtaining Cash for Structured Settlement