Selling Structured Settlement Payments

Selling structured settlement payment rights can be a tricky subject matter for many reasons. A structured settlement is a financial/insurance vehicle that a claimant accepts to settle a personal injury settlement. Here is an example:

Susan is involved in a car accident where she is permanently injured. The two parties agree on a settlement and decide to use a structured settlement as opposed to a lump sum settlement. At this point an annuity is purchased to fund the structured settlement. Susan now receives monthly payments of $3,000 per month for a guaranteed period of 30 years and life there after.

Occasionally an individual who has a structured settlement may run into a situation where they need a large amount of cash now and decides to cash out a portion of their structured settlement. This is where selling a structured settlement becomes a reality for these individuals.

Selling a structured settlement isn't as easy as just receiving an offer, accepting, and receiving your money. State statutes stipulate that a court order needs to be issued by a judge in order to sell the rights to your structured settlement. This can be completed by a reputable structured settlement factoring company.

Most structured settlement factoring companies have completed many transactions and will know the statute in the state that you reside in and should have no issues completing your transaction.

Within the next few posts we will outline how these transactions are priced, the process that it takes to complete the transaction, and things you should be aware of when selling the rights to your future structured settlement or annuity payments.

Please stay tuned.