How To Sell Your Structured Settlement Without Getting Ripped Off

When you have a need for cash, you may be tempted to sell your structured settlement payments. While this is a potential option when you’re faced with a cash crunch, it is usually not the best. It’s no surprise that many financial advisers don’t recommend it. Selling may be the only option in your situation. Moreover it is your right to sell if you so wish. If you feel it is time to get your structured settlement cash, here is a breakdown of the process:

  1. Find a settlement buyer: First step is to shop your structured settlement to several companies to increase your chances of clinching a good deal. You will receive several quotes from which you will choose one. Note that sometimes the amount listed on the quote is not actually what ends up on your check. Be sure to have all fees involved in writing.
  2. Choose offer: Once you’ve compared all quotes, choose one that best meets your needs. Ensure that the buyer you’ve chosen is a reputable company. At this point you will need to provide the company with your settlement agreement, benefit’s letter or annuity policy for verification of payments.
  3. Signing documents: You will then receive documents to sign from the buyer, usually through courier or a notary service. Some states require independent professional advice at this stage before proceeding. This involves the services of an attorney or other competent representative to offer independent advice on whether the offer is in your best interests. In addition, there’s usually a cooling off period of 3 to 10 days where you can cancel the transaction. The buyer cannot proceed until the cooling off period is done.
  4. Document processing: At this point the buyer needs to verify the payments and that you have a right to sell. They do this by requesting and obtaining a benefit’s letter from the insurance company.
  5. Local attorney: Once your payment stream is verified by the buyer, they will hire an attorney in your state to file the documents in your local court. A reputable buyer typically pays for these costs but some less credible companies may take these fees out of your final pay out. To guard against such, have all legal fees involved clearly spelled out in the contract.
  6. Court date: A hearing date will be scheduled and confirmed via Certified Mail. This takes between 3 and 5 weeks.
  7. Court hearing: You will then face a judge who will determine that the transaction is in your best interests. If all is well, the judge will approve the transaction.
  8. Acknowledgment: The signed order is now sent to the insurance company to confirm that the payments are being transfered. Once acknowledgement is complete, the buyer wires the cash to you.

Process Of Selling Structured Settlement

This process is more or less the same in every state but specifics may differ a bit.

Best Structured Settlement Companies

Structured settlements have sprung up a secondary market where beneficiaries of settlements can sell all or a part of their payments to a buyer, usually called a structured settlement funding company. The beneficiary receives a lump sum in return. Here is a selection of top rated settlement companies:

  • J.G Wentworth: In business for more than two decades, J.G Wentworth is one of the top structured settlement companies with a solid reputation. The company buys future payment streams and offers best price guarantee along with personalized transactions to fit each customer’s needs.
  • Peachtree Financial Solutions: Peachtree is another reputable name in the structured settlements arena. Peachtree handles the sale of their clients’ annuity promptly. Each client is assigned a special assistant that courteously handles their transaction from start to finish. Peachtree is especially popular for its highly personalized service.
  • SenecaOne: If you are an annuity beneficiary and are looking for a quick doze of cash from your settlement, SenecaOne is the company for you. The company gives you access to $5000 in a mere 24 hours, which can be pretty handy if you are in dire need of cash. Payment plans are customized to client’s needs, giving clients control over how much or how little they want to sell.

What Is A Structured Settlement Agreement?

While you may have heard the term structured settlement, not many people understand the ends and outs of this financial tool. The term is typically shrouded in a lot of legalese, which makes it seem complicated.  However, structured settlements are pretty simple if you know the basics involved. In this post we’re going to discuss the key points you need to know about structured settlements, issuers, and the process of selling structured settlements.

A structured settlement is a negotiated financial settlement that is paid out to a plaintiff over the course of many years rather than as a cash lump sum. It is typically used in cases where the plaintiff has suffered a serious (sometimes permanent) personal injury. The defendant’s insurer pays the money towards the plaintiff’s annuity policy. With an annuity, there’s a regular stream of income that spans the term of the structured settlement. Annuity contracts contain all details of the series of payments that the plaintiff will receive. These contracts cover a variety of expected expenses and can be pretty complex.

Before reaching any structured settlement agreement, it is important to weigh all your options with a competent certified public accountant, personal injury attorney, or tax attorney. With structured settlements, many civil cases involving personal injury claims never make it to court. In this case the plaintiff needs to put an end to all legal action henceforce.

A structured settlement may be issued by a court ruling after a judge determines that the plaintiff is owed money as a result of injury or lost income through the fault of the defendant. Typical cases that attract structured settlements include personal injury, wrongful death, and workers’ compensation. All these cases involve some kind of financial compensation due to lost income or injury. Once an agreement is reached, the settlement is conducted through a neutral third party that is neither attached to the plaintiff nor the defendant.

Wrapping up

Over the past three decades, structured settlement have provided the most favorable way to settle personal injury and wrongful death claims. They provide solid financial security in the wake of accidents or other tragedy. If you’re asking yourself “can I sell my structured settlement?” In short, yes, you have the right to sell your future settlement payments in case your needs change.