There are a few factors to consider before selling your Structured Settlement:
● You must have a clear understanding of the process of selling your structured settlement or annuity.
● You must know your role during the sale and the define the desired type of settlement payout , along with its requirements.
● You must make careful decisions based on your financial situation.
The process of selling a structured settlement takes 30-90 days depending on the lump sum payment and where you reside — every state has its own waiting period and unique laws regarding the sale of structured settlements.
The process of selling your structured settlement is not difficult, however, there are required steps one must follow to begin this process:
● One must contact a structured settlement buying company for a free quote. A representative will ask the for details about the settlement or annuity, including the company that is providing the payment, the payment frequency, and the payment amount.
● The company will then analyze your case, and then send an offer to buy out the settlement or annuity that will include the discount rate and the amount of cash you will receive.
● Once there is an agreement, one must accept and sign the offer.
● Once the offer is signed, the sale is then reviewed and approved by a judge. Attendance at this reviewal depends on the court and is determined on an individual basis.
● The judge will then sign the approval and grant approval for the transaction. The order is sent over to your settlement issuer to wire funds.
Understand Your Role
Throughout the entire process, there will be a representative to provide you with guidance. This representative can answer any questions you have and provide assistance with any paperwork one may need to complete. Noted below are the documents your representative will need in order to collect essential information about your structured settlement or annuity:
● Two photo IDs for verification
● Social Security card or birth certificate
● Driver’s license or passport
● Non-photo ID
● Completed application (provided by your representative)
● A copy of your Annuity Policy and the original Settlement and Release Agreements.
The seller and the representative should prepare by collecting all the necessary documents and paperwork obtained from the original settlement.
Decisions Before Selling
In most cases, one's purpose for selling his or her structured settlment or annuity is a sudden huge expense (e.g. medical expenses, paying off debt, unexpected moving expenses, vacation costs, identify theft, educational expenses etc) and the lump sum payment may be considered the only option to cover one of the aforementioned expenses. On the other hand, some settlement recipients sell for personal reasons, such as purchasing a home, buying a car and even starting a business.
Questions to consider:
● Do I understand the transfer agreement?
● Do I understand that selling my payments may mean receiving a lump sum less than the total amount of future structured settlement cash?
● Do I really need the lump sum payment?
● Am I fully prepared and comfortable with the deal?
● Did I contact the right structured settlement purchasing company?
● Did I have the opportunity to review this transfer with a financial adviser, who is not related to the structured settlement buying company?
Once the arrangement has been legitimized, funds are then delivered within 3 - 5 business days. Take note, the more you are prepared for the settlement, the faster the process as the representative of the structured settlement buying company will inform you about the timeline of your specific structured settlement or annuity sale process.
For more information, you can contact Protect Your Settlements at (888) 537-9094.