How to Best Sell a Structured Settlements Annuity

I6t is not a difficult or an arduous process to sell your annuity or structured settlement. However pone has to appear before a judge for approval of selling it.

Process of Selling the structured Settlements:-

The process of selling one’s structured settlement is relatively simple. However the question before making the sale is to ask one’s self is that is it a viable option to sell their structured settlements or not?

If you are sure about making the sale, the free quotes for your structured settlements can be made within few minutes. After that it normally takes maximum of 90 days to have either cash deposited in your bank account or having a cashier check.

The usual process for selling one’s structured settlements is classified into six following steps.


  • Make contac6t with structured settlement buying companies. These companies will give you best quote for your structured settlements within few minutes.
  • Gather different quotes from different buyers. Evaluate and compare each of the quotes and only then accept the best offer.
  • Ask the buyer for a cash advance. This way you will have something to live on until your court date arrives.
  • See the judge when the court date arrives. Judge will review over your case.
  • After approval from the judge, send the copy of that approved order to your insurance company for transaction purposes.
  • In the end you will receive the payment within 90 days.

Asking yourself tough questions:-

Before making the sale of your structured settlement, sit down with your attorney or accountant to help review your whole settlement. It is the time for asking yourself the following tough questions.

  • Do I need the cash right now?
  • The reason for selling the annuity is real?
  • Are you selling it for a want or a need basis?
  • Is it the final and best way to raise money for your cause?
  • Will this anyway put your future financial security at risk?
  • What is the best sale type in this case? Full, partial or reverse?

These are only few of the most important questions that you have to ask yourself and answer to yourself truthfully as well. The answers that are viable for selling your structured settlements for the following causes are only viable.

  • Buying new home
  • Expecting new baby
  • Investing in your o kid’s education plan
  • Venturing into a new business
  • Clearing off debts

Get free quotes without any prior obligations:-

Once you have made the decision of selling your annuity payments, then the next step is to shop around for free quotes. Keep in mind that you are looking for a best offer and for that you have to get quotes from multiple buyers.

Do research and choose the most trustworthy buyers in the market. A company with good reputation will give the best service as well as best deal of your structured settlements.

You can also ask from your lawyer or accountants to recommend best potential buyers. Only go for those buyers that have repute and a good track record.

There are laws and regulations placed by federal and state governments for the transfer procedure. These laws are placed to preserve your rights. Take this for example. Companies are obligated to give you in writing the following details regarding the sale of structured settlements.

  • Number of months, seller is selling of their settlement
  • Amount of ,money that seller will receive
  • Difference in between value of a maintained structured settlement from the value at which it is to be sold

Always get everything in writing:-

Always be vigilant to keep everything in the transaction process to be in writing. When you are using the money received from selling the settlement you will have to provide for the following paperwork.

  • Verified documents of annuity
  • Settlement contract of the insurance company that issued you your structured settlement

In addition to this you will also be convincing the buyer that you are selling the annuity on your own behalf and are willing to do son discounted rate. Less discount rate equals more benefit for seller and more discount rate means more benefit for buyer.

Companies usually have a fixed discount rate percentage and they mostly abide by it. It is usually 12 percent.

After agreeing to cash offer made by buyer, they will send you documents for signing and notary purposes. Sooner you complete the task, sooner the court process will start.

Get cash advance while waiting for a court date:-

After sending in the signed documents, either our hired attorney or the one provided by the factoring company will submit your documents to local court for a hearing date. The hearing date usually comes in between 60 days, if all the documentation is right.

This 60 days period can be of little to some but the one who is in dire need of cash can ask for their attorney to ask the factoring company for a cash advance.

Few other elements are also in play while selling the structured settlements. Each of these elements are dependent upon the State you are currently living in. common examples include the following.

  • Some states require the seller to make assessments for selling the annuity from a “Third Non Partial Party”.
  • Some States have placed a cooling period. This means the time in which seller can change their mind to sell the annuity.

Before selling the structured settlement, be sure to ask your attorney or accountant about any special laws or regulations of the state.

Court Date:-

After receiving the court date for the annuity sale, you will be standing in front of the judge along with your attorney. A cautionary tip, be ready to explain the cause of selling your structured settlement to the judge. The cause should be well enough to convince the judge that it will not place your family in any financial future insecurity.

Along with your explained cause, judge will take the following factors into consideration before approving the sale.

  • Reputation of the buying company
  • Discount rate
  • Seller’s employment status
  • Any prior transaction of the annuity

After the court approves the process, it will issue the seller a transfer order of acknowledgement. In the end after a full 90 days process, your buyer will send you the lump sum amount of your structured settlement.


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