Don’t Even Think About Selling a Structured Settlement Before Reading This


If you own a fixed annuity and receive small payments monthly or bi-annually, the thought has probably crossed your mind to sell it and get lumpsum cash for your settlement. The small, regular payments are nice padding to your budget, but the decision to sell fixed annuity settlements sometimes makes sense when you need a large amount of money now.

Reasons Why Annuity Owners Make the Decision to Sell Fixed Annuity Plans
Every annuity owner’s financial situation is unique, but some reasons why selling a fixed annuity is a responsible choice include:

  • Getting out of debt. Sometimes an annuity owner is so far in debt that all of their income goes to their minimum payments, or worse, they’re facing bankruptcy. In these cases, the decision to sell fixed annuity plans make sense. If you file bankruptcy, you will lose any assets you have– including your fixed annuity payments, and your home and car. On the other hand, if you sell fixed annuity settlements to get yourself out of the hole of debt, you can keep your home and car with minimal interruption to your life.
  • Investing in the future. Sometimes, selling a structured settlement gives you the money you need to start a business or to put yourself through college. Doing this might enable you to have a career and salary far greater than you get from your structured settlement payments.
  • Making the money work for you. Depending on the percent of interest that your structured settlement grows at, you may find a high-yield investment will pay you a lot more than your structured settlement gets.

Tips for Getting the Most Money Selling a Structured Settlement
A few ways to make sure your fixed annuity sale is a good idea include:

  • Shop around. Companies who purchase structured settlements make a broad range of offers. Make contact with at least three companies before choosing the one that gives you the best offer. Make sure their offers include any additional fees And surrender charges that you’ll be subject to, so that you can make an apples-to-apples comparison between offers. It is also a good idea to get referrals for reputable settlement purchasing companies from a lawyer who commonly works with them and knows which you should avoid.
  • Take your time. Your structured settlement is probably worth a large amount of money. You want to be careful in each step of the process. Give yourself time to read through all of the fine print in both your structured settlement and the purchasing offer, so that there are no surprises. It does not hurt to work with the lawyer or a financial advisor before committing to a sale.
  • Book a court date. There are laws that regulate selling structured settlements in 46 states. These regulations are in place to protect your financial security. After closely reviewing your settlement and talking with the lawyer, you will want to go before the judge and explain why you have chosen to sell your structured settlement. This is usually a required step, but even if it is not, it is a good idea. The judge will help ensure that the deal that you’re getting is a fair market offer.

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