Structured Settlement

Sell My Structured Settlement Payments

Sell My Structured Settlement Payments

If you have received, or will be receiving, a structured settlement, you may not be all that pleased about the payment structure.  You may be aware that the structure is set up that way because of its courtroom origins.

But such knowledge may not make things feel any better.  This is especially the case if you have financial issues such as unpaid medical bills coming from an unexpected emergency or mounting debt from credit cards or student loans.

Fortunately, you can get relief from your financial burden by selling your structured settlement payments to a qualified secondary buyer.  Indeed, there are a large number of companies out there that are more than willing to help you complete this task, and that number seems to be growing with each passing year.  

While having choice is a good thing, it can also be an overwhelming thing, especially if you are diving into an industry where your personal knowledge is scarce.

However, selling your structured settlement payments is not as difficult as you may think, provided that you build up a basic knowledge as to how the process works.

Structured Settlement Basics

The first thing you need to know about structured settlement payments is that they are inherently designed to be broken out over a period of time for your protection.  

State law dictates that money that comes from a structured settlement be distributed in a way that prohibits you from going out and blowing all of the funds culled from a structured settlement on frivolous items. 

This law is governed by a piece of legislation called the structured settlement protection act, which is on the books of all states except the following:

  • Alabama
  • Hawaii
  • New hampshire
  • north dakota
  • Vermont
  • Wyoming

While these laws will prevent you from selling your structured settlement to a buyer so you can plan a dream trip to tahiti, the mandates do allow such transactions to occur provided that you can demonstrate proof that the funds will be used to lessen a financial burden.

Another major item that you need to be aware of is that if you sell your structured settlement, you will not be getting the full amount of your settlement in return.  Rather, you will receive anywhere between 60% and 85% of your entire structured settlement.

Finally, if you sell the structured settlement in full, you should be cognizant of the fact that all of your subsequent structured settlement payments will be nullified.  That seems like a no-brainer, but it is still worthy of noting, if only because of the long-term ramifications that are involved.

Structured Settlement: What You Need to Know?

Ultimately, the one item that you must be aware of above all of these steps is whether or not you feel comfortable with the process.  Selling your structured settlement for a lump sum is a serious financial decision with short-term relief and long-term effects.  

As such, it is important that you sit down and weigh the pros and cons involved in such a decision.  After all, it’s your money, and giving serious scrutiny to matters effecting your money is the least you can do.

How To Cash Out a Structured Settlement ?


Cashing out on a structured settlement is not necessary that everyone who has been awarded a structured settlement has to deal with. however, since there are no guarantees in life one should not automatically assume that they would never have to deal with the prospect of cashing out.

So many factors go into the decision of cashing out, and it is with these five concise steps one can figure out if they should cash out and how best to do it.

  • Step one – Research and contact a structured settlement broker and consultant
  • Step two – Gather all your documentation.
  • Step three – Review broker’s offer and sign contract.
  • Step four – Wait for court order that approvals sale.
  • Step five – Receive your cash payout.

Research And Contact a Broker

If you have received payments from a structured settlement and are tired of waiting for the payments to get to your pocket, then the first step of the process is to do your research to find the broker and consultant that serves your needs the best. 

Once you have thoroughly done your research, you should contact your broker to discuss the original structured settlement agreement. During the discussion with the broker, you should feel free to ask as many questions as you desire since a sense of comfort is important in selling a settlement.

Gather All Your Documentation

Typically after a discussion with a broker, you will receive a no obligation offer from the broker and consultant. you should not feel any pressure and take time to carefully review what the offer is and whether or not it is worth your while to take the offer. 

At the same time you are reviewing the offer and comparing it with other brokers, the brokers will be reviewing documents that you provide and then following this up with sending some important documents your way. 

Try to  receive quotes from multiple brokers so that you can compare and contrast the offers.

Sign Contracts

It is important that you carefully review the quoted offer from the broker in order to make sure it conforms to your expectations. If you agree to the terms of the agreement, mail or bring the contract back to the broker so that they can set events in motion to get money into your pocket as soon as possible.

However, you should definitely take your time and read through the offer with a fine toothcomb. Remember, ultimately the broker wants you to make a deal since they will be making money off of the deal. 

You are in the driver’s seat. take your time and don’t be afraid to even go back to them with a counteroffer and use your negotiation skills.

Wait for Court Order

Every structured settlement that is sold requires the government to get involved. The legal process has been put in place to protect you. Depending on your state or county of residence, you may be required to attend a court hearing prior to the court order being entered. 

Typically it takes from 60 – 90 days for a hearing to take place and for the judge to approve the transaction.

Receive Cash Payout

Once the court approves the transaction and the final underwriting process is completed, you finally can be awarded your cash! this often takes place within days of the court issuing the sale approval order.

Final Thoughts

Now that the process has been completed and you have received approval of the sale, the cash is yours and in your hands! you can now spend the money however you would like but it is important that you are careful with your money since now that you received a lump sum, you will no longer be receiving those monthly payments.

When You Need Cash Now: How To Sell a Structured Settlement

If cash now is exactly what you need or are looking for, you first need to see if this is the best decision for you. In this instance, you have to ask yourself what you need the money for,? and how the cash now will be beneficial to you?. 

While some individuals are able to make decisions on their own, others need the advice of settlement advisers.

Luckily there are many advisers who can give advice on what the best way is to cash in on your structured settlement. That said it is still crucial that individuals go into the process knowing that brokers and buyers of structured settlements are looking for one to cash in since it ultimately benefits them as brokers make money when you sell.

Before selling your structured settlement, it is important to go over the options that exist. There are three main options when selling for cash now. you can sell partially, entirely or receive a lump sum

Payout Options for Your Structured Settlement


If one sells a portion of annuity or structured settlement, one will continue receiving some periodic income from the remainder of the investment without losing the tax benefits. the structured settlement will continue to carry those tax benefits, and extend them to one’s beneficiaries in case one dies before collecting all payments.


Choosing to sell the entirety of one’s structured settlement for the full term of the contract means one will empty the investment at once, ending any chance of periodic income payments in the future, but one will still have a lump-sum payment to invest.


Selling lump sums over time gives one the money now in large increments, but it still guarantees one will have a steady flow of income from a structured settlement for the term of the contract, while carrying the same tax benefits as before.

There are many advantages to receiving cash now to somebody who is currently suffering through a hardship and needs to fix their financials. 

However, if you are stable and need a steady stream of income in the future then getting cash for a settlement that you received as a result of a lawsuit years go, it may not be the most intelligent decision to get cash now since you ultimately would not be getting as much money as if you did not sell.

Ultimately it is best to speak with a financial adviser and detail your current financial situation, what happened to you, and why you have these monthly and future payments coming in, since this is able to help determine the best way to approach the situation moving forward.

Be Patient

Despite the inferences and claims “cash now”, the actual process of selling a structured settlement:

  • Requires a court to approve the transaction.
  • Will also take up to 90 or more days to complete the process.
  • The final “net” amount received by a seller is far less than the “face value” of structured settlement annuity payment amounts.

While a court approves not all transactions, there is no guarantee that someone wishing to sell their structured settlement payment annuities will actually get their money now. 

As mentioned previously, the person wishing to sell structured settlement annuity payments will not get an even dollar for dollar exchange for their payments, but instead receive a deeply discounted amount of money for their structured settlement annuity payments.

Therefore it is critical for any person looking to sell their structured settlement annuity payments be as informed as possible before making any decision to sell, while realizing that the process will take some time and one will not receive the cash overnight.

How to Calculate Your Structured Settlement?


Calculating one’s structured settlement has never been easier. in an age where convenience is at the root of many people’s daily lives, it only makes sense that individuals are able to easily access a calculator that provides an accurate estimate of how much their structured settlement is worth.

With this, individuals are able to easily calculate without being bothered by competing businesses or brokers. This method is always honest and reliable, not to mention convenient.

Additionally, the structured settlement calculator is easy to use, making calculating a structured settlement payout much easier than it used to be. once an individual has an idea of his/her structured settlement’s value they can decide whether it is worth receiving the monthly payments or whether a lump sum buyout is more beneficial. 

The Structured Settlement Calculator

Is what allows an individual to know whether a lump sum buyout is more beneficial versus the structured settlement.

Structured settlement calculators can be found in numerous places on the internet, specifically on websites that cater to selling and buying structured settlements. Only a few pieces of information are required when using the calculator. this includes entering:

  • The year the payments started.
  • The year the payments are expected to end.
  • Monthly payment amounts.
  • Payment frequency.

With these four simple pieces of information, low and high range estimates can be made.

However, while the structured settlement calculator can determine value and whether a lump sum buyout is worthwhile, it is not 100 percent accurate. There are a variety of factors that can affect the value of structured settlements or annuities. 

Some of these factors include whether the payment amounts have increased over time, whether some payments have been sold, and how much of the payment is remaining.

Sell Structured Settlement Calculator


The settlement calculator calculates the rate of a structured settlement factoring transaction. The output that this settlement calculator provides is known as a discount rate and is the discounted rate that that a company will pay for ones structured settlement payment rights. 

The calculator can be used to determine the discount rate of a present value. if a company offers a lump sum of money for a future cash flow, this is known as the present value of the cash flow or payment stream. A suitable discount rate for a structured settlement is between 8-14%.

Cashing Out

Many structured settlement companies are also tying the calculators into a way to generate business as well. depending on the calculator and website, after receiving a cash payout estimate from the calculator, users are able to receive a fully reliable, no-obligation quote. A structured settlement can be cashed out partially or completely.

For example, if you only want $10k to clear your debts or invest, think of cashing out only part of your structured settlement. This will permit you to maintain a steady income, though less than before, and make financial decisions your previously were unable to.

Final Thoughts

If one is considering the sale of one’s structured settlement or annuity, in order to find out how much of a lump sum you can expect, one is going to need to know the settlement present value. 

It is your responsibility to know this since the lump sum of your settlements value is going to be worth less tomorrow than it does today and knowledge is truly power in this instance.

There is no excuse in today’s day in age since the calculators are all digital and easily accessible on numerous websites. With the structured settlement calculator, one is able to also take into consideration inflation, and how the buying power of the dollar is forever dwindling.

Structured Settlement Brokers

Since life can be unpredictable at times, one never knows when they will have a need to sue for any specific reason. To ensure that one receives the most from a particular settlement it is good to use the services of a professional structured settlement broker. 

It is best to use the services of a broker in times of need, specifically when suing for damages for a lawsuit stemming from an injury due to negligence. structured settlement brokers work particularly well in instances when both parties (both the one suing and the one being sued) want to settle the case without resorting to a jury trial.

In addition, there are several benefits to the injured party when selecting the option to hire a settlement broker, such as :

Reduction Of Legal Fees

The costs associated with hiring a settlement broker are much less than if the case had gone to trial.

Avoid The Expense And Worry Of Financial Loss 

Using a settlement broker helps provide a secure, low risk source of compensation and the convenience of regular payments tailored to fit the injured person’s specific needs. 
One of the primary reasons of using a settlement broker is that they are specifically trained in negotiating and facilitating a payout schedule for a monetary settlement that has been awarded to an individual or family as the result of a lawsuit. In short, they know how to get their client the most money possible.

Increased Income Payments

Through an assured payment stream that is fully tax-free, settlement brokers are able to negotiate a steady stream of supplemental income over a period of years, which often lasts the course of a lifetime.
For example, the injured person may receive more compensation over time than a lump sum settlement provides. through the use of a broker, the injured person also has the ability to receive payments for his or her entire life and avoid the possibility of outliving a lump sum award.

When deciding to sue, selecting a structured settlement broker makes the most sense, especially since typically the individual suing already has enough stress from their injuries and impairments that selecting a broker is sure to help alleviate stress. 

Not only are structured settlement brokers the experts, but they are one of the rarest breeds of legal professionals out there.

Elite Class

Structured settlement brokers belong to an elite class of professionals. In fact, there are only a few hundred qualified structured settlement brokers in the united states that are registered with the department of justice. part of the reason for this is because it is difficult for one to become a broker.

The broker must be licensed or authorized to perform his or her duties on behalf of at least one insurance company, and must be insured by an errors and omissions policy or its equivalent. it should also be noted that an individual who has had a felony conviction or a license as an insurance agent or broker revoked is not eligible for consideration.

Finding the Right Broker


A qualified, structured settlement broker can help anyone who is interested in selling their cash award settlement in return for one, lump sum.

For individuals who have won large judgments as a result of negligence or malpractice, it can sometimes be difficult to know just how to handle all that money, which is why selecting a structured settlement broker is needed. 

While these types of brokers are not a dime a dozen, selecting the right broker takes some research. Brokers who have been in the business for a long time have track records, not to mention reputations.

So it is important that one asks for credentials or references and some past cases to review. Additionally, a good structured settlement buyer will be listed in good standing with the better business bureau (bbb) so that is always a great resource as well.

The Pros and Cons of  Selling Structured Settlement for Cash Now

Money makes the world go-round and also is what allows you to stay afloat. If you have a structured settlement payment plan set up and do want to cash out for some extra cash, there are options out there.

Specifically, the benefit of periodic payments is the guarantee of an ongoing income, which allows the individual to spend the money wisely and avoid splashing out on unnecessary purchases. Before making any quick decisions, it is vital that one considers the following:

  • Consider the losses.
  • Search around.
  • Take your time.
  • Sell no more than what you need.

Obtaining cash for structured settlement payments can definitely be a tempting option for many who want to get their hands on the money quickly. However, it is not always the best option. Before making this decision, a few key points should be taken in to consideration.

Consider the Losses

The first step in the process is for one to figure out the loss that will be made after taking cash for the structured settlement. Structured settlements are generally tax-free.

But upon taking a lump sum one is required to pay state and federal taxes that has the potential to significantly reduce the amount that one would receive as part of the structured settlement. 

Furthermore, when selling ones settlement, the company’s aim is to make as much money as possible –So remember that you will be underpaid. cashing out may equal quick money, but it will be far less than its real value.

Search Around

The biggest mistake that many people make when looking to sell a structured settlement is that they settle with the first buyer or company that one comes across without shopping around. 

It is important that one does thorough research before selecting the buyer. when it comes to ones assets, you should certainly not entrust them to everyone. Since it is your money, you should really take your time to find an established and reputable company. 

There are so many resources that exist when doing your research – From the better business bureau to the attorney general’s office. The main thing to remember is that one should never rush into a sale without doing the proper research.

Take Your Time

The next step in the process is to take your time. It may sound a little obvious, but do not  accept the first buyer’s offer without doing careful research. Failing to do some thorough research could result in a serious loss of money. 

You would not trust a stranger with your wallet, so then make sure that you carefully trust the individual who will be helping you get cash for your structured settlement. 

Take multiple meetings, read reviews and even contact those who have cashed in with the particular buyer or company that you are considering.

Sell No More Than Needed

In many cases, structured settlements encompass a rather large amount of money, so that after one handles all of their financial necessities, one may still have to deal with a big sum of money along with the strong temptation to spend it right away. 

This is definitely a great responsibility, as money should be used and invested wisely. otherwise, you may quickly end up with no money left.

Therefore, it is important that one analyzes thoroughly one’s financial state. If you decide that you only need a small amount of money to satisfy your immediate cash needs, then opting for a partial cash payout option is an obvious choice. 

In this way, one will have both advantages: Obtaining cash now and still keep receiving a steady monthly income in the future.


To sum up, keep in mind that selling your structured settlement for a lump sum of cash is not the decision to be made in a hurry. Take your time to explore thoroughly the modern asset-backed market, check leading funding companies, compare their terms and services and, of course, consider over your current financial case to determine your exact cash needs.

Why is Getting Cash from a Structured Settlement so Difficult?


If you have received a structured settlement, chances are you have done so because you have faced unpleasant circumstances, such as an injury that was not your fault.  

While its design of providing you with a steady monthly payment over a fixed period of time may seem like an amicable enough solution, you may feel the desire to claim it all at once in order to pay for medical bills, mounting debt, and other financial issues that may have cropped up.

Seeing as how it is not that difficult to locate a structured settlement buyer online, the concept of receiving cash in exchange for your structured settlement is one that is quite popular. 

However, if you have looked into the process of obtaining the service of a structured settlement buyer, you may have noticed that it is a somewhat complex process.  Naturally, you may wonder why this is the case

Being Protective

The reason that getting a deal with a structured settlement buyer is difficult can be summed up in one word:  protection – Specifically, the protection of your best interests.  

Unlike an annuity, which allows for similar cash out options in lieu of a future fixed payment option, a structured settlement has its roots in the court, and the monies involved are typically representative of a cash settlement that is derived from a court case.

Because of this, a state-level law known as the structured settlement protection act has been placed on the books.  In essence, this law dictates that any transaction done between a person and a structured settlement buyer be approved by a state court.  the law is in effect in all but the following states:

  • Alabama
  • Hawaii
  • New hampshire
  • North dakota
  • Vermont
  • Wyoming

Furthermore, the state court has the right to reject a transaction if it deems that the person is planning on using the monies for frivolous means.  Again, this stems from the notion that the money that was awarded to a person in a structured settlement situation was done so in the wake of a litigious situation. 

By this rationale, the awarded settlement should only be paid in a non-structured format in the event of an emergency.  What this typically means is, the person requesting the transaction with the structured settlement buyer must provide supporting information that demonstrates the money will be used in an acceptable manner.

Different Rules for Long-Term Structure

It should be noted that the rules pertaining to the court approval and monetary usage are only in effect if you wish to work with a structured settlement buyer to receive cash immediately.  

If you wait to receive your structured settlement based on the parameters of the designated payout, you are free to spend the money in any manner you choose. 

That said, if you do have a financial emergency crop up and you need assistance in getting over that hump, exploring your options with a structured settlement buyer may be something that is relevant to your interests, even with the hoops to jump through.