How to Sell Structured Settlement Payments

Sell Structured Settlement payments

How to Sell Structured Settlement Payments

When someone gets out of a long-term injury lawsuit, they often have to sell off any future annuities. The reason is that the payments are calculated on a monthly rate. However, selling these payments for current value might be better for some people. How can you know if this type of sale is right for you? Consider the following:

– A lump sum payment is easier to handle for many people. Typically, if an individual received a structured settlement at full value in 2021 with regular monthly income, he or she may be able to receive up to twice that amount in cash from a financial institution. However, selling these payments for present value makes more sense. Basically, the financial institution receives a lump sum equal to what the total annuity is worth today. This lump sum should be less than the present value of what the annuity is worth in the future.

– People who sell structured settlement payments may need immediate access to their money. If they are injured in an accident, they may need medical care that will cost thousands of dollars right away. If they are also having trouble paying their mortgage, future payments may need to be cut out because they cannot afford the payments.

– People who sell structured settlement annuities for future payments need a steady income. This could come in the form of a larger salary or a bonus check from their company. Annuities are not tax-free. However, the federal government and other institutions offer tax deferment on most annuities, which means that the payments remain tax-free until such time as they are earned.

– When you decide to sell structured settlement payments, you want to make sure that you find a reputable buyer. You can do this by seeking advice from a lawyer or agent. You should also check the background of any factoring companies you are considering. You should check to see if they have been rated by a watchdog group.

– People who sell structured settlement payments should also make sure that they never sign or agree to anything before consulting with their lawyers. You never know what kind of information a person is trying to hide. Another thing to consider when you sell your payments is that you should never give a loan to a factoring company. The terms may seem good and possible but the factoring companies often charge very high interest rates.