Sell Structured Settlement Payments

Based on recent news about the secondary structured market for structured settlements, you already know that selling your structured settlements is perfectly legal. But understanding why you are able to sell your future payments for a lump sum payment instead of a monthly annuity payment means you really shouldn’t. There’s a good reason why some portion of your future settlement was set aside in a prepaid structured settlement in the first place. The bulk of the money is tax-free (which is also why it’s called “tax-deferred”) which allows future payments to be used as needed. That’s how the bulk of structured settlements are set up.

Now, when you get ready to sell, you need to make sure you are getting the most for your settlement payments. The market value for settlement payments is based on several things, including the present value and what your insurance company is willing to buy it for at present. In short, you want to make sure you are getting the most for the settlement before considering an offer price. Present value is defined as the current sales price divided by the present time of the sale.

Your discount rate is important here too. The higher your discount rate, the better the offer will be for you. You can ask your broker for guidance as to what the current discount rates are and what the best possible rate would be for your specific type of structured settlement. Just make sure you are getting a good idea of the present value before making any decision. Using a broker to sell structured settlement payments is one of the easiest ways to accomplish this.

When you sell structured settlement payments, there are a few options available to you. One option is for the transfer company to transfer the payments to a lender to fulfill your future structured settlement payments. This would be done by negotiating directly with your lender and receiving written confirmation that they will transfer the payments to the transfer company. This is often the best option, since you have full control over future payments, and since the transfer company can often negotiate a much better deal for you than you would do on your own.

If you do not have enough of a lump sum to meet your needs, another option is to issue incremental payments. These are also known as annuities. Annuity payments are made on a regular schedule, usually monthly. They are based on your current or future settlement value, and can help you meet expenses and provide some cushion for emergencies. When you sell structured settlements, you can decide which plan is the best one for your particular situation.

You will want to talk to a financial professional to discuss what your options are if you need cash now more than ever. Remember, the lump sum payment you receive from a sell and transfer plan will be taxable as income. However, it will be less than the total payments you would receive had you not used a structured settlement factoring company. Structured settlements are a great way to protect your long term financial interests, but you should always consult a financial expert before proceeding. With the right help, you can sell structured settlement future payment and gain immediate relief.