Based on a recent article in the secondary market for structured settlements, you already know that selling your future payments for immediate cash is perfectly legal. But knowing that you can sell your future payments to a third party does not mean you must. You should first ask yourself, am I ready to part with my future payments? If you are not prepared to face the emotional and financial stress associated with lump sum payout, then selling your structured payments is not the wisest option for you. There are other ways to accomplish your desired financial goal, including the use of an escrow company or making use of an annuity calculator.
Escrow companies have their own fee structure and may offer you a better deal than if you played the lottery. For those who have no experience in buying annuities or are unfamiliar with discount rates, the best way to learn the ropes is to consult with a reputable broker or insurance agent. They will be able to explain the ins and outs of purchasing a structured settlement and the process of selling it to a third party. While you may not have all of the necessary knowledge to approach such a transaction, their experience will put you at an advantage. A broker or insurance agent will also be able to answer any questions that you may have about the process of selling your structured settlements.
When you sell future structured settlement payments, one of the most important things to remember is there is no set amount of time within which you must sell your payment. The decision to sell comes completely upon you. Some individuals choose to wait a certain period of time before selling their future payments. This allows them to gain more financially-experienced and financially knowledgeable before deciding to part with their cash. However, many individuals do not wait this long before deciding to part with their cash. Knowing when you should sell Structured Settlement payments is important because you never know when you might need cash in the future.
Once you determine that you want to sell structured settlement payments, the next step is to find a company that you wish to work with. The easiest way to make this determination is to speak to a licensed broker or insurance agent who is familiar with the buying and selling of annuities. If you choose to work directly with a commercial annuity company, it is important to understand what their terms are before signing on the dotted line. For example, a commercial annuity company may require a high commission, lump sum purchase price, or both. You may also want to consider the reputation of a particular company before purchasing your annuity contract.
Step two involves working with a qualified broker or insurance agent. During your initial consultation, the broker or insurance agent should interview you to get information regarding your current financial situation and any other questions that you may have. After the interview, the individual should be able to provide you with a number of ideas for how you can best obtain the lump sum of money that you are looking for. One of the best ways to do this is through a structured annuity buyer. This will allow you to sell your payments for one lump sum payment today instead of having to pay out over time. A qualified broker or insurance agent will be able to guide you through the process of finding a suitable commercial annuity buyer.
Once you have found a buyer, the second step involves deciding whether or not you want cash now or to have your annuity continue to exist over the course of several years. Most people agree that the lump sum money is more important than paying out monthly premiums on an annuity. If you choose to go with the cash option, there are some things you need to know including what the tax consequences are. Structured Settlement payments that are surrender charges will result in a higher tax burden. If you decide to surrender charges, it is important to note that you will forfeit any interest that you paid on your annuity and any penalties that the insurance company has.