Based on recent news about the secondary cash market for structured settlements, you already know that transferring your structured settlements to another party is perfectly legal. But understanding why you should sell your future payments to a company that can buy them for a fraction of their value doesn’t mean that you do. Structured settlement payments are actually held by individual companies in different interest amounts, with different terms and conditions attached to them. How these companies make their profit, and what they can legally offer you, may surprise you. In this article I will discuss how companies make money from structured settlements and what it means to sell a future payment to one of them.
Most of the time you as a recipient are not aware that there are companies out there that will buy structured settlements for a fraction of their face value. They may charge you a fee to process the transfer the payments to your accounts, but don’t be afraid to let them know that you want to sell structured settlement payments to get money now instead of later. The factoring companies will still give you the money but they will do so at a discount that will be less than the value of your future payments.
You can do this by contacting the factoring company directly and asking them if they would be willing to buy your future payments for a discount rate of less than 60,000 and less than 50,000 per annum. What you may not realize is that factoring companies actually service thousands of clients a year, and the discount rates they offer to those individuals are a great opportunity for you to make a profit on your future payments. The discount rate they will charge you depends on their overall volume of business. If they are processing thousands of monthly payments for their customers, they will generally offer you a lower rate. If they are processing fewer payments per month, but their volume of business has increased, then they will offer you a slightly higher rate.
You will also need to know the value of your payments. Once you sell your future annuity payments, you will need to determine the value of your payments. This can be done by either selling the full amount to a buyer, or just part of your payments. You can sell either the full amount or just part of your future payments by contacting a buyer for your payments. Buying your payments from a buyer will allow you to receive the full amount you are owed in a lump sum, instead of having to pay out each individual payment over time.
Be sure to thoroughly research all aspects of selling your settlement payments before you hire a professional buyer for your payments. There are several things to keep in mind. You need to find out what the current transfer laws are for your state. You should find out the minimum amount of coverage your insurance company requires for annuity payments. You should contact the servicing company and ask them if they can provide you with any information regarding their transfer policies. It is best to keep in mind that if the company’s transfer policies are too lenient, they could leave you hanging after you have already paid them.
Once you have found a good buying company and have settled on the price, then you will need to write a contract. Make sure you read it carefully so that there are no problems with it. It is important to understand the steps listed above in order to get the most out of your settlement. Selling annuity payments can be helpful if you are not able to get cash flow on your current plan.