Before you decide to begin a search for companies that buy structured settlements you should consider what is involved in the process. Often, insurance companies offer a structured settlement rather than an immediate pay out of cash. Under a structured insurance settlement, the insurer promises to pay money in regular installments over a period of time. Typically selling your future structured settlement payments will require a legal process.
The insurance company is ordered by a court to pay you or your family over a period of time. Insurance companies typically fund these awards by purchasing annuities. The annuity therefore belongs to that insurance company and not to you, meaning you cannot sell the annuity. You can however sell the rights to receive future payments You can sell this asset on terms that you negotiate with a third-party buyer, or companies that buy structured settlements.
In most cases selling a settlement will require a court review. Simply put a court ordered the payments and therefore a court will have to rule in favor of selling future payments.
The court's legal review examines the person's financial circumstances, and the arguments in favor of selling future annuity payments. You would have to show that your interests would be better served by an immediate lump sum of cash, compared to the inflexible terms of the existing annuity.
The process will seem impossible throughout and it is advised to find a settlement specialist to help through the process. There are benefits to a lump sum payout and there are advantages to extended payments. The individual should decided what is the best approach to take. Laws may vary state by state so proper research is needed before you make a hasty decision.
Life can throw unexpected surprises at you everyday and your needs may have changed since you were awarded the settlement. The court generally had your best interest in mind when the award was made. You would do well to consider all factors before proceeding with your settlement sale
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