The Comprehensive Guide Introduction to Structured Settlements

annuityThese are financial instruments or commitments that are always used to finance such issues as personal injury compensation. In this regard, the payments are made to a person over a long period of time.

The associated benefit with this agreement is that a person gets a much higher amount in total by the end of the span of time agreed upon as compared to getting a lump sum. This is because interest rates are taken care of in the process. In this case too, a person under a structured payment has some kind of ‘security’ that is recognized; the same way real property is recognized, by the financial institutions. The objective of this comprehensive guide therefore is to get you through the whole process of selling your structured settlement.

How do I sell My Structured Settlement?

An easy enough guide for anyone to follow who is looking to selling annuity payments!

  • Fist of all, make a decision to sell. This has to do with the reason behind your actual being on the verge of making the sale. Having a good look at other available options rather than going with the loss associated with making a sale of your structured settlements is very important as such. You should see which is better between the loss you incur for making this sale and the loss that will be incurred by failure to satisfy the need at hand. After considering all those factors, you may comfortably proceed to the next step.
  • Shop around effectively enough. It will call for a dedicated research on the current market up to certainty that you have looked at all the companies starting from their terms and conditions to the question of legality of their operation too.
  • Choose the best company of the bunch. The above step will require a thorough check on all the available companies ready to buy the structured settlement. Thereafter, going with one that has the simplest terms and also the one that legally operates in your area of application is necessary. There must also be a way to prove the length the company has been operational as this will give a risk-free way to make the sale.
  • Get legal approval. Gaining legal approval is required to be able to sell a structured settlement. This is the step you also seek advisory information from your lawyer. This is the only way that you will get the payment.
  • Collect the cash.

Taxes and Discounts

The regulations that apply to selling structured settlement payments are the same regulations that apply to the annuities you have been receiving. What stands as per the rules and regulations at this time is that these sales too remain tax-free.

Discount rate is the percentage amount by which the lump sum will be reduced when you collect the cash. This rate varies accordingly with the amount of time that is still remaining before you get the rest of the payments and also how much you are selling. The longer you have to wait, the higher the discount rate.


So, make the right choice to follow the correct steps and make your sale a success.