Tips for Selling a Structured Settlement


Selling your annuity

Many people these days have structured settlements. These can be from lottery winnings, lawsuits or insurance settlements. In 2013, payouts from medical malpractice lawsuits accounted for about $3.6 billion. The average price of an employee lawsuit settlement is $150,000. For a lottery like Mega Millions, with a prize of $50 million, the initial payout is around $750,000 followed by 29 annual payments. All of these payments are subject to income taxes. The long draw out of payments is one reason many people choose to sell their structured settlements.

Steps for getting cash for structured settlement:

Decide you want to sell your settlement. You will need to have a reason for wanting to sell your settlement. At some point a judge will have to approve the sale and will ask about your reasons so just be prepared to explain your rationale for selling.

Do your research and find the best deal for your settlement. There are many companies who are in the business and will buy structured settlements. You need to find a reputable company and make sure your interests are protected throughout the process. Talk to your friends and family and see if any of them have any experience in this area. You would be surprised as to how many people do. Check out the ratings of the company through the Better Business Bureau. Getting cash for structured settlement should not be a painful process.

Finalize all paperwork. Read everything before you sign anything. If you have questions, call the company to whom you are selling your settlement. If they are hard to reach, they may not be the right company for you to deal with.

Have your settlement sale approved by a judge. The rules involving this are becoming more and more complicated. They will review your offer and plan and want to know what your reasons are for selling your settlement.

Get your cash! It generally takes about 45 days from when everything is finalized until when you receive your payout.

Reasons for Selling a Structured Settlement:

Further your or your kids? education. College is expensive. Having an annuity can count against you and your children with financial aid offices at universities. You can use the money from a structured settlement to pay for college for yourself or others.

Start a new business. Investing in a startup company is expensive and getting financing is not always easy. If you have always wanted to start your own business, getting cash for that annuity might be the best way to get you started on that dream.

Pay off your mortgage. If you own your home but still owe a lot on it, getting cash for structured settlement may be the way to pay off your mortgage.

Pay for repairs or renovations on your home. If your house needs repairs that exceed what you can afford or if you simply want to turn it into your dream home, you can do these things after getting cash for structured settlement.

Pay for medical bills. Medical bills are one of the top reasons for bankruptcy filings in the United States today. In fact. many people are just one medical emergency away from bankruptcy. If you or a family member is in a situation where they will have large medical bills, this may be a way to pay them without resorting to bankruptcy.

As you may have guessed, the list for things you can do after getting cash for structured settlement is pretty much endless. You can also use the money to enjoy your retirement and travel around the planet. Some people really do prefer the idea of having payments spread out over a longer period of time. They like the stability of it and to be honest, you do give up a decent amount of money when you sell your structured settlement. Only you can decide wehat the best plan of action is for you.

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