Essential Tips to Help Sell Structured Settlement Annuity


Everyone, including me, would often be anxious to know if the periodic payments would be sufficient for our necessities. If you have a loved one who passed away and has provided you with jurisdiction over their structured settlement payment, or if you think you can use a lump sum to open up a business venture, you might think about the option to sell your annuity. However, selling this periodic payment is not as easy as trading stocks or your garage items. It is an intricate process wherein you need the help of professionals and experts. Here are some tips that I learned when I sell my structured settlement annuity.


Take Things Slowly

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One of the most common mistakes that I noticed when I sell my structured settlement annuity payment is that most people are in a hurry. They often make a hasty decision that they will regret in the end. According to the study, at least 1/5 of Americans face debt and sell their annuity to settle their debt. However, if you do not take your time to analyze your situation, there is a tendency that you will face a more severe problem in the future.


Avoid Selling the Entire Annuity

 Sell Structured Settlement Annuity

You need to remember that the structured settlement annuity is one large investment. You are never obliged to sell the entirety of your periodic payments. In my case, the professional recommended that it be more beneficial to sell my structured settlement on a limited basis. For those relying on their annuity as a major source of their income, think about your situation and what will happen if you sell the whole thing.


Seek For the Help of the Experts


As mentioned above, selling the structured settlement is a complex task. There are things that an average person will not understand and will catch them off-guard, such as the surrender fee, that might affect your decision and the result. To avoid any surprise and get the best value out of my annuity, I decided to seek the help of professionals to help me sell my structured settlement annuity.


Consulting With Stakeholders

 Sell Structured Settlement Annuity

The average household in the US carries at least $129,579 in outstanding debts. This means that having a steady stream of periodic payments may help you overcome your deficit in the future.   Before I decided to sell my structured settlement annuity, I consulted the people who are currently benefitting from my annuity. After hearing their thoughts and opinions, I decided to create a plan according to their input.


All in all, I decided that it would benefit us all to sell my structured settlement payments. I also consult family members and some professionals in finance to ensure that I am creating the ideal decision.


Benefits of Selling My Structured Settlement Annuity


Individuals who are currently negotiating on a worker’s compensation or personal injury claim are often presented with the option to receive a structured settlement payment. Basically, this type of periodic payment is awarded to the plaintiff due to a court decision. The aggrieved party will be receiving an annuity instead of a lump sum as an exchange for all future liabilities caused by the damage or accident. Though it may sound that structured settlement payment offers financial stability and comfort, recipients usually find it a quandary, especially when thinking about whether they should sell it or not. In my case, I decided to sell my structured settlement annuity. Those who will choose to sell their structured settlement will realize its benefits.


Eliminate the Waiting Time

 Sell Structured Settlement Annuity

Some people do not have the time to wait for periodic payments. In my case, it would be better for me to sell my structured settlement annuity to serve as capital for my business. Recipients of annuity may think that receiving payments periodically seems practical but getting a lump sum can support you in opening a new business venture and a chance to be more financially stable.


A Great Form of Investment


It may be true that the annuity is entirely tax-free. It does not quickly depreciate in time, especially for individuals involved in a recent accident. These people can no longer perform and function as the average people, and they need to seek opportunities that will allow them to find a steady source of cash. In my case, I treated it as a form of investment when I decided to sell my structured settlement annuity. Recipients of annuity should also do the same thing and turn it into an investment that will support them in the long haul.


Help You Get Out of Debt


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Most of the recipients of the periodic payments often find themselves in massive debt with their inability to support themselves due to their job loss and injury. Aside from that, previous expenses such as mortgage payments, credit bills, and hospital fees accumulate over time.   Getting out of my existing debt is one of the reasons to sell your structured settlement payments. The holder of the annuity will be able to receive their cash immediately upon settling on an agreement. The money can be used to clear your outstanding debt, and you will still have enough money to start a new venture.


The lump sum is the first thing you need to consider when you decide to sell your structured settlement annuity. Individuals should consider the company offering the highest bid and most significant value for their structured settlement.


How do I sell my structured settlement annuity?

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Before selling the structured settlement, you need to consider if the total sum will meet your entire financial needs compared to receiving just a small amount of your structured settlement monthly. Once you are determined to sell your annuity, the next thing you have to figure out is the amount of money you may need. After that, you need to know the process when selling your structured settlement annuity.


Preparing the Paperwork


The first thing you need to do is gather any paperwork related to your annuity. If you do not have the proper documents, the buyer of your annuity can aid you in producing copies of the documents and obtaining the appropriate paperwork.


Getting the Estimate


The next step is to contact a buyer of the structured settlement annuity. If you think of selling this partially, ask them for a quote for selling a fraction of your annuity payment. The annuity buyer can also help you get your annuity information if you have no idea about how much you will regularly receive until your annuity is overdue.


Accepting the Offer

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After determining whether you need to sell a portion of your annuity or the entire annuity to get the desired amount of money, the next thing you need to do is inform the buyer that you are now decided to accept the offer. When you are not satisfied with their offer, you can request them to revise their quote.


Signing the Agreement


After accepting the offer of the structured settlement annuity buyer, they will send you an agreement together with other legal documents that you need to sign. Carefully review the details, especially the terms stated on the contract, before signing it. If you find no irregularities in the paperwork, you must sign it and return it to the buyer.


Court Order

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Depending on the state where you reside, the buyer may need to work with the court in your state to get hold of the order from the judge that will reassign the rights of the structured settlement payment that you sell.


The Annuity Buyer may send you a wire transfer or a check

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After the state judge releases the court order that transfers the rights of the structured settlement annuity, the court order will then be returned to the insurance company that initially issued your annuity. They will be notified to send the payment to the part of the annuity that you sold to the buyer. After the insurance company confirms that they received the order, the buyer must give you the complete payment either through wire transfer or through check.

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