Whether you need cash for some short-term financial emergencies or you are restructuring your finances, this guide will help you sell structured settlements.

If you were awarded a structured settlement as part of a court case, you would likely receive regular payments over a long period. While this guarantees an income for you and your heirs, it isn’t always the best course of action. If you need more cash for emergencies, it’s essential to know how to sell structured settlements.

There are many ways to sell some or all of your structured settlement annuity. Let’s look at some of the options available to get cash for a structured settlement.

Structured Settlement 101

What is a structured settlement? If you are injured or awarded money in a court case or insurance settlement, it is often set up as monthly or annual payments over time. Depending on your age and the amount of money awarded, the settlement period could be a few years or the rest of your life.

In some cases, structured settlements can be inherited by your spouse or children if you pass away unexpectedly. 

Why Sell Structured Settlements

Selling a structured settlement gives you access to cash now instead of waiting for it over time. If you or a family member need long-term medical care, selling a structured settlement can give you access to necessary funds. Loss of work, risk of home foreclosure, college tuition, or overwhelming debt are all common reasons people sell their structured settlement annuity.

Suppose you inherited a structured settlement. If you would prefer to receive the compensation as a lump sum rather than annual payments, that is an option.

How to Sell Your Structured Settlement

You will need the assistance of a lawyer or accountant to sell your structured settlement. It isn’t something you can do on your own. It also requires the participation of the court. 

Start by talking with your attorney or financial advisor about how much cash you need and how you will use it. They can connect you with a broker or factoring company that buys structured settlements.

RSL Funding, for example, is a company that buys structured settlements. They aren’t a broker. They use their funds to purchase your settlement to give you the cash you need.

The process of selling your structured settlement can take between 45 and 60 days

What Options Do I Have?

When you sell a structured settlement, you can convert the entire settlement into a lump sum payment. You won’t receive the full amount of the settlement when you sell it. Depending on the size of your annuity, the value of your final payment will vary. 

It’s possible to cash out only a portion of your settlement, as well. If you need access to ready cash right now, but you want to maintain the regular payments from your annuity, you can do that. This is sometimes referred to as a structured settlement loan.

It’s Your Money

When a court awards you a structured settlement, you are guaranteed a specified amount of money paid over time. The money belongs to you, but you don’t receive it all at once. However, if you need faster access to cash, you can sell structured settlements.

Selling a settlement annuity requires the help of an attorney or financial advisor who will present your case to a judge for consideration. Once approved, you will receive your money in a month or two. If you have a financial hardship, medical emergency, or employment loss, selling a structured settlement can be a practical option.

For more financial tips and advice, please explore the rest of our site.

Leave a Reply

Your email address will not be published. Required fields are marked *