selling structured settlements: March 2012

Thursday, March 15, 2012

Why Some Companies Purchase Structured Settlements

You might have heard about these companies that purchase structured settlements if you have ever won a structured settlement. Basically the company would be paying you for your future payments so that you can have the money now. Of course they are going to charge you a fee for getting your money to you now.

The best part about these companies is that they offer you the ability to get a lump sum which could be potentially helpful in getting out of debt. This would mean that instead of getting your money on a monthly or even annual basis then you would have all of the money now. Think about the benefits of getting your structured settlement payments early.

There are many reasons why you might have been awarded structured settlement payments. Some of these include that you might have won a lawsuit that was for a personal injury case, a product defect, medical malpractice, or even wrongful death of a loved one. If the reason behind your lawsuit left you with lots of bills and debt then it might be absolutely necessary that you find someone to buy your structured settlements.

The reason that you would potentially be getting structured settlement payments over time is that they would be awarding you such a large amount of money that it would be hard for them to pay out over time. There are times when these payments last for lifetime and others when they just last for a period of months or years. This is mainly based on the amount of money and the company that is awarding it.

As someone who has just settled a lawsuit you will be guaranteed some income during this period of time. There are some advantages to you if you have a structured settlement however there are also many disadvantages when you need the money now to pay off bills or to purchase a home. The main advantage has to do with taxes.

Keep in mind that when you find someone to buy your structured settlement, that you will have to pay taxes on what you are paid. You are also waiving all of your rights to future compensation payments which means that you will not have any money coming in for the future expenses that you might have. Remember to think about whether or not you are going to continue to have medical or ongoing expenses that are not covered by insurance.

It is always important to make sure that you can pay for these things. The companies that purchase structure settlements do so as a way of making money. Basically they get all of the additional income over a period of time. This means that they will be making a profit off of your settlement payments.

Typically the company that is going to purchase structured settlements is going to be taking a fee of ten to thirty percent. So keep in mind that if a company is asking for more than this that they might not be the best choice. Plus if you have time to shop around for a buyer then you could potentially end up with a smaller percentage based fee.

Structured Settlement Sales Professionals

Introduction

The main way to providing quality services to clients in the annuity sector is to have structured settlement sales professionals who are able to guide clients with whatever query they may have. Personality and approach towards the client is considered very critical in business. The client should not feel he is being forced to a corner but he is gaining vital information from the sales person representing a company. Sales men have unfortunately built a bad reputation since they have been associated with badgering clients into making decisions they have not thought over, "just to get that sale."

Sales Professionals

This attitude has makes many people avoid sales men altogether and will even reject a product they require just to get the salesman away from themselves. Top companies in the business will enroll only the best structured settlement sales professionals who have receive professional training and instruct them not to force any client in to making a decision. These forced decisions do not work to the interest of the structured settlement buyers; in turn it gives the company a bad name in the market. Clients affected by the badgering clients tend to spread bad experiences they had with a company's sales men which spreads and affects its future business transaction.

Since the sales man plays a major role between the companies and the client there are some problems that need to be identified and solved to stop this downward trend that grips the sector. The main problem identified being target pressure to make sales, this pressure that companies exerted on salesmen makes them force clients in to these decisions.

Remuneration Factor

Salary/wages is another major constraint that makes them push for more sales. Since companies promised commissions for added sales they sparked a vicious cycle that ended up tarnishing sales men reputation and image in the general society. To stop this from happening companies have adopted radical changes that are aimed improving and changing attitudes of the public towards structured settlement sales professionals.

A different approach has been adopted today with companies diverting attention from door to door to marketing and concentrating more on marketing services and products on the internet. This reduces the pressure on sales men who then can concentrate on advising the clients correctly rightly without placing pressures of targets on their minds.

Current Scenario

Today there are more people spending time on the internet and it provides a wider audience to advertise to as well as being cheaper for the business. These factors have been used by many businesses today to improve sales since it not only advertises you company nationally but internationally as well. Most people who have access to the internet will resort to it when they require selling or buying a product. So instead of looking for them the game has changed to advertising so that when they look they can find you on Google first page.

After the search than the structured settlement sales professionals are able to approach and advise you. These changes are slowly improving the sales mans reputation in society and the best annuity buyers invest a lot of time and money to train the best to work for their companies.

Sell Structured Insurance Settlement

There are countless cases of personal injury, accidents and carelessness, that are concluded by courts everyday. The plaintiffs in such cases, are the parties who have suffered some kind of loss, even though they were not at fault. The defendants, on the other hand, are the ones responsible for the loss. Another party that is often involved in such a case is the insurance company of the defendant.

Structured Settlement It is first essential to know meaning of structured settlement, before we proceed to the query 'how to sell structured insurance settlements?. Legal systems of all nations have given their citizens rights to sue other parties for legitimate damages, that they have incurred when someone else is at fault. The damages might be injuries to health, loss of time, loss of revenue, damage to goodwill or reputation, etc. The plaintiffs can theoretically sue the party or parties responsible for almost any legitimate and genuine loss. The loss and damages are compensated by defendants, by the payment of a compensation that is prescribed by the court. In some cases, the plaintiffs and the defendants also have an out-of-the court settlement. The compensation that is to be paid, is either paid by the defendant himself or by his insurance company. The payment can be made in two different ways, which are, a lump sum payment or a structured settlement.

A structured settlement means that the amount of compensation is spread into several different installments, and is paid to the plaintiff over a specific number of years. Most of the time, the defendants prefer to pay the compensation with the help of a structured settlement as they can distribute the burden over a period of time, and one installment is a comparatively small sum.

Structured Insurance Settlement A structured settlement that is provided by the insurance company of the defendant, is known as the structured insurance settlement. The best feature of the structured insurance settlement is that there is a 100% assurance of the payment of installments. There is also a very rare occurrence of a default of an installment. Due to this feature of a hundred percent payment assurance, structured insurance settlements can be easily sold at a very good price. The reason that many people are ready to buy the structured insurance settlement, is that it ensures a secured and timely inward cash flow.

How to Sell Structured Insurance Settlement? Well there are several reasons for which one might need instant cash. The process of selling structured insurance settlements can be initiated with the help of a structured settlement broker. The structured settlement broker basically helps you to find a client who wants to buy a structured settlement. The broker will also help you to derive a price for the structured insurance settlement. A structured insurance settlement cost is usually derived by adding up all the installments, rate of interest, and small amount of profit. It must be noted that when you sell insurance settlements, the margin of profit is pretty low. In fact, the profit margin is received due to the assurance of installments. It must be also noted that some structured insurance settlements do not have a profit margin. Many structured settlements are sold at a lower amount than the actual cost of all the installments put together. The best way to sell a structured insurance settlement is to approach a broker who is a member of National Structured Settlement Trade Association or Society of Settlement Planners. The United States Department of Justice will also help you to get in touch with a broker if you want to sell your structured insurance settlement.

If you are planning to sell structured insurance settlements, you may also read more on:

In case the amount of the settlement that you are planning upon selling is too high, then you might also need to hire an attorney to get the paperwork done. I hope that you find the article resourceful, when you sell a structured insurance settlement. I also hope that I have answered the query 'how to sell structured insurance settlement'.

Sell Annuity and Structured Settlement Payment for Cash

When a person meets with an accident, his insurance company gives him a choice. He can choose between a lump sum, or a series of future payments to pay out his medical bills. This form of settlement called structured settlement has become very popular in the last decade. The insurers have marketed the structured settlement as a cost-effective settlement tool.

Structured Settlement Annuity

An agreement or the deal for a periodic payment of compensation to the accident victim or a sick is known as structured settlement. An insurance company makes the payment. The victim can either opt for receiving a stipulated sum at regular intervals or a lump sum.

A payment of fixed amount of money at regular intervals is known as annuity. When a structured settlement is awarded by a lawsuit, the insurance company buys an annuity. The annuity pays an interest on the principal amount for the agreed period of time. This is one of the reasons why structured settlement is also known as the structured settlement annuity. However, if the recipient of the structured settlement is badly in need of money, the structured settlement can be exchanged for entire lump sum or for a part of the recipient's future annuity payments.

Is it Possible to Sell Annuity and Structured Settlement Payment for Cash?

It is possible to sell annuity and structured settlement payment for cash. You should be aware of the fact that structured settlement is specifically designed to meet your financial obligations over a period of time. However, if you are facing a situation where you are in need of lump sum of cash, then you can sell your annuity or your structured settlement. This arrangement helps in meeting your immediate financial needs. A noteworthy point is you can sell either a part of your annuity/settlement structure or all of it.

You should also be aware of the fact, you can sell your structured settlement to pay your annuity. Selling structured settlement to pay off annuity is a complex process. It is advisable to get an assistance of a structured settlement specialist. When you are selling your structured settlement to a private lending institution, it is advisable to do a background check on that financial institution. This is an important step to be taken before you actually start the process of selling structured payment for cash.

Few Tips to Sell Annuity and Structured Settlement Payment for Cash

Keep in mind the following tips when you plan to sell annuity or the structured settlement payment in return for the cash. Before you plan to sell your annuity and structured settlement, you should have an idea of how much amount of cash you would require. You can sell your annuity and structured settlement to pay off your medical expenses, tuition fees or clear whole or part of your debts. You can sell their annuity to invest in stocks and shares. Prior to approaching a note investor or financial institution, you have to document the details of your structured settlement. The reason is the private financial institution you are approaching would require details of the life insurance company that is backing your annuity, amount of each payment, the date of payment and also how many payments are remaining. The note investor or the financial institution would determine the current value of your structured settlement. The investor determines the value of your structured settlement when you provide him with the details such as amount of money required and also how many payments you wish to sell. Once the investor reviews the information you have provided, he will call you for a discussion regarding the payment options. Apart from that the investors who deal with structured settlements have access to various annuity buyers. An annuity buyer would offer the best deal for your annuity payments. The entire process of selling the annuity and structured settlement would approximately take 10 to 12 working days to complete. It is wise to clarify your doubts during the initial stages of the process. Remember that the whole process of selling annuity and the structured settlement is a complex process. You have to scrutinize the note investor or the private financial institution before approaching them. Take the help of a professional prior to making a decision. Specialists in structured settlement and annuity selling would be in a position to clarify your doubts and also give you the required suggestions.

Purchase Structured Settlements The Process of Buying Annuity Payments

Purchase Structured Settlements - The Process of Buying Annuity Payments

In order to purchase structured settlements Annuitants must first obtain court authorization to sell annuity payments in whole or part. Since annuities are often structured to provide long-term income to individuals injured in accidents, Annuitants must provide courts with a compelling reason to sell forthcoming payments.

Private investors who purchase structured settlements must abide by state and federal regulations. Nearly two-thirds of states prohibit the sale or transfer of annuity payments. Therefore, investors must work with a qualified attorney to ensure they comply with the law.

Annuities are also established for jackpot lottery winners. Instead of receiving lump sum cash payment winners can elect to obtain annuity payments paid out over the course of twenty years. Lottery winners often elect this method to reduce overall taxes and receive the full amount of the payout.

Individuals' fortunate enough to win lottery jackpots should consult with a lawyer to determine which payout option best suits their needs. Some states that prohibit the sale of annuities established for long-term medical or disability income will allow partial sale of annuities obtained through lottery payments.

Annuitants must obtain legal counsel before entering into agreement with companies or investors who purchase structured settlements. In many cases, the life insurance company which guarantees annuities must provide written permission to investment companies that want to purchase structured settlement annuities.

There are many reasons Annuitants choose to sell annuity payments. Common reasons include: obtaining cash for investment purposes; pay off credit cards and outstanding debts; obtain funds for college tuition; and home improvements.

Depending on state law and life insurance company policies, litigation settlements can be sold in whole or part. Investors buy annuities at discounted rates and provide Annuitants with lump sum cash. For instance, an Annuitant receives $25,000 per year for 20 years, which is paid quarterly. He receives $6250 per installment.

The Annuitant needs $50,000 to invest in real estate which he plans to use as rental property. In order to obtain the $50,000 he will need to sell two or more years of annuity payments. The funding source might assess a fee of 25-percent for providing upfront cash advance.

The Annuitant obtains permission from the life insurance company backing his structured settlement and presents his case to the court. Upon receiving court authorization, he transfers payment rights to the structured settlement investor.

The life insurance company authorizes transfer of rights and submits future payments to the investor until the number of sold payments is reached. Afterward, payment rights transfer back to the Annuitant who receives remaining payments.

Purchasing litigation settlements can be profitable for investors and provides consistent cash flow. Investment risks are minimal since annuities are guaranteed by life insurance companies. Investors charge upfront fees for providing cash advances, but must wait for disbursement of annuity payments.

Structured settlement lawyers can assist in negotiations and determine if purchase offers are reasonable. Annuitants and investors should weigh the advantages and disadvantages of buying and selling annuities, including tax liabilities.

Annuitants should comparison shop structured settlement annuity buyers to obtain the best deal. One trusted source for locating annuity buyers is through the National Structured Settlements Trade Association at nssta.com.

How to Sell Structured Settlements Online

In the beginning of 1980, that is when structural settlement experienced a huge growth which was attributed to the federal income tax which was because of 1982 amendment of the tax code.

Structure settlement payments are settlement agreed upon by a victim and a defendant. This is whereby a victim receives tax-free money from the defendant to meet the injured person's needs in small amounts rather than being given a lump sum at once.

Once this agreement has been made, the defendant is not in any position of changing it. This form of settlement is most frequently used these days.

It is preferred because both parties that are involved benefit in such a way that the victim receives his compensation directly from the defendant, and the defendant in return gets a litigation as way of reaching a settlement agreement.

The structural settlement way of agreement was created to replace the traditional way of settlement where by were usually compensated through just a single cash payment.

Under the structured settlement agreement, the victim receives cash structured payments on a periodic basis. This means that annuity payments can even be paid over a period of months or even years.

By selling future payments, many people receive monthly payments under an agreement that they can dispose some of their payments and be paid a cash sum.

Instead of waiting for future streams of payments, by accessing this money a person can be able to meet daily needs of his/her family without a lot of problems.

Therefore, the term factoring in this case means the process of reaching an agreement to sell one legal right of future payments to settle companies which in return allow for the preset value of the money.

In future when weighing any options, it would be better to try and work wit financially able companies that are ethical at the same time competent.

After managing to get this money some people decide to clear their debts or invest in buying a house, starting a business or even by paying their college education.

It can be also good by keeping the money in affixed account so that the money can be used in future when one has made up their mind on what they want to do with it.

If it is a large amount of money it can be advisable to look for a financial adviser in order to get professional view on how to invest the money.

How to Purchase Structured Settlements

Structured settlements is a method of payment that is usually used as an 'out of the court settlement'. Though structured settlements are used in the context of court settlements, there are many other scenarios where structured payments are seen. For example; an insurance company receives structured payments from the clients that they insure. Or, a lender or creditor receives structured payments from the person to whom he has provided the credit extension.

What are Structured Settlements? Structured settlements are often defined as a series of payments made to the plaintiff of a particular court case, by the defendant. As mentioned above, the defendant pays to the plaintiff a series of payments over the course of time. The structured payments are often made to the plaintiff in cases where the defendant is unable to compensate, in terms of a lump sum amount. Some of the cases where the structured settlement is made include, personal injury, liability, harassment and malpractice. Extension of credit from one trader to another, provision of insurance, payment or discounting of negotiable instrument or for that matter any legal and ethical transaction can be completed with the help of structured settlement. The structured settlements are sometimes also requested by the plaintiff or the receiver, in order to curb taxable income. The rights to receive money as a part of the structured settlement agreement are often traded in the secondary money market, in order to fulfill the plaintiff's need for urgent cash. There are also several people and organizations who purchase structured settlement rights. Certain organizations and people have a necessity for periodic and guaranteed inflow of cash. Hence, many of them prefer to purchase structured settlements.

How to Purchase Structured Settlements? The best way to purchase structured settlements is to approach a structured settlements broker. Make sure that the broker is a member of associations such as National Structured Settlement Trade Association or the Society of Settlement Planners. You can obtain a list of all available structured settlements rights that are for sale.

In order to purchase structured settlements, you need to first analyze your need for periodic cash inflow and importance of cash flow. There are always a significant number of structured settlement rights for sale in the money market. Thus, it is important that you analyze and shortlist the amount of cash inflow that you need every month. Another factor that you need to consider, is that there are two modes of payments, namely a constant structure where the amount that is received is same, and the second type of payment is where the rate of interest is applied to the installments. It is always advisable to check the number of installments such as 3 per year for 4 years, one in every quarter. The second factor that you need to consider is the purchase value of all the structured settlements put together, that you will be paying. There should be as less difference as possible in the purchase value of all the settlement rights and total of the amounts of all the settlements that are receivable.

The last step is to actually purchase structured settlement(s) and complete the legal formalities. It is usually advisable to appoint a lawyer or attorney who will oversee the legal paperwork of the purchase.

There are several factors that you need to consider after you purchase , such as taxation for the income, follow-up with the payer, etc.

Good Luck!

Get Several Structured Settlement Quotes Before Selling

You have been issued a structured settlement due to inheritance, the lottery, or an insurance claim. The money trickles in a little every few months, and the bills are piling up higher than the checks. You decide to sell your annuity to one of the many reputable, structured settlement purchasing companies, so that you can get the most of your money up front instead of in small doses; one of the most important steps before you finally sell your annuity is to make sure you get a quote for your sale.

Millions of people have structured settlements, or annuities, and many of those choose to sell their settlements for a lump sum. There are many local and national laws to protect those with structured settlements who choose to sell them. For example, an annuity buyer is required by law to disclose all fees up front, a law that is underused by many sellers all over the country.

To make sure you get the most of your structured settlement, make sure to choose a few companies with good, solid reputations and have them give you a quote. Whether you are selling all or part of your annuity, this can save you quite a bit of money (and headaches). Getting several quotes will allow you to hunt for the best buyer for your annuity.

Quotes from annuity buyers require full-disclosure by law, so a quote should be laid out with all fees, discount rates, and totals in an easy-to-read format. You may also want to get a third-party involved, if you are unsure what exactly you will be signing, and whether or not you're getting a fair deal. When you do decide to sell your annuity, the final outcome should be a sense of relief, not wondering if you have done the right thing. A simple quote can give you some peace of mind, and a little extra padding in your wallet.

Choosing a Buyer of Structured Settlement Payments

Are the biggest names or buyer of structured settlement payments the best? It certainly could be the case, depending on your circumstances. Or, are the other big or mid-size brokers better than the ones we all know and hear of?

Let's deal with facts!

Fact 1: The biggest companies have the bigger overhead

Fact 2: The bigger companies have a bigger staff (could be good, could be bad)

Fact 3. It's fact, you wouldn't want a buyer of payments who isn't smart enough to keep overhead down and money in your pocket.

Now do the accounting!

1. The advertisements and budget is coming out of the seller of structured settlement payments pocket, yours!

2. Does it add up?

Choosing a buyer of structured settlement payment company is indeed a personal decision. Use your own intuition. If it's the bigger company for you then great! If it's the other major leaders or buyer of payments companies that interest you, then great. The main thing, your biggest priority, should be getting the best offer for your structured payments or annuities.

If you are in solid need of funding, and have been considering selling off your monthly payments, do your research. The money is yours, so remember, you deserve to get the largest quote, not settling for less.

Make sure you feel comfortable that you are not being pressured or sold too quickly. Make sure that you will choose the best buyer of payments, by checking the reputation of the companies you are getting quotes from.

Once you get your quotes, talk to each of the buyers. Use your own intuition to select the best buyer. Add up all the statistics from your own personal research, the facts, and accounting so that in the end you will be sure you are making sure you are getting the most amount money instead of less.

It just makes sense to add it all up. This could be the one and only time in your life that you can get a large cash lump sum structured settlement. You could be in financial debt up to your ears, and need a way out. Like everyone we have bills to pay and need to be smart with our money.

Or, you may want your money now instead of later, for investment or a new business idea. Choosing the right buyer of structured settlements payments is a very important decision, it's also a very personal one.

Benefits And Safeguards Provided By The Structured Settlement Protection Act

The Structured Settlement Protection Act states that certain transactions regarding the sale of a structured settlement need the approval of a judge in your state's court before they can be completed. It is also stipulated that the responsible insurance company making the payments need to be part of the process prior to the sale.

Prior to the inception of the protection act it was not necessary that insurance companies be informed of change of ownership of a structured settlement, and quite often did not know of the change until after the fact.

So, whether you are comfortable with the payment setup of your settlement or are considering selling your annuity, it would be in your best interests to learn more about the protection act.

Requirements of the Protection Act

The act now requires that any interested parties be notified of a sale or partial sale of a structured settlement twenty days prior to any court hearing seeking approval for any changes.

Prior review by a judge is required before any sale takes place. This is done to insure that the sale is in the best interest of the person or client receiving the annuity.

This requirement exists for the protection of the client. Before the implementation of the act there were companies that unscrupulously took advantage of many people who wanted to sell their settlements by offering paltry and unfair amounts to purchase their annuities and settlements.

Many clients, either because of the lure of a large lump sum of money or lack of knowledge on the subject, fell prey to these tactics.

Benefits and Safeguards of the Protection Act

The client selling the settlement must disclose the arrangements associated with the sale along with their personal financial affidavit describing their current financial status. This usually must be submitted three days prior to any finalization of the sale or contract signing.

It is now the responsibility of the buyer of the settlement or annuity to disclose all information relative to the purchase and sale of the annuity or settlement, not the insurance company, issuer or client.

A company that is proposing or trying to buy your settlement must also advise you to seek legal advice before proceeding with sale. This also must be given in writing, and must be done before any information can be presented in court,

Once all documents have been signed, the seller or client still has three days to change their mind about the decision to sell.

Avoid Having Your Structured Settlement Payments Serviced by a Factoring Company

Avoiding the servicing of structured settlement payments can net you tens of thousands of dollars or more in the long run. The servicing of structured settlement payments occurs when a seller decides to sell and split some payments. For example, if you are receiving a monthly sum of $1,000 and decide you would like to sell 50% of each disbursement, you are causing a split. Doing so, will create additional record keeping requirements upon the insurance company. Some insurance companies refuse to do this, thus a special need was created upon the factoring industry to service structured settlement payments. This meant that if you decided to split structured settlement payments and your insurance company refused to do so, all your payments would then be assigned to the structured settlement factoring company who in turn would split the disbursements. The "servicing" of payments by the factoring company entails receiving each disbursement from the insurance company and then paying to the seller the appropriate amount. In the example above, the factoring company would receive the full $1,000 monthly sum, and then directly pay the seller their $500 split payment.

At initial glance there does not seem to be much wrong with this set-up. However, if or when the seller decides to sell the remaining payments or portions thereof, this is when costly issues surface. Continuing with the example above, say you now decide to sell all or a portion of your remaining $500 per month payments. Because these payments are being serviced by a factoring company you must now inform this factoring company of your intention to sell your remaining payments. Since these payments were "assigned" to this factoring company, they have control over these payments. This control devalues your remaining payments due to several reasons:

1. Your future payments are worth less because payments are made to you directly by a factoring company and not a highly rated insurance company. This means that the payments are not as guaranteed than if the payments are made by a highly rated financial institution. Prospective factoring companies will now have to further discount this additional risk when calculating the present value of your remaining payments. In other works, the risk of payment default is higher from a factoring company than a highly rated insurance company.

2. Your future payments are worth less because the factoring company that is servicing all remaining payments will use this leverage to provide you with low ball offers. In the event you can obtain quotes from other factoring companies, the quotes will be a lot less due to existence of payment servicing and the additional work and risk involved with purchasing payments from a non-insurance company.

These reasons alone can cause you to lose tens of thousands of dollars or more in the sale of your remaining structured settlement payments.

In addition, one has to be weary of situations when your intent is not to have any remaining payments serviced by the factoring company. This happens when payments are not split, but when you sell only parts of some of your future payments, and the factoring company gets you to assign all remaining payments even when not required by the insurance company. Even though the servicing of payments was totally unnecessary, the goal of the factoring company is to lock you into an unsuspecting position and to potentially secure future business from you in the event you should decide to sell any or all of your remaining payments.

The practice of servicing payments is not new and many factoring companies engage in it including J.G. Wentworth and Peachtree Financial Solutions. Regardless of their reasoning, including facilitating the sale of structured settlement payments particularly in cases when the insurance company refuses to split payments or to secure future business by locking in clients by unnecessarily servicing their remaining payments, the fact is that the remaining unsold serviced payments will be heavily devalued.

Even though you may have zero interest of selling any remaining payments, any questions you may have surrounding your structured settlement annuity policy, will now have to be directed to the factoring company and not to your insurance company.

Knowledge is power. You can protect yourself by knowing how the servicing of structured settlement payments can affect the value of your remaining unsold payments.

Advice For Selling Structured Settlements You Should Not Ignore

There are a variety of ways people come to receive structured settlement payments - personal injury claims, annuity arrangements, and so on. Whatever your situation, if you are thinking about selling your structured settlement for a lump sum of cash, there are some important factors to consider. First, you should make sure that it is even possible to sell your structured settlement; it is not always the case. Even if it is possible, make sure you are aware of the costs and penalties involved. Below are some important tips that should not be ignored.

First, if you have not settled your claim yet, consider if receiving a structured settlement is the right choice for you. It cannot be stressed enough - now is the best time to decide between a structured settlement payment plan or a lump sum. Anything that you do after the structured settlement is in place will invariably involve additional costs to you. Keep in mind that combination arrangements can sometimes be reached - a smaller lump sum up front in combination with smaller structured annuity payments, for example.

If your structured settlement is already in place, keep in mind that it was probably set up from the beginning in a way that is tax-advantaged for you. You may therefore have significant tax penalties if you decide to sell your payments for a lump sum. Be sure to see a tax adviser to get the best advice for your case.

Sometimes, sellers of structured settlements run into federal or state limitations. There are some federal regulations which limit the sale of structured settlements, and approximately 2/3 of states have similar legal restrictions. Find out which laws, if any, apply in your situation. At the very least, you may need to obtain court approval for the sale of your settlement payments. In addition - if your structured settlement was issued by an insurance company, they may have language in the settlement agreement which limits sale of the periodic payments. Don't be blinded by the prospect of getting a huge lump sum of cash up front. Not only must you make sure you will not spend the money unwisely, you will need to check around and compare offers. The discount value of a structured settlement can vary widely from buyer to buyer, but it generally ends up being 50% of the value of the periodic payment total. Also - make sure you research each potential buyer carefully. Check with the Better Business Bureau in your area, and ask for references.

Getting good legal help can be a wise investment when it comes to . A lawyer with experience in this area can help in several areas. First, he or she can tell you if the buyer's offer is a good one, given the current market conditions and their experience with other clients in the same situation. Second, he or she will be able to review the terms set forth by the purchaser of your settlement payments, and alert you if any red flags are raised. Lastly, should the transaction go sour, a lawyer can protect your rights and make sure you are dealt with fairly by all parties involved.