How to Sell My Structured Settlement

Do you want to use your structured settlement funds? Are you looking for some effective ways to get immediate access to your money? The only approach to access your fund before the time is to sell your right to a factoring company. The process is simple, easy, and legal. However, you need to follow some legality to access your money. Here are the details.

Secondary Annuity Market: What Exactly It Is?

Structured settlements have started receiving popularity since the last several decades. Now it is considered as an equitable and efficient way to pay off a personal injury victim for suffering and pain. Structured settlements are designed to offer a steady source of income. You will not get a lump-sum one-time settlement. Instead, the income will be steady. Normally, structured settlements are done by insurance companies and paid by annuities. The Federal Payment Periodic Settlement Act has passed in 1982 by Congress to encourage the use of structured settlements. This act will exempt the revenue of structured settlement from income taxes. In fact, the annuity can earn interests without an income tax.Market


Structured payments are becoming more popular and increasing in numbers. Therefore, a secondary market came to the forefront to help all those who are interested in converting future payments into cash.


The buyers of structured settlements, are known as factoring companies, were first operating in a free environment. In some cases, they were taking the benefit of the eager and inexperienced sellers. Some companies made the condition worse by charging higher discounted rates to get more benefits from deals. To prevent these conditions, state legislatures took initiatives and worked with some trade organizations that include the National Association of the Settlement Purchasers and Structured Settlement Trade Association of Nation to make laws for the protection of sellers. These laws set consistent and clear standards to transfer the settlement payment in a secondary market.


Now the market is safe and profitable than ever. The state and federal laws have made the industry well-regulated that prevented dishonest players to enter and exploit sellers in the absence of any law and regulations.

Considerations for Selling Structured Settlements

Though it is easy to sell structured settlement, still, it is important for sellers to understand the regulations and their rights. You cannot take the right decision without a well-informed mind. Therefore, it is suggested to take the help of financial advisors or trusted attorneys to understand the structured settlement market. Make sure that the attorney has the expertise on the subject. More importantly, you should research factoring companies to find a reliable and reputed company. If the company has a credible history and a good reputation, you can expect long-term benefits.

Find a Reliable Factoring Company

It is possible to sell structured settlements. You can sell a fraction of payments or even your entire settlement. Also, survivor benefits are available for a definite number of payments or for a certain time period. You can get the detail in settlement contracts. However, you will have to choose a reliable factoring company to maximize the benefits.

If you want to convert future payments to cash for the current use, ask for a free estimate now. Know the worth of your structured settlement within minutes! Also, know the laws of your state. The Federal Settlement Protection Act of 2002 sets outlines and strict rules for the settlement sale. These laws are made to secure the right of claimants. States have some specific laws regarding structured settlements. Some of them might prevent to sell certain payments.


Laws are complex for selling your structured settlements for the workers’ compensation.

There are different federal laws and state laws regarding the selling of payments. Even if your state laws allow you to transfer the worker’s compensation income, federal laws might prevent in certain condition depending on the type of settlement. Judges give the decision in their favor most of the time. Also, you will need the approval of judges to continue with the transfer if both the state and federal laws support the transfer. The judges must be convinced that you are doing it for the best interest and it is not going to affect your future financial condition and you are able to pay your medical payments. The court might take forty-five to sixty days to give approval. If you want to get the cash in advance, then choose a company that offers this facility. A judge takes many factors into consideration such as your living expenses, life expectancy, and family milestones before giving the approval.

When you have some other income source in addition to your structured settlement, there is a high possibility of getting a judge’s approval. With a disability worker’s compensation case, you will be asked to have an extra income source to be entitled to sell your disability payments. Keep all these regulations aside and ask yourself why you need the money and consider implications before signing an agreement. Go through your future financial needs and know how this step will affect your ability for Social Security, tax benefits, government medical support, and some other benefits.

How to Sell the Settlement on Behalf of a Minor

Minor structured settlements are most carefully guarded. So, it is complex and demands more caution. However, you can sell it when the circumstances change in an extreme manner. A legal guardian or parent has the right to sell the future payments of a minor. As stated earlier, the process will be burdensome.

The guardian and parents need to prove that there is an emergency or urgent need of the cash and the child’s requirements can only be fulfilled by selling the structured settlements other than waiting for future payments.


Insider TIP

Factoring companies do not like to buy minors structured settlements

Some companies buy minor structured settlements very infrequently. The process takes longer and can drag up to years causing frustration. When a minor turns eighteen, he will be entitled to sell the future payment-partially and fully to factoring companies for a large-sum payment by following the procedure that enables adults to convert the future payment to current cash.

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