Selling Structured Insurance Settlements: How It Works

Interested in selling your structured insurance settlement payments? You came to the right place. Structured Settlement Investments pays cash for structured insurance settlements!

Structured Insurance Settlement, Defined

An insurance settlement is an award or settlement resulting from any kind of insurance claim. The insurance company that provides coverage for the defendant in the claim or lawsuit agrees to pay a settlement amount to the plaintiff or claimant, in return for release of the claim and/or lawsuit.

Often, insurance companies offer a structured settlement rather than an immediate settlement. Under a structured insurance settlement, the insurer promises to pay money in regular installments over a period of time.

To fund the structured insurance settlement, insurance companies typically purchase an annuity under which the claimant is paid the structured payments. This is known as a structured insurance settlement, structured settlement annuity, or simply an annuity.

Structured Settlement Annuities Can Be Sold for Immediate Cash

If you go through a typical structured settlement agreement, you are likely to get the impression that you cannot sell the settlement payments. Where the insurance company has purchased the annuity, the annuity itself belongs to that company and not to you.

Therefore, you cannot sell the annuity. However, this does not mean that you do not have any options in accelerating your payout.

The right to receive future payments under the agreement is an asset that belongs to you. You can sell this asset on terms that you negotiate with a third-party buyer of structured settlements, also known as a structured settlement factor.

The Legal Process

Selling a structured insurance settlement or annuity often requires a court order. Federal and state laws in some jurisdictions allow the sale of annuities only after a court review of the transaction. The court’s legal review examines the annuitant's financial circumstances, and the arguments in favor of the sale of the annuity. You, the annuitant, would have to show that your interests would be better served by an immediate lump sum of cash, or other alternative, compared to the inflexible receipts under the existing annuity.

Structured Settlement Investments Will Help You through the Process

We at Structured Settlement Investments will help in every stage of this process. We will assess your situation and suggest the best options available to you. We will also compute the present value of the future payments you are selling. In determining the “present value” of your future payments, we will take into account the time value of money. A dollar in hand now is more valuable than a dollar you will receive in a year, and even more valuable than a dollar you will receive after twenty years. You can earn interest for on the dollar received now. Due to inflation, the purchasing ability of one dollar will also be greater today than it will be next year, and far greater than one dollar twenty years from now.

Structured Settlement Investments will help you through the sale process every step of the way.

Contact Structured Settlement Investments

To learn more about structured insurance settlements, please contact Structured Settlement Investments today.