The Best Structured Settlement Annuity Companies

Best Structured Settlement Company for Lottery Winnings

If you’ve won a lottery and are receiving the payout in monthly installments, you may be able to sell it for a single payout. Woodbridge Structured Funding is a structured settlement company that purchases lottery rewards. However, the state you won the lottery in can determine whether you are eligible to sell a lottery payment. One factor in this company’s favor: Woodbridge offers to match the rate offered by other structured settlement companies to purchase your lottery annuity.

Woodbridge Structured Funding

J.G. Wentworth is one of the largest buyers of structured settlements. It offers a variety of financial services, including prepaid cards, personal loans and mortgages. (It also owns Peachtree Financial, another buyer of structured settlements.)

If you’re receiving monthly payments from an insurance payout or lawsuit settlement – also known as a structured settlement annuity – but need cash immediately to pay for medical bills or other significant expenses, you can sell all or part of your annuity. A structured settlement company, such as J.G Wentworth, will buy the future payments of your settlement in exchange for a single cash payment.

Be aware that you will be selling your settlement at a discount, so you won’t get the full amount. To find out how much you’ll receive up front, you’ll need to contact J.G Wentworth for a quote. Factors that influence the amount you’ll ultimately receive include the length of your settlement and the amount of each payment.

As part of the sale, a judge will need to approve the sale, and depending on which state you live in, you may be required to consult with a financial advisor. It can take between 60 to 90 days to receive your funds.

J.G. Wentworth also works with services that can help you get pre-settlement funding. If you’re involved in litigation, J.G Wentworth can help you get access to some of your settlement before the case is closed. This isn’t a loan but is a portion of your settlement you get in advance.

In addition to structured settlement annuities, J.G Wentworth also buys lottery winnings, inheritance advances and mortgage notes. If you receive cash payments, J.G. Wentworth may be able to convert those monthly installments into a single lump-sum payout.

To help you learn more about its services and the structured selling process, you’ll find a FAQs section on J.G. Wentworth’s website. There’s little information about rates and fees, so you will want contact the company to learn more.

If you have a structured settlement from a lawsuit or accident, J.G. Wentworth is a company that purchases those settlements and gives you an immediate payout. If you need money immediately, this company may be an option worth exploring, but be aware that you will lose a significant percentage of your settlement’s lifetime value.

Best for Quick Payments

Typically it takes months to receive payouts from selling your structured settlements. Some companies claim to accelerate the process. Strategic Capital is one such company; they have streamlined the process and are capable of delivering payments to you in as little as 18 days. This varies depending on the state you live in and the particular details of your settlement. Strategic Capital is also admirably transparent about the sales process, with a wide variety of articles on its website.

Strategic Capital

Strategic Capital

Strategic Capital’s website emphasizes repeatedly that not everyone should sell their structured annuity settlement. It recognizes, however, certain situations where having all or part of a structured annuity immediately might be a better option. Education or sudden illness are two such examples the company cites. Whatever your reasons for cashing out your structured settlement, Strategic Capital can work with you.

You can sell only part of your annuity. In fact, one of its missions is to “tap into the structured settlement as little as possible…addressing the client’s current needs while at the same time trying to help the client avoid problems in the future.”

The first step in the annuity cash-out process is discussing your needs with a counselor. Before Strategic Capital even talks about how much you can get for your structured annuity, however, the counselors discuss your needs and your situation. Is there another way to raise the money? Could you restructure your settlement payments instead?

If you’ve decided selling your annuity settlement is the best course, it gives you a quote and sends you the contract. While you should (or may be required to) check with a lawyer, Strategic Capital encourages you to take the contract to a lawyer. Once you’ve approved the contract, it then takes the contract to its lawyers to apply for the change in the settlement payments or sale of the entire structured annuity. Once it has all the approval paperwork, it takes about 72 hours to get you your money.

Strategic Capital’s streamlined the process means it often gets settlements approved and money sent to you in as little as 18 days. This varies by state regulations and the complexity of the settlement.

This structured annuity settlement buyer can work with structured settlements from lawsuits or insurance, lottery or casino winnings, and structured annuities that you may have bought or inherited and now need to sell.

The website has many useful links, including suggestions for alternate ways to get the money you need without selling your structured settlement. You can find each state’s statutes for structured settlements as well.

Strategic Capital is a structured settlement buyer in every state. Its website has letters of recommendation from several lawyer associations.


How We Selected Our Lineup

Our lineup of 10 structured settlement companies was selected based on several factors, including customer sentiment, company visibility and whether the company belongs to industry groups such as the National Association of Settlement Purchasers (NASP). In order to be a member of NASP, a structured settlement company must abide by a code of ethics, a consumer bill of rights and participate in anti-fraud initiatives. We were not able to evaluate rates and fees, since they depend so much on the specific details of each settlement. In addition to reading our buying guide, check with the settlement companies you’re considering to determine what the exact rates and fees are if you decide to convert all or some of your structured settlement to a lump sum payout.

Based on our research, here are our recommendations for the best structured settlement companies:

What Is the Process for Selling My Annuity?

Selling a structured annuity should not be undertaken lightly. It is a lengthy process that involves a court approving the sale. The entire process takes upwards of several months. The process differs widely depending on the state you live in. Most structured settlement companies will aid you in the process.

If you’re considering selling a structured settlement annuity, you’ll want to follow these important steps:

  • First, shop around to find the best quote. Structured settlement companies apply what’s called a discount rate to the future payments you receive, so the lump sum payment is smaller than the total amount of your settlement.
  • Second, you’ll need to provide documents to the company you are selling the structured settlement to. This includes the documentation from the insurance company responsible for the annuity, the settlement and release agreement from a lawsuit, and the application for selling the settlement. If you’re divorced or have declared bankruptcy since receiving your annuity, you may need to provide additional documentation.
  • Third, depending on the state you live in, you may be required to consult an attorney or a financial advisor before selling your structured annuity. You can find a list of the state-by-state requirements here.
  • Fourth, a judge will need to approve the sale of your structured settlement. Further, the judge will take steps to determine whether you understand the terms of the sale. You’ll also need to demonstrate that you have a convincing need to sell your annuity. Most structured settlement sales are approved, but reasons for denial include a failure to demonstrate adequate financial need, improper documentation or a poor discount rate from the company.

Pros and Cons

Pros & Cons of Selling a Structured Settlement

There are benefits and drawbacks to selling your structured settlement. Here are just a few you should consider:


  • You get immediate access to your money instead of receiving it monthly over several years.
  • The lump sum of your settlement retains the same tax status as your initial settlement. An insurance settlement is tax free, so, too, are the proceeds from selling one.
  • You can sell a portion of your settlement without depleting the entire annuity.


  • When you sell your structured annuity, you give up future value for present gains. Structured settlement companies take into account the depreciation of future earnings and apply a discount rate to your settlement (more on that below). What this means is for a $100,000 settlement, you can expect to receive anywhere from $30,000 to $50,000.
  • It can sometimes take months for the paperwork to be completed and for a judge to approve the sale. If you need money immediately, you may want to look into alternate ways to get it.
  • If you rely on your structured settlement to pay bills, selling is unwise. You can compromise your income stream and leave yourself at risk for dire financial consequences.

What Is a Discount Rate?

The discount rate represents the amount the company deducts from the total of your structured settlement. While it may sound like a simple percentage, it is much more complicated than that. The discount rate assumes that a dollar today is worth more than a dollar in the future and applies that principle to the payments you’re selling.

Take the example above of a $100,000 settlement that is sold for between $30,000 and $50,000. This implies a discount rate of 50 percent to 70 percent. But discount rates typically range from eight to 18 percent, and can sometimes be as high as 30 percent.

The math doesn’t seem to add up, and this is because the structured settlement company looks at each payment you sell and applies a different discount rate to each payment depending on how far into the future the payment is. Therefore, next month’s payment has a different discount rate than a payment five years from now.

When you receive a quote from a structured settlement provider, just be aware that it will usually reflect an average of all the discount rates on all the payments you plan to sell rather than it being a certain percentage applied to the total of your structured annuity.

There is a benefit to selling just a portion of your settlement. By selling some of your forthcoming monthly payments, they have a lower discount rate than payments that are further out in the future, which means you’ll be able to get more money and still have access to future payments.

Here are few more things to keep in mind when selling a structured annuity:

  • Explore your options. Get multiple quotes from different structured settlement companies. You’re not obligated to go with the first offer you receive.
  • Haggle. Once you get an offer, don’t feel like you need to accept it. You can negotiate the rate and try to find a middle ground with the buyer.
  • Understand what you’re getting into. Most states require some kind of consultation with an attorney of financial advisor. We recommend taking advantage of that service so you fully understand the impact of selling your annuity.

Tax Repercussions

As mentioned earlier, when you sell your structured settlement, the payout is not taxed. The exception, though, is from lottery winnings, which are taxed, and the funds from selling a lottery annuity are taxed as well. And if you invest the money from your lump-sum payout, earnings from those investments will be taxed.

If you’ve received a structured settlement annuity through a lawsuit, an accident, or winning the lottery, selling it to a structured settlement company can let you take advantage of that money more quickly. We’ve assembled a lineup of the 10 best structured settlement companies so you can explore your options and find the best deal for you. You can read more about these companies and what they offer in our buying guide.


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