The process of selling an annuity or structured settlement is not difficult, but it does involve you taking the step to sell, deciding how much to sell and going before a judge to approve your request prior to you getting your money.
Starting the process of selling annuities or structured settlements is simple. Ultimately, you first must decide if you need your money now instead of a few years from now.
Once you make that decision, you can have a free quote in hand in only a few minutes, and within 90 days you can have money in your bank account or a check in your hand.
In short, here’s how you gain access to your cash in four steps:
- Contact us for a free quote
- Accept a contract offer
- Get your cash advance
- Go to court to have a judge sign off on your transaction
Deciding to Sell Your Structured Settlement
If you are reading this page, chances are you’re already considering selling all or part of your structured settlement. That’s good. You’re doing your homework.
Now is the time to determine if this is the best decision for you and your family. Start by reading through your annuity or structured settlement contract, or even sitting down with your attorney or accountant to review the details. You should know and understand this document thoroughly before getting started. Then ask yourself some tough questions, and answer them honestly:
- Do you absolutely need cash right now?
- Is the reason you need money a valid one, or are you thinking about spending this money on something that’s not necessary, a real luxury item?
- Is this the best possible way you can raise the money you need?
- Will the sale of rights to your future payments jeopardize your financial security?
- What type of sale works best for you — full, partial, split or reverse?
If you think these questions are hard, get used to them. These – and others – are ones you’ll have to answer if you decide to make this quick journey. At the end of the process, a judge likely will ask you these questions and others like them. Unless you can come up with the right answers, you shouldn’t proceed.
The right answers typically involve long-term, personal investment. You want to buy a home. You want to provide for a new baby. You want invest in your child’s private school education or college. You want to invest in your business. You want to pay off credit-card debt or other debt.
These aren’t the only good answers, merely an example of them. If this is where you are and selling makes sense for you and your loved ones, read on.
Getting Your Free, No-Obligation Quote
Call us to find out how much your structured settlement or annuity is worth. We’ll get you the most competitive offer on the market*, one that lets you know exactly what to expect moving forward.
Various federal and state laws will regulate the transfer procedure and protect your rights throughout. For example, once we tender an offer, it is required by law that we disclose to you in writing all the pertinent details. These include:
- How many months of your settlement rights you’re selling
- The amount of money you’ll receive
- The difference between the value of your settlement payments if the annuity contract were to be maintained vs. their value if sold
Putting Everything in Writing
As you work through the money you’ll receive for your sale, you’ll have to supply documentation to verify your annuity. This includes the settlement contract between you and the insurance company that issued your annuity.
You’ll also have to convince the buyer that you’re making the right decision to sell and that you understand that you’ll be selling your payment rights at a discount. The discount, determined by a discount rate, is the difference being the structured settlement company’s costs and profit as well as the value difference between your future payments and their present worth in ready cash.
The lower the discount rate, the more the seller will benefit. The higher the discount rate, the more the buyer will benefit. Discount rates can be negotiated, but most buying companies have a rate they typically abide by when purchasing. The average discount rate is roughly 12%.
Each state has its own regulations according to the Structured Settlement Protection Act (SSPA), so the process will abide by those. In your case, that means you’ll either have an obligation to have access to an attorney (unless it is waived) or to seek outside professional advice before entering into a signed agreement.
Once you accept your cash offer, the buyer will send you necessary transfer documents to sign and have notarized. The sooner you return the documents, the sooner the legal process begins.
Getting Cash while Waiting for Judge’s Approval
Once you return signed documents, a local attorney – one you hire or one we hire to assist you – files them with the court, after which the court will schedule a hearing.
This is where the waiting period begins. You could wait 30 days to get on a court docket, or the wait may be closer to 60 days. Much of this depends on where you live and what is already on the court docket in your area.
Some other elements of the selling process are also impacted by where you live because your state may have laws on selling annuities. Some states require sellers to get a professional assessment of the sale by a third party, while others allow for a “cooling period” in which you can change your mind about the sale. You may want to check with your lawyer or accountant about the unique laws in your state before pursuing the sale.
We can help you during this period by providing an up-front cash advance. Not everyone needs their money so soon, but if we feel you’ll get a large check soon, we’re happy to provide you with a little bit of money now.
Going to Court
When your case comes up on the court docket, you’ll find yourself standing with your attorney in front of a judge. You can expect to have to explain the need for your money, and show that you are not putting yourself or your family in financial jeopardy. The judge will take your reasoning into account when evaluating the case, as well as other factors such as the reputation of the purchasing company, the discount rate, your employment status and any previous transactions on the annuity.
Judges deal with structured settlement transactions all the time, so what you’re doing will not be unusual (although it may be new for you). Unless the court has a problem with your request, judges typically approve the transfer at this hearing.
After the court accepts the transfer, the annuity issuer will receive the transfer order for acknowledgement. Our partners at CBC Settlement Funding will send you a lump-sum payment, putting a check directly in your hands.
More Money Later
What happens if you still need money after you sell your payments? If you haven’t sold all of them, you have a right to sell the rest – or only a portion of the rest. The process for these so-called amendment sales is the same from start to finish.
But at that point, you’ll already know how it works. All you have to do is call us.
* If you have a legitimate written offer from someone else, we will beat it.